What Happens If New Hire or Employer Change Their Mind After New Job Offered And Accepted?

WHAT HAPPENS IF NEW HIRE OR EMPLOYER CHANGE THEIR MIND AFTER NEW JOB OFFERED AND ACCEPTED?

IS THERE A BINDING LEGAL AGREEMENT?

Once an employer has made an offer of employment (usually with an offer letter) and this has been accepted by the new hire employee there will usually be a binding legal agreement this despite the fact that the job is yet to start, no work has yet been done and no money has yet been paid.

NOTICE?

If the employer or the employee wants to withdraw from the employment then contractual notice will usually be required.  If contractual notice is given and that notice runs out before the employment is due to start there can be no claim for giving such notice and nothing is payable.

WHAT HAPPENS WHEN THE NOTICE IS GIVEN BUT WILL EXPIRE AFTER THE START DATE OF THE EMPLOYMENT?

Employee giving notice ….

If the employee refuses to start work on the commencement date with notice still to run, they are in breach of contract.  The employer could sue the employee for breach of contract for any loss resulting from the start date to when the notice expires.  There may be no easily quantifiable loss.  The more senior or specialist the hire and the longer the period of notice still to run from the start date the more likely that there could be substantial quantifiable loss.

Employer giving notice…..

If the employer refuses to allow the employee to start work on the start date, the employer will be in breach of contract.  The loss suffered by the employee will be easily quantifiable being salary and any contractual incentives due (although these may be harder to prove/claim) that would have been payable during the balance of the notice.  If the employer has a contractual PILON power reserved in an employment contract this could be exercised thereby terminating the employment by payment of the balance of the notice due after the start date.  The only possible other claim by the employee would be if discrimination or blacklisting were a provable factor in the termination.


This article/blog is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.

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