• Is a company liable to pay the salary mentioned in offer letter

The situation is interesting so please don't judge me based on my question.

I am working for a US based company who contracts a HR intermediary to pay my salary. The HR company takes ~30% cut for this.

Recently the US company asked to make an adjustment to my salary. The HR intermediary sent me an offer letter. However, in the offer letter they mentioned it as increase and put the salary as 12x of the salary US company wants me to pay (12x since they made yearly salary as monthly salary).

After receiving the signed offer letter, I sent it back to them, asking them to re-check the numbers. Almost 3 weeks later, they sent it back to me, telling that they have confirmed that this is correct numbers.

My question is: If I sign the letter and send them back, are they liable to pay me the amount they mentioned in the offer letter ? Or is the offer letter a non-binding document and the company can pay me as they deem fit ? (The money I am talking is significant amount so even couple months salary will make a huge difference ).
Asked 5 years ago in Labour

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16 Answers

Dear Client,

In offer letter CTC is mentioned. They can only deduct some statuary deduction like PF, ESI, Welfare Fund from the mentioned CTC. Finally, your CTC mentioned in the offer letter should tally the the CTC mentioned in the Salary Slip. 

Jaswant Singh
Advocate, Gurugram
929 Answers
2 Consultations

4.8 on 5.0

Offer Letter has to be followed so sign and send back.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

company is bound to pay the amount mentioned in appointment letter 

 

2) company cannot pay you as it pleases 

Ajay Sethi
Advocate, Mumbai
94733 Answers
7538 Consultations

5.0 on 5.0

An offer letter is both a policy document and a legal contract. As per Indian Contract Act, a legally valid contract should be legally enforceable in nature and spirit. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Yes.

Pay acc. to offer letter.

 

 

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

If that offer letter was made between some arrangements with you guys then you can't claim it if you claim the same they will cancel you service contract.  For claiming it also you need to file the claim in that country

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

1. yes they are liable to pay the said amount. 

2. That is the essence of the offer letter that the company and the employee both agree to the conditions as stipulated therein. 

 

Regard s

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

Yes they have to pay you the agreed amount. The offer letter can be binding agreement and it can be admitted in the court. Yes you can contest based on same.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

You need to interpret the same as per the law of the state in which the company is situated. I feel you have a standing.  But it's not ethical on your part to do that

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

Yes the agreement on plane piece of paper signed by both parties is a valid document.

See they can argue still you can contest based on the agreed amount. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Yes, it is a valid document.

company can claim the same to be a typographical error but nonetheless you may file the case since they are contractually obliged

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

It is a valid document 

 

2) company cannot refuse to pay salary agreed upon on grounds that it is not justified by work profile 

Ajay Sethi
Advocate, Mumbai
94733 Answers
7538 Consultations

5.0 on 5.0

If the agreement of employment is done between the party and you have performed the giving job the company is liable to pay your salary and you may file a civil suit in this regard to recover the amount including the legal charges, compensation and interest.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

This is service(Not a commercial one) contract so no need of Notary and stamp paper who so ever has signed are liable and responsible in future. no matter what has been written has to be followed so don't confuse and go ahead.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

In actual, agreement not duly executed but adopted practice in off shore agreements.

Since company is settled out of India, so if any dispute arise, legal remedy may not enforce. All make sure, not make any payment to them. 

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Yes the company is liable to pay the salary mention in the offer letter if it is duly signed and sent to them. 

The offer letter is a binding document to both employer and employees and company cannot breach the clause according to its convenience.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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