Job Offer Canceled Due to COVID-19: What Can You Do After Serving Notice?

One of my friends received an offer from a company in February 2020 and, accordingly, he resigned from his current company. He was supposed to join the new company on March 19, 2020, but the new company postponed his joining due to the COVID-19 pandemic. They sent him a revised offer on March 19, 2020, stating he could join them on or before April 20, 2020. He replied that he would be joining on April 15, 2020. However, on April 9, 2020, he received an email from the new employer stating that his offer had been withdrawn due to the global scenario.

Is it legal?

What should the candidate do now as he has already served the notice period in the previous organization and has no other offer in hand? What actions can the candidate take against this organization?

Dear Pallavi, Misfortune has indeed struck your friend. The situation has left your friend in a lurch.

Understanding Employment Contracts

An appointment letter is a contract between the employer and the employee under the provisions of the Indian Contract Act, 1872. However, the offer letter may not constitute a contract. It may not specify whether the offer of employment is revocable or not, as this detail may not be mentioned. It becomes a contract only if the conditions for revoking the offer of employment are explicitly stated.

Reviewing Offer Letter Conditions

Therefore, it is advisable to review the conditions outlined in the offer letter. If the conditions for cancellation are clearly mentioned, then nothing can be done per se.

Possible Actions

Nevertheless, your friend may consider writing a letter to the Managing Director of the future company, pleading to proceed with the filling of the vacancy as planned. The outcome of your friend's request is yet to be determined.

Thanks,

Dinesh Divekar

Understanding Contract Completion

A contract is complete when there is an offer and acceptance. Here, there is an offer and acceptance, which makes a contract complete. But going beyond the basics of a contract—offer and acceptance—as rightly mentioned above by a learned member, you will have to read the offer letter in full.

Considerations in the Offer Letter

What are the conditions in the offer letter? Where is the company based? Your post appears to be from Taiwan. Is the company based in Taiwan, and is the offer in Taiwan? Then Taiwanese laws will come into play.

Handling Offer Withdrawal

Regardless of the legalities of the matter, the candidate can ask them to reconsider the cancellation and ask for a longer date, by which time COVID would be conquered (it will be). In the meantime, look around, add to skills by online courses, etc. A legal battle would be of no major consequence, presently. All the best.

Understanding the Current Situation in the Software Industry

This situation is common nowadays, especially in the software industry. While this instance may be due to the lockdown situation, companies often take such actions for various reasons. Sometimes, companies release extra offers to prevent and deal with last-minute drop-out cases as a backup resource. Other times, it is due to slow business, ramp-downs, or budget constraints.

Legal and Non-Legal Options

Companies typically include only favorable terms and conditions in their contracts, leaving very few legal options available for your friend at the moment. It is important to review the details of the offer letter first.

Non-Legal Solutions

- He can write an email to the company's Head of HR and MD/CEO, informing them of his current jobless situation during this pandemic. The email should be polite but convey a strong message about his current situation. Writing such an email is an art, so it is advisable to seek advice and draft a strong email. Feel free to reach out to me for guidance if you need suggestions while preparing the draft email.
- Social media is a platform where your friend can connect with the company's MD or senior management, as he may not have their personal email IDs right now.

Additional Recommendations

As mentioned by Nathroa, I agree with the following points as the best-suited options for him right now:
- He can ask for a future date of joining if there is no position available currently, as it sends a positive message to the employer.
- Your friend may opt for various online courses during this lockdown period.

In my view, if a company is not stable due to a one or two-month lockdown, it may not be the right company to target for future employment. This is a strong message to your friend, advising him to look for a stable company for better future prospects.