Employer asks to serve notice period on rejecting offer letter.
I signed an offer but later due to personal reasons, rejected it (1 week from date of joining) by informing the employer in a very mild manner. However, the employer has issued legal notice, saying that I have to either: A. Join the organization on said date and then resign and serve 3 month notice period; or B. Pay 3 month salary in lieu of notice period within 3 days. I read the offer letter, there is no mention of penalty. Only in the Termination clause it is mentioned that either party can terminate contract by giving a notice of 3 months or 3 months salary in lieu of notice period.
You may not worry, the company cannot take action against you nor they can file case against you.
Since you have not executed any appointment letter so you are not bound by any terms of the company.
Hence, you are not required to pay penalty
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