Letter of Intent
Law says mere intention to do something, is not binding on the parties involved. Implying that, the agreement is not enforceable in the court of law in the event of eventuality, say if the candidate does not join or if the employer on or before the date of joining dissolves the said position.
Therefore, letter of Intent is basically a document illustrating the willingness of the employer to hire the candidate but may or may not turn into successful hiring.This is generally practised by the firms who are having watertight and fierce competitors in the market.Generally, it does not carry any compensation/Employment data.
Again going by the contract Act, In the offer, there is definite intention to enter into a legally binding relationship. An offer involves the expression of interest by one party to the other, to do or not to do something (Excluding acts of impossible nature or acts which are void ab intio ).In an offer letter the, term of the offer is unambiguous and definite, with the intention to create a legal relationship.
This is basically, a form of contract between the parties involved viz. employer & employee .as such it involves offer + acceptance + enforceability by the law. (Hence, it qualifies to be a contract )
An employment agreement is an agreement between the employer and the employee about the terms of employment. If you have an employment contract, and your employer breaks it, you may be entitled to damages. If one party breaches a contract, the other party can sue for damages to compensate for the financial harm caused by the breach.
In the employment context, this often boils down to salary, benefits, and other amounts, an employee either doesn't receive or has to pay because the employer ended the employment relationship in violation of the contract's terms. A contract is breached or broken when either party doesn't live up to its agreement.
For example, "if you have an employment contract promising that you will be paid an annual salary of Rs.50,000, but your employer decides to start you at a lower amount that would be a breach of contract. Similarly, if you have a two-year contract stating that you may be fired only for good cause during the contract term, and you leave the job without any former notice that would be a breach of contract, and you will be liable to damages" .
Since the offer letter is legally binding; it will help nip that complaint in the bud.
Bottom line: Hire right the first time. It’s not a process that you want to repeat more than once. Nothing can be more beneficial to the success and enjoyment of your practice than to have the right staff who do the right things at the right time.
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