They are free to seek compensatory damages. 
 Just like you are free to show a middle finger and laugh in their stupid face lol.

Founder

What non sense is this? Never think about joining this company. This company must have a hell of HR policies.

Software Engineer

Add a clause in offer letter that they have to keep you employed for at least 1 year 🤣

Corporate Strategist

Investor

Run away from this firm. Its a big red flag

Recruiter

They are free to try. Don’t worry about it. If they were to revoke your offer one day before you were to join, citing “management reasons”, would they offer you any sort of compensation? Works both ways. Don’t fret.

Analytics Manager

Ask them to print out the offer letter, roll it, and shove it up their a**

Don't sign the offer letter then, no problem if it's only an offer letter and no written acknowledgement is made, anyway it's dumb as shit

Chartered Accountant

Even if it's legal(not sure) who is really gonna enforce? Going to court could be long and expensive. 
 Likely just added as deterrent

The words candidate and executive have typos, and maybe more. Feels like some uncle screaming at me after reading just half of it.

Program Manager

Product Head

Ideally they can't enforce it. But you should name and shame the company regardless

Hi, A startup has a clause in offer letter that if candidate does not joined. He/She needs to pay the penalty. Can they legally do that action

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Penalty clause in offer letter if not joined