Offer has been rescind after signing employment contract

sathish · #1 (**permalink**) 14-12-2021, 11:54 PM

Hello All

Want to know if anyone has come across this situation.

A company offered me a job and I have accepted it. After 2 weeks, employer sent an email saying that they want to rescind the offer due to some financial reasons within their organization.

Can employer do that or is it a breach of contract ? Please share your comments on this.

Thanks,
S

#2 (**permalink**) 14-12-2021, 11:57 PM

Quote:

Originally Posted by sathish

Hello All

Want to know if anyone has come across this situation.

A company offered me a job and I have accepted it. After 2 weeks, employer sent an email saying that they want to rescind the offer due to some financial reasons within their organization.

Can employer do that or is it a breach of contract ? Please share your comments on this.

Thanks,
S

nope you havent started work

sathish · #3 (**permalink**) 15-12-2021, 12:07 AM

As I haven't started doesn't mean there is no value to the offer letter signed by employer-employee right ?

Employer has the right to rescind even 2 wees before joining date mentioned in the offer letter ?

Thanks
S

#4 (**permalink**) 15-12-2021, 12:08 AM

Even if you have started work, I can end the contract based on the termination clause (1 or 2 months notice typically) right.

Before actual work started, both side does not need to give notice

sathish · #5 (**permalink**) 15-12-2021, 12:12 AM

I'm already in notice period in my current organization, considering to join new job in 2 weeks time. Is it legally correct ? Can't I complain MOM or other govt agencies about this ?

#6 (**permalink**) 15-12-2021, 02:17 AM

Care to share is it a sme or mnc company?

#7 (**permalink**) 15-12-2021, 08:03 AM

Quote:

Originally Posted by sathish

I'm already in notice period in my current organization, considering to join new job in 2 weeks time. Is it legally correct ? Can't I complain MOM or other govt agencies about this ?

What you want MOM to do? Continue with employment and give you notice at the start of it?

Try to look for another job or see if you can go back to your current workplace. It is frustrating, but it is useless to focus on it.

#8 (**permalink**) 15-12-2021, 10:25 AM

Typically we would want this to extend both ways so we can accept a better offer elsewhere even after signing. Seems fair to me.

kim1995 · #9 (**permalink**) 15-12-2021, 10:51 AM

Quote:

Originally Posted by sathish

Hello All

Want to know if anyone has come across this situation.

A company offered me a job and I have accepted it. After 2 weeks, employer sent an email saying that they want to rescind the offer due to some financial reasons within their organization.

Can employer do that or is it a breach of contract ? Please share your comments on this.

Thanks,
S

Yes they can.

Does your contract specifically state that they will NOT rescind the offer before you start work? if no then you have not much of a case here.

Also you need to tell us if its SME or MNC... there's a big difference.

SME = no chance, no one cares, your fault for applying to a garbage tier company. If they say financial problem, you have nothing... after all it's SME.

MNC = some chance, financial issues is a huge red flag if the company has been around for decades and have millions / billions in revenue. You have somewhat of a case here if you choose to pursue.

Anyway sorry to hear what happened, this is like 1 in 100,000 chance.

sathish · #10 (**permalink**) 15-12-2021, 11:23 AM

Yes, it’s an MNC.

I understand that I need to look for other jobs. Of course, employer won’t mention in contract that they won’t rescind the offer. Complain MOM is to expose the company about their unfair practices(not sure if they did this to others before at the last moment), not to ask the employer to annul the revoked offer.

Thanks
S