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Madhan (Lead)     05 September 2014

Diff. in employment terms in offer letter and appoint. lette

Dear All,


I was provided with Offer letter from a MNC in bangalore.  This offer letter had all the employment conditions of the company.  It did not had the conditions such as i should not join the competitor companies for one year,  when i leave the company.  I Accepted the offer and providing the signed copies to HR .  

I joined the company after two months of my notice period.  On the date of joining, they have provided me one more agreement /appointment letter in the company letter head, which had the clauses such as "Not to join the Competitor for one year , after leaving this company".   But, I have taken the decision to join here, since there was no restriction to join the competition as mentioned in the offer letter.  But now, HR is asking me sign the appointment letter which is having these additonal clauses than offer letter.  It is not fair. 

If i sign this, but still join the competition later, can they take any action on me ?  Please provide your expert advice.  Since i have to take a decision, your earliest reply would help me.  Thanks in advance for everybody.



Learning

 4 Replies

Kumar Doab (FIN)     05 September 2014

It is appreciated that you have chosen to discuss in time.

 

1. Is HR person your employer? In all probabilities: No! He /she at the most be (if empowered by Board in writing) signing authority on offer letter, appointment letter!

Has the establishment supplied soft copy or signed hard copy?

Is there a statement inserted in offer letter like................................" You shall have  to sign agreements at the time of joining"?


Has the company provided you the HR policy/Service Rules and Regulations mentioned in appointment letter before signing appointment letter. Usually it is stated that service conditions shall be governed by HR policy/Service Rules and Regulations................................but these are not supplied shown alongwith/before appointment letter. Download these and keep a copy.


Has it been stated that standing orders (certified/model) shall apply? Inquire and obtain the copy.

The agreements/clauses being enforced by company may be violative of standing orders. 

Any clause violative of standing orders shall not survive.



2. If accepted appointment letter may supersede offer letter (the language and statements should be examined by your able labor consultant/service lawyer).

Thus you shall be accepting T&C inserted by employer in appointment letter, agreements drafted by employer by your own volition.

Would it be workable for you to submit a gentle and carefully structured representation in writing under proper acknowledgment addressed to appointing authority, MD etc ........................................that you were allured to join........................and T&C envisaged by employer were communicated to you by offer letter dated................................and based on the offer made to you...........................you had resigned the current employment and now............................clauses/agreements have been added for you to sign without any prior opportunity given to you before the submission of notice of resignation to current employer/expiry of   notice period................................and having left your current employment you are left with no choice!

If you are able to do so then you shall be building a favorable record that you signed under duress.


3. The Indian courts have consistently been declining to enforce NON Compete Clauses/agreements post termination of employment...................................as it hits right to earn livelihood........................and clauses of Indian Contracts Act.


However the decision by court of law is pleasure of court of law and what it would be down the line from now can not be forcasted although the basic tenets and fabric of law may not change........................


4. IT is advisable to record such meetings/calls (audio/visual) and keep some witness/evidence for use at appropriate time in appropriate forum.


While you represent you must not use cut and paste option and show the job advt., job application, interview call letter, selection letter, offer letter, appointment letter, standing orders, HR policy/service rules and regulations, NON Compete agreement to a competent and experienced Labor Consultant/service lawyer and give inputs in person and let your lawyer draft and structure your representations to suit you in the long run.


If you feel that you shall come across such HR personnel/employers it is advisable to retain access to a competent and experienced Labor Consultant/service lawyer and discuss before hand and do not sign on dotted line in haste.

Madhan (Lead)     08 September 2014

Dear Kumar Doab,

Thanks for your Excellent reply.  It is really helping.  I have asked the company to send me T&C before accepting the offer and they send the same.   After going through, i have accepted the offer.  They have sent me the appointment letter also by mail, with the same clauses as in offer letter (which does not had the no-compete clause).  Agreement produced during joining was surprise.

 

HR Person is employee and authorized signatory only.  There are no statement in offer letter that i would need to sign an agreement during joining.   It is not mentioned that standing orders would apply.  Can you please send a copy of standing orders.  

Once again, thanks for your prompt replies.

Kumar Doab (FIN)     08 September 2014

Dear Madhan,


I have liked your post and treatment of the matter at your hands from the beginning.

The matter posted by you needs to be discussed further.

 

I shall elaborate and post further, and believe it that the community shall gain and benefit further..........................................but I want you to agree to pay a fee............................

Once you agree I shall certainly support you thru this thread, till logical conclusion of the matter posted in this thread by you not only for your own benefit.................................... but for the benefit of entire community of employees, fellow countrymen, citizens, readers, visitors.......................................everyone....................

Be assured that the fee shall not be any monies........................... in any kind, any personal favor, to be given to me by you.................................etc.

In fact I do not ask for contact details, do not provide it too, and do not entertain phone calls, emails..................................


Hope you will agree.

Shall we proceed further.

KumarDoab

Kumar Doab (FIN)     11 September 2014

To this date I have never asked anyone from this forum for any favor, gains................................

In today's materialistic world trust deficit is also an issue.

The topic initiated by the querist is an issue haunting plenty of employees and could have been discussed in detail and in length.


I simply wanted to ask the querist to agree to spread awareness, support the employee's unity/unions/forums...........................................as a fee...........................nothing else......................and it was made crystal clear.


Since there is no affirmation by the querist.........................................my posts in this thread are also concluded and closed. I shall not be posting further.

I am satisfied that the queries posted so far in this thread have been addressed to the satisfaction of the querist.


Beyond this a local Labor Law Consultant/Service lawyer can handle as paid consultation or FREE.


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