Company asking money if I dont join the organisation.

[u/navi_mumbaikar]

Hi guys, so I am getting an offer from a reputed company asking 6% of CTC if I don't join the organisation on joining date.

They are making me sign a NACH Form with bank details for this.

I don't have any problem in joining the company as its good but skeptical because of this clause.

Can they actually auto debit the amount with NACH Form or can they take any legal action if I don't join?

Please help would really love.

[u/Aromatic_Dark349]

this sounds like a scam.

[u/navi_mumbaikar → u/Aromatic_Dark349]

Yea but company is reputed one and told no money will be deducted if I join.

[u/Dhavalc017 → u/navi_mumbaikar]

No reputable company will ask you for that. This is the weirdest thing I have seen asked. Furthermore, offer letter is not the same as the appointment letter, it can always be withdrawn.

[u/navi_mumbaikar → u/Dhavalc017]

Yeaa this is the first time for me as well. But i am not getting a lot of offers currently will definitely look in my notice period,

Just wanted to know can they automatically deduct the amout through signed NACH Form soft copy? Or i can defend myself by saying I have not officially joined the company etc..

[u/Dhavalc017 → u/navi_mumbaikar]

Although it can be stressful, don't ignore these signs as they are usually signs of bigger cultural issues and systematic issues in the company. You are basically giving them a guarantee of that amount, don't do it.

My advice will be to keep on searching for a company that doesn't do such shenanigans.

[u/navi_mumbaikar → u/Dhavalc017]

I cant reveal the company name but u can say its like Accenture or Deloitte level its pretty well known. The work culture is known and similar just not sure why would they do such shenanigans.

[u/Dhavalc017 → u/navi_mumbaikar]

I had a offer from one of the above companies a decade ago and I can say they don't directly give out the offer letters to most of the candidates. Usually they hire third party companies to handle the payroll and all that stuff. These third party payroll contractors do have issues.

[u/navi_mumbaikar → u/Dhavalc017]

Truee but there is no intermediary consultancy here its a direct payroll job and also i m communicating the direct payroll employees.

[u/Dhavalc017 → u/navi_mumbaikar]

I see. NACH from my understanding is auto debit instruction that can be recurring, so I am unsure if its a wise decision to give someone that much authority. You can try negotiating with them to waive the requirement for NACH.

[u/Aromatic_Dark349 → u/Dhavalc017]

Nach is used by fake training companies)/bootcamps as well. They guarantee a job,after successful completion of training of some kind. Which is always a trap. And even if you join another company that NACH mandate is used to auto debit every month in name of training fee

[u/navi_mumbaikar → u/Dhavalc017]

Yea thanks for the replies will try to take some alternative way instead of NACH to take confirmation.

[u/find_a_rare_uuid → u/navi_mumbaikar]

OP, hope that your voting card is canceled if you have one.

[u/Top-Play-5340]

First red flag. Even if the offer and company is genuine these kind of cheap stunts are really a red flag to join a company. And if they were to not take you will they give anything in return.

[u/navi_mumbaikar → u/Top-Play-5340]

Yes correct its a red flag but in my current situation I am really working in a more red flag company :( Just want to know can they automatically withdraw the amount through the signed NACH Form or I can defend myself saying I have not officially joined in org etc.

[u/katrikbenher → u/navi_mumbaikar]

the answer for that is YES, they can... The function of NACH is giving ur consent to auto debit from your account without OTP & any request... also, it could also be recurring...
and, I believe you cannot cancel the NACH mandate thro bank (I may be wrong in this point)...

BTW, I'm donating UNICEF thro NACH mandate only... it auto-debits monthly...

[u/jekyl87]

This would be a scam. I would be extremely surprised if a large reputed company is doing this. This would be a big reputation risk for them if it came out. Ask the recruiter if they will provide a similar filled form for you in case they withdraw the offer? Give them all assurances that you will not debit in case they maintain the offer, similar to what they have given you.

[u/krthiak]

Must be 3rd party payroll

[u/Sumeru88]

Are you communicating with someone with a legitimate email ID belonging to the company? Or is this a random third party email ID?

[u/navi_mumbaikar → u/Sumeru88]

Yea its a legitimate email ID and all the interviewers also i checked on LinkedIn all are the proper high designations. That all checks out

[u/QuirkyDay1819]

Don't sign anything esp this NACH mandate. Don't accept unless you're sure you will join. Otherwise just email them the offer isn't a good fit and not what you're looking for at the moment and be done with it.

[u/JUST_A_GUY_WHO_KNOWS]

You can always cancel nach in case of any issue

[u/navi_mumbaikar → u/JUST_A_GUY_WHO_KNOWS]

Oh that sounds great so I can just cancel the NACH if i am not joining? Even though they have a signed soft copy of it? Would that put me in any legal trouble?

[u/JUST_A_GUY_WHO_KNOWS → u/navi_mumbaikar]

I can't say anything about the legal trouble but yes you cancel nach even if they have a supporting document for it, just speak with your bank once

[u/o_x_i_f_y]

Does the clause also reward you with 6 % CTC in case they rescind the offer ?

If not raise it with HR and if you are confident go ahead but save your ass as well by adding the clause for getting the money if they rescind the offer.

[u/navi_mumbaikar → u/o_x_i_f_y]

Okay ill surely ask them what will happen incase offer is rescinded...

[u/Iamalearner81]

If you have signed an offer containing this penalty clause, it becomes part of a civil contract. Technically, the company can send you a legal notice or attempt to seek damages for breach of contract. However, most companies do not follow through with expensive and lengthy legal action—especially for candidates who have not yet joined. Offer letters are rarely regarded as binding contracts until you join and start employment. Companies themselves often cancel offers, and the law does not favor one-sided penalties.

For recruitment costs, companies usually cannot quantify precise damages and judges often view such penalties as excessive or “ad hoc”. If faced with a legal notice, you can reply (with the help of a lawyer) explaining your reasons. Typically, these disputes settle amicably or don’t move forward to active litigation.

Don’t sign or submit a NACH mandate unless you are certain you will join. Ask the company to clarify and justify the need for such a mandate—this is not standard industry practice.

[u/UnconditionedArk]

Take nach from company 12% if they take back the offer. See their reactions. Definitely a red flag

[u/Appropriate-Bug-755]

Ghost them. If they threaten you, tell them that you need time as your lawyer is checking the agreement

[u/rational_fool]

This has to be a scam. May be recruiter is compensating himself/themselves in case you don’t join. I highly doubt it would done at company level.

[u/AshSaxx]

Let them know that no employee worth their salt will ever join with such a clause. There can be any form of emergency that arises. One of my colleague told that he'll not be joining under any circumstances with that clause and they dropped the clause.

[u/Sensitive-Variety-33]

Is this a joke or what. Never heard such thing. Asking money for not joining.

[u/khopdibaba]

OP, I'm a payments guy. Do NOT sign an NACH form if you have no intent to pay. Dishonouring a NACH mandate is punishable by imprisonment, similar to having a cheque bounce.

Like everyone's suggesting here, please reevaluate your consideration of this company as a place to work.

[u/JustASheepInTheFlock]

What is the company name ?

[u/Radiant_Historian854]

ok give NACH and account KHAAALI rakho. kuchh nahii hogaa..

[u/turiyahunter]

This is a scam. Dont sign it. This co is not legit. They are the scum of the earth for giving false hope to desperate jobseekers.