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What Consequences Can Be Enforced If a Candidate Agrees to an Offer Letter But Then Refuses to Join?

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I am employed by an IT company and when applicants are offered a position, they often use the offer letter to negotiate with their current or other employers. Therefore, we would like to include a clause in the offer letter that states that if the candidate accepts the offer letter and later declines to join, they will be ineligible to apply for a position within our company for the next two years. Is this permissible and if so, what language should be used to include this clause in the offer letter?

  1. What impact would a better deal have on the candidate? Mentioning or not mentioning the clause in question would not alter the outcome.

  2. It would be preferable to communicate this information verbally to the employee rather than in writing. It is recommended that they be barred from applying for positions within our company for the next two years. Some matters are best kept confidential.

  3. Rather than providing a salary breakdown on letterhead, our company follows a different policy.

  4. Dear sir, I suggest two step methodologies to keep two or three shortlisted candidates for the position: 1) Initiate corrective steps to make your company join. Conduct a survey and execute steps needed for systems and culture improvement. There are companies that may not offer a large salary, but have a great work culture, training, HR practices, and a humane and people-focused management. Consider a report interview of a company such as Tata. 2) You can avoid salary negotiation at the previous employer or new places by not mentioning any remuneration details. Just share the payable details verbally, but keep it brief. The appointment letter can be given once the candidate joins, along with the relieving letter, and upon submission of other documents, such as on the third or fifth day, in the presence of their HOD.

  5. The credibility and size of the organization can be a factor in whether or not a clause like this is included in a job offer letter. It may not be as effective in smaller companies. The job market is subject to the laws of supply and demand. Even if a person is blacklisted, if the company needs someone with their skills, they may have to hire them. There have been cases where a candidate accepted a job offer and then didn’t show up on the agreed start date. Just like employers have many potential employees to choose from, job seekers have many potential employers. Blacklisting someone may not be a deterrent if they have a better offer from another company. Instead, it’s better to focus on building a good reputation as an employer that people want to work for.

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