• Offer rescinded after acceptance

I was working under a 1 year contract with my employer. Remuneration was fixed at 70% fixed and 30% variable based on performance of the project (items listed out in contract). 

On the day, the contract was to end (Day T). The week before this, I was following up regarding extension as well as performance related payment part. 

On July 4th morning, i received a offer of three month extension of the contract, with the terms being the same as the earlier contract. However there was no mention of the performance pay. I was asked to sign and return the letter.

Since there was no clarity on the performance pay as well as the exact amount of salary (70%, or full100%), I asked for clarity on these queries along with a request to work from my hometown in Karnataka as the work location mentioned was out of state and badly affected by COVID 19.

Company showed reluctance to pay the performance pay but with difficulty I got a verbal confirmation on Day T+2. On Day T+5 I sent an email confirmation accepting the extension offer and asking for more clarity on the payment to be received. 

In response, the employer sent a mail recalling the extension offer, stating the reason to be "placing more conditions to accept our offer". However no conditions had been placed, only a request for clarification. 

Query

Since offer was recalled unilaterally after my acceptance of the same, what recourse do i have legally
Asked 5 years ago in Labour

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12 Answers

You can discontinue the contract on the basis of payment/consideration clause not mentioned.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1. Unilaterally the offer letter can't be withdrawn, specifically so when you have accepted the offer of employment.

2.  Send an email to the Competent Authority to reconsider the offer made to you.

3.   Explain in detail that you only wanted clarification on certain conditions in the offer letter and that does not mean that you are disobeying to comply with certain clauses in it.

4.   If you don't belong to Management category, you can approach the Labour Commissioner of the jurisdiction, as also knocking the doors of Labour Court.

5.  If all the above steps do not workout, send a legal notice to get back the offer of employment from the employer.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

Once offer has been accepted it amounts to binding contract 

 

you can sue company for damages 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Dear Sir,

The employer’s offer was accepted by you unconditionally for next 3 months period so he can to recall his earlier offer after your acceptance. You may get issue a legal notice and also say that he has to visit Bengaluru courts as you are also claiming Rs..3 lacs towards your mental torture and loss of other opportunities. Share more details.

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

You can seek relief from labour court in the same. You can seek direction from the court to consider your contract on earlier conditions. You can take a ground that the said contract is illegaly recalled

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Beside three months all remuneration recover performance bonus from them as this is nothing but cheating so file recovery of dues application before the competent authority.

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

Recourse will be lengthy and may not bring expected result. Till the extension period not started, it can be withdrawn. Maximum you can claim performance sheet and variable pay if PS is positive. And since extension is offered that this can be deduce that your performance was satisfactory.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

The recall of the offer unilaterally is invalid and can be challenged in court of law on the basis of acceptance given by you. 

If you are prepared to wage a legal battle then you can resort to legal action by first issuing a legal notice to the employer stating that his actions are unjustified and illegal,  instruct him to stick to his commitment or to face an appropriate case before a court competent. 

You can discuss with your advocate and proceed as suggested. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

- The job offer does not mean that the employment relationship between the employee and the employer has started unless there is a written proof which clarifies that the offer has already been effective and the burden of proof shall be borne by the party who is claiming starting the employment relationship.

- Further, It is only an offer, after signing; it becomes unconditional acceptance of an offer in accordance with the general rules of contracts,

- Hence, if an employee refrains from joining the work with the employer or if the employer evades letting the employee join the company, in this case, the party who breaches the obligation has to compensate the other party for damages caused or loss of profits.

- Since, you have signed the offer letter issued by the employer , then the employer cannot rescind the same on the subject of clarification of payment etc, and such acts are against the rule of employment, and Labour law.

- You should issue a notice to the said employer for reinstate your job immediately .

- Otherwise, you can approach court for the same and to seek compensation as well. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Serve them with a legal notice and than file a specific performance suit against them for having the extension 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Please state your designation and package CTC which is necessary to decide authorities, court and their jurisdiction to ensure the acceptance of grievance and granting  of relief. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Dear Sir/Madam,

You are suggested to serve a legal notice and ask for the compensation of damages and mental agony suffered by them.

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

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