Job Offer Withdrawn Last Minute: Should I Consider Legal Action for Compensation?

I accepted the offer letter from an organization and, based on this offer, I resigned from my existing organization. However, just one day before the joining date, they sent me an email stating that "we can't hire you." Now I am jobless and can't return to my previous organization.

The new company is offering me compensation of only one month, which I believe is not justified, considering the hiring freeze in most IT organizations until February-March. I requested them to reconsider the compensation package, but they refused.

Please suggest whether I should take legal action against the organization.

It's a very unfortunate thing, and sadly, there is not much you can do here. The company has the same right to reject an offer until joining as you have. As correctly pointed out by Mr. Yadav, please start looking for another opportunity at the earliest.

Legal and Ethical Considerations in Job Offer Revocation

Don't you think it's unethical and even illegal to revoke a job offer once it's accepted? According to the law, a company doesn't have the right to revoke an offer once it has been accepted by the candidate, as it becomes a contract between both parties with respective consideration. If they have done so, the candidate is entitled to compensation of at least three months of the offered salary.

I discussed this with my lawyer and have decided to take legal action against the company.

Thanks for your support and advice.

Dear BALA,

Litigation can be filed, yet there is no restriction to anyone in the country. I do not foresee any grounds for three months' salary entitlement of compensation as mentioned by you in the second post. Anyway, we give our opinion based on limited inputs; that should never restrict or stop anyone from fighting his point.

Regards,

Legal Recourse for Breach of Employment Offer

No doubt, this is very unethical and unprofessional on the part of the employer. Under labor laws, remedies are available to the workers of the organization, but I doubt whether you will be termed as a worker.

I know that an offer for an appointment is a form of contract between two parties, which has remedies under the Indian Contract Act. The provisions under the Act are as follows:

1. When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.

2. The person making the proposal is called the "promisor," and the person accepting the proposal is called the "promisee."

The employer has offered you a proposal, which you have accepted. As such, the employer is duty-bound to fulfill the conditions of the offer. Failing to do so would be considered a breach of contract.

They have assessed the actual consequences. It is for this reason that they are offering you compensation. If you are not satisfied with the amount of compensation, you may need to approach a court of law, which is a time-consuming process and involves expenditure.

I would advise you to accept the compensation and focus your attention on finding another suitable job.

Regards, BS Kalsi

You have every ground to proceed legally against the company and seek damages, especially for the loss of your employment. That loss cannot be covered by a mere 1-3 months' salary.

However, if you wish to proceed legally, you should take each and every step carefully with the assistance of a lawyer. It can be time-consuming as well as expensive.

If you don't want to, you can forget and move on...