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Is a misrepresentation based employment contract valid?


09-Aug-2023 (In Labour & Service Law)
I was hired by a company as a fulltime employee. After a month the company informed me that their payroll was not setup and that they'll pay as soon as it was setup. They offered to pay me as a freelancer which I refused. They had not informed me that their payroll was not setup before I joined. Does this constitute misrepresentation of information and breach of trust? Is the employment agreement valid?
Answers (2)

Answer #1
973 votes
If it was mentioned in the agreement that you will be on payroll then in your case it is violation of contract and you can take legal recourse on account of misrepresentation of facts and breach of trust.

Answer #2
796 votes
Do you have in writing the benefits which would accrue to you in case you are considered a full time employee? If yes, then that document requires to be looked into.
In any case, misrepresentation is not permitted in law. You have both criminal and civil options available at your disposal. You are entitled to receive payment for the work you have carried out.

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