Two offer letters for same position

Dear Mr.Raj,

It seems second offer letter is the revised one and it was accepted and acknowledged by you.  Automatically second offer letter  supersades the ealier offer letter. .

It is felt that first was the offer letter and second was appointment letter, and that there is some confusion and full details should be provided.

You have posted that:” financial conditions like whole salary will be deducted if I leave before expiry of notice period, also recovery of relocation amount etc.”

These clauses can be termed as illegal.

Did the company mention these conditions in its job advertisement, interview call letter, offer letter etc…..?

You may show both offer letters, job advertisement, and interview call letter to a competent and experienced labor consultant, service lawyer or attach both in this thread.

To maintain the confidentiality you may erase the names etc.

If you leave without serving notice period company can claim notice pay.

Complete details  should be provided in the query.

Mr Kumar Doab, thanks for reply.

You are right the first is offer letter and second was appointment letter. In offer letter it is mentioned that ' We shall issue the formal appointment letter on  joining the company'.

As it is not possible to attach Offer letter & appointment letter, I am mentioning the major financial clause, 

The major two financial clause in offer letter are ,

1. Performance linked bonus Rs XXXX amount will be paid at the end of the financial year . You shall be  in company during payment of same.

2. Rs XXXX amount will be paid as special incentive during  first year of service, the same will be recovered if you leave the copmay before two years.

The major  financial clause in appointment letter are ,

1. Above sr no. 1 & 2

2. Your services can be terminated by giving three months notice from either side. However , the option to relieve you from  services before completion of three months notice  period shall rest with company subject to adjustment of salary & allowance in lieu of notice period.

3. You will be paid Rs XXXX as relocation amount, the 50% of same may be recovered if you left the company before two years. 

Now I am planning to leave the company, I am ready to accept deduction as per clause no 1 & 2 in offer letter but  company is asking me to follwo clause no. 2 & 3 in appointment letter for relieve.  

So can I  challange about clause no. 2 & 3 in appointment letter anywhere as per any labour law.

The recruitment was not advertised, company approached me after searchnign me from job portal. I have all email correspondancedone  with company but nothing is mentioned about clause no 2 & 3 of appointment letter. I come to know thses clause at the day of joing. I objected for these clause verbally but company say it is their HR practice, and signed the appointment letter.

thanks!

Raj. 

As you are contemplating to contest the conditions affecting you and you can not attach the documents it shall be appropriate to consult elders in the family, competent and experienced well wishers, trained legal mind in acquaintances, lawyer/law firm, show all documents and give inputs in person.

Given below is the heartfelt opinion.

You have accepted the terms and conditions expressed in appointment letter, however you have mentioned that as you has resigned from previous appointment you had no other option.

Next time you may try to leave the previous employer by notice of resignation and resign formally after seeing the final appointment letter, or ask the new employer to show the soft copy of the appointment letter drafted for you in advance so that you can also have time to discuss the appointment letter in detail.

Almost all employers sate what was stated to you verbally. However employee can also submit minutes of discussion and remark on dotted line appointment letter that ”in reverence to letter/email dated..”

It is true that almost all employers shall not allow any conditional acceptance or any remark and that almost all employees shall not adopt such practice, fearing that they shall loose the job.

Hence back to square one.

While employee shall claim that they had no option and had to sign under duress, employer shall claim that employee signed by his free will. All clauses expressed in appointment letter may not be legally enforceable courts do understand that having resigned to join new company employee had no option but to accept the terms of appointment. However courts take the final decision. The burden of proving and providing evidence is on employee.

A smart employee should keep record in writing and in his favor and develop rapport, goodwill and acquire exceptional levels of persuasion, persistence, negotiation, reasoning skills. Employee should remain and keep channels of communication open.

Employee should always consult elders in the family, competent and experienced well wishers, trained legal mind in acquintances,lawyer/law firm before signing on the dotted line and in various situations. It is better to consult before hand than repent later.

Offer Letter:

1. Performance linked bonus; apparently it is not statutory bonus. The conditions attached to this bonus need s to be seen and understood. Has the company supplied any separate terms and conditions attached to this bonus in writing, or included it in service rule book, HR policy circulated to employee, or is it mentioned in standing orders of the company?

“You shall be in company during payment of same.” No time or period is defined for disbursement. Obviously employee can not be detained for eternity or infinite or undefined period and wait for the payment. Having completed the tenure employee becomes eligible. However company may claim some reasonable time to assess the performance e.g. collection of payment, computation of returns etc

It is made part of your annual pay package. Having paid it company should not demand it back. Company may claim it is not part of wages. Wages once paid can’t be taken back.

You may write to company that the approved policy with detailed terms and conditions for this bonus is not supplied to you till date, and should be supplied immediately.

“Rs XXXX amount will be paid at the end of the financial year.”

Having stated it company is duty bound to pay at the end of financial year, which ends on 31^st March and new financial year starts on 01^st April.

Company would like to claim its interpretation on any matter shall be final and binding.

Has the company made any such statement in your appointment letter?

2. Incentive is for a special performance vs target over and above routine targets.

If you have performed in first year then any incentive attached top performance in first year should be paid to you. You should have targets set for this incentive, your performance and detailed terms and conditions for the same.

You may demand the same as in case of 1, mentioning these should have been supplied to you before/at the time of issuance of  appointment letter.

This seems not to be a retention bonus and it seems that no separate agreement for retention bonus is signed.

Appointment letter:

3. If company can terminate you without notice by paying notice pay you can also do the same. The notice pay is in lieu of the notice period.

However employee should always tender reasonable notice period and help the employer to designate and train the replacement, handover the charge and complete the exit formalities. Employee should remain vigilant and should not leave any room for employer to charge on any count.

Employee may look into Industrial Employment Standing Orders Act, SE Act and relate notice period with appointment letter.

Notice pay should ideally be @ Basic+DA.

4. If employee has relocated from one station to another to join the new employer should demand it back. If employer has relocated an employee to another station employer can not take back the expenses.

Employer and employee can rake up any issue however it should stand the test of law.

Dear Mr Kumar, thanks for your valuable observation and suggestions.

My company is deducting (Basic + HRA + Other allowances) against notice period compesation according to my appointment letter , which is almost 90% of my total monthly salary.

As you suggest I will approacht to any legal consultant.

thanks!

Pay means basic pay, personal pay if any, and DA. So notice pay as mentioned in offer is calculated on Basic plus DA as in case of  Govt/Semi Govt. Sectors. Private sectors may have different approach and treatment of  leading to different approach and treatment of recovery of pay in lieu of notice eriod.

Leave Encashment, PF, Gratuity, retrenchment pay compensation, are all calculated on Basic plus DA, therefore Notice pay should also be calculated on Basic+DA.

Private companies may claim in case of Termination Company also tenders notice pay @ Gross pay/CTC.
You may check the company’s stand on leave encashment is on Basic+DA or Gross pay in its certified standing orders?

This shall be another opportunity to obtain certified standing orders of the company. Majority of the companies do not even talk about standing orders. If standing orders are not certified model standing orders shall apply.