I accepted a job offer but had to decline it due to personal reasons a week before my start date. I informed the company politely, but they’ve sent a legal notice demanding I either join and then resign with a 3-month notice period, or pay 3 months’ salary. My offer letter doesn’t mention any penalty, only that either party can terminate the contract with a 3-month notice or equivalent payment. Is this legal?

The company’s demand is likely not legal. Indian law generally requires a valid contract with a clear penalty clause for non-joining to be enforced. As your offer letter only mentions notice periods for termination, the company cannot legally impose a 3-month penalty for non-joining. You can respond by stating your offer letter doesn’t specify any penalty for non-joining and politely reiterate your inability to join.