withdrawing job offers + UK employment law.

Withdrawing job offers just got riskier: what employers need to know

A recent Employment Appeal Tribunal (EAT) decision has given employers something new to think about when it comesto withdrawing job offers. For businesses seeking employment law advice for employers, this is a timely reminder that small details can carry real risk.

In Kankanalapalli v Loesche Energy Systems Ltd, a candidate accepted a project manager role, started onboarding, and even began preparing to relocate. Shortly before their start date, the employer withdrew the job offer due to project delays.

The legal consequences of that decision are worth paying close attention to.

The employer had already sent over a contract of employment, which hadn’t been signed. They assumed this meant there was no binding contract in place, especially as the offer was labelled a “conditional job offer”.

Those conditions were:

• satisfactory references
• confirmation of the right to work in the UK
• completion of a probationary period

The thinking? No conditions met = no contract.

The EAT didn’t agree.

When is an employment contract legally binding?

The Tribunal found that a binding employment contract had been created as soon as the offer was accepted even though:

• the contract hadn’t been signed, and
• the conditions hadn’t yet been satisfied

This is a key point for employers asking: “when is an employment contract legally binding in the UK?”

The EAT’s view was that these were not conditions preventing the contract from existing. Instead, they were conditions that could bring the contract to an end later.

In other words, the contract already existed. It just had some built-in exit routes.

The costly bit: notice periods before employment starts

Here’s where things got expensive.

The contract didn’t include an express notice provision covering this scenario. So the law implied a term requiring “reasonable notice.”

For employers wondering about notice periods before employment starts, this is where risk can creep in.

On the facts, the EAT decided that three months’ notice was reasonable.

Result: the employer had to pay three months’ salary after withdrawing the offer.

Why this matters for employers

Many employers assume that a conditional job offer in the UK can be withdrawn freely before the start date, either:

• without paying notice at all, or
• only paying the shorter probationary notice period

This case shows that the position is not that straightforward.

For those asking “can an employer withdraw a job offer after acceptance?” or “what happens if a job offer is withdrawn?”, the answer depends entirely on what was agreed in writing.

As ever, it comes down to what’s actually been said (or not said) between the parties in writing.

What should employers do now?

If you’re hiring, whether you’re a scaling business or looking for employment law for startups, it’s worth tightening things up:

• Review your offer letters and contract templates carefully
• Consider whether each offer should be conditional on checks like references, right to work, qualifications or background screening
• If you want those conditions to be satisfied before a contract is formed, make this explicit in your documentation
• Include clear notice provisions covering the period before employment starts, so there’s no ambiguity
• Balance flexibility with candidate experience, overly one-sided terms can be off-putting and may impact hiring

The takeaway

This is a good example of how small details in documentation can have significant legal and financial consequences.

If it’s been a while since you sense-checked your recruitment documents or you’re unsure about the risks of withdrawing a job offer, now is a good time to revisit things.

If you’re looking for employment lawyer support or tailored employment law advice for employers, we’re always happy to help - contact us today.

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