A recent Employment Appeal Tribunal (EAT) decision in Kankanalapalli v Loesche Energy Systems Ltd found that withdrawal of a conditional job offer amounted to a breach of contract, even though the employee had not yet started work.
This recent case is a timely reminder for employers that withdrawing a job offer is not without risk. If employers intend for certain conditions to be met before a binding contract is formed, this should be expressly stated.
The claimant, Mr Kankanalapalli was offered a role as a project manager, which was expressed to be subject to satisfactory references, a right to work check and successful completion of a six-month probationary period. The offer letter set out the key terms (to include the salary and a start date) but it was silent in relation to any notice period. The employer also agreed to contribute towards relocation costs.
Mr Kankanalapalli accepted the offer over email and completed the new-starter paperwork, including providing referee details and the right to work documents.
A few weeks later, the employer wrote to Mr Kankanalapalli withdrawing the offer due to delays in the project.
Mr Kankanalapalli brought a claim for breach of contract, citing the withdrawal of the offer and failure to pay any notice pay. The Employment Tribunal dismissed the claim, taking the view that the offer was expressed to be conditional, and the employer had not yet received references or completed the right to work checks (which required...
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