Even without passing of any monetary consideration a written agreement is valid and binding on both the parties. Once an agreement is signed with B, any backing out will amount to violation of agreement leading to consequences of breach agreement for the amount of agreed compensation, if any. Even without any penal clause for compensation, the aggrieved party can seek unliquidated damages.
Employment agreement letter
Dear Sir/Madam, I have been applying for jobs in universities recently. I had interviewed for university A and B. My preferred university is university A, and less preferred is university B. For university B, the process moved really fast, and I was offered job, while my application was still under process at A. As I had no options at that time, I asked for more time from B. They gave me a three weeks. However, even within that time frame A could not complete its procedures because of the large number of applications. So I had to informally accept the offer from B. Now B has sent me an employment agreement letter, and asked me sign and send it back to them. The employment effective date is quoted as 1st January 2023. However, it is likely that I will get some update from A by October (the outcome could be positive or negative). I wanted to ask if I can sign the employment agreement with B now, and back out (i.e. not join the university and inform them of my decision) in the event my application at A is successful. Just to note I have not received any monetary compensation from B.
Asked 3 years ago in Labour
7 Answers
Will the agreement be valid from the effective date for the beginning of the agreement (i.e. January 2023) or the date the agreement is signed? What would be the legally correct step for me to do in this case?
Asked 3 years ago
You will be recognised as an employee from the date of your joining the firm and not as on the date of agreement between you and the employer.
The conditions of employment offer/agreement letter will come into effect only on the date of your reporting to the duty and not before that.
Since there is no monetary benefits paid to you in the meantime, you can always intimate your decision of unwillingness to join them.
The employer cannot sue you for breach of contract even before you had joined them, in case any such action taken you may challenge the same properly as per law.
The agreement will be effective from the date it is mentioned there and not on the date of signing the agreement.
This agreement signed before the date of joining is just a formality.
Hence in case of any action taken by employer based on the agreement you can challenge the same since your employment has not commenced as on the date of intimating your decision to join them.
As per the Section 27 of the IndianContract Act 1872, any terms and conditions of an agreement which directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid under the Indian law, The employee has right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time.
You can resign from university B if you get accepted at your desired place with the due process as accordingly the contract Act.
The execution date is the day both parties sign the contract. It’s when both parties agree to terms and conditions as the contract outlines. However, this isn’t necessarily the same day the contract comes into effect. The day when the contract becomes effective is known as the effective date (or contract effective date), which may be different from the execution date. This date cannot precede the execution date, meaning a contract cannot be in effect until after all parties sign it. By signing the contract, all parties are stating that they agree upon the effective date. So dear client your agreement will be valid from the effective date i.e. January 2023.
It is necessary to peruse terms of agreement to advice
dont sign the agreement if you don’t intend to join
Agreement is valid from date mentioned in agreement
Yes it will be valid
