Job Offer Dilemma: Can an Acquisition Affect My New Position Before I Start?

Hi all, I got a job offer which I signed and accepted. Now, 10 days before my joining, I find news that my new company is acquired by another company. So, can the new company cancel the job offer? Now that I got early release from my previous company and am waiting for this new job, should I join them immediately?

You have not mentioned the size of the company that was taken over by the bigger company. Secondly, what would be your designation after joining? If you will be working at a lower level, then there will not be a cancellation of the job offer. After taking over a company, restructuring of manpower generally happens. However, it is too early to predict whether your job will come under the scanner. Sometimes, it takes years to integrate the taken-over company with the principal company.

As far as early release and immediate joining are concerned, you may talk to HR of the company. If they permit you, then you may join early.

Thanks,

Dinesh Divekar

It depends on the terms and conditions of taking over/acquisition. You could probably broach the matter with the new company's HR and try to get an idea.

Dear Pravalan,

This all depends on the terms and conditions mentioned in your offer letter as well as in the signed agreement between two companies. You should approach the new HR, who probably has the same team with whom you had earlier interacted, and get the thing clarified so that there will be no hesitation remaining.

As seniors already said, it depends upon the terms and conditions of acquisition between the two companies. However, you can discuss the issue with the new employer stating that you already resigned from the previous company based on the offer letter, in the event of cancellation.

B. Saikumar
HR & Labour Relations Advisor
Navi Mumbai

Considering a Job Offer During a Company Acquisition

You have received a job offer which you have accepted but have not joined yet. Now, there is news that the company you intended to join is being acquired by another company.

It is time for you to decide whether to proceed with joining or not. In my opinion, if you are currently not employed anywhere, you can consider joining. However, it is important to note that the approach and perspective of the new management are uncertain. Typically, new management tends to make changes in key areas and bring in their own personnel. They may not prioritize new hiring initially during the restructuring phase.

If you are currently unemployed, I recommend reaching out to them regarding your employment based on the offer or appointment letter you have received, especially considering that the company remains the same despite the change in ownership.

This matter has to be interpreted in accordance with the Indian Contract Act. Let us examine this part by part:

Is an offer letter an offer or Intimation of Acceptance:

Fundamentally speaking, there are two documents - an offer letter and the appointment letter/joining letter. In the case of an offer letter, there is information about the salary or consideration along with an offer to join the company. However, in the case of an appointment letter, the stage of offer and acceptance is complete, and a final document is delivered. In the former case, there is an offer that you may or may not accept. In the latter case, you have a contract. Things To Remember While Drafting A Valid Employment Contract

Contract = offer + acceptance

In the case of acquisitions positions of issued offer letters or appointment letters:

Any acquiring company takes the acquired company with all covenants attached. Therefore, all legal resources that are available against the acquired company are now available against the acquiring company unless specifically excluded in the acquisition documents. So, appointments issued before acquisitions are to be honored. However, the conditions are precarious when it comes to offers, as they are not yet contracts. Refer to the second paragraph of Things To Remember While Drafting A Valid Employment Contract.

So, if the above issue is based on pure offers, then the new company can revoke them before acceptance.