Navigating Offer Withdrawal: Is It Legal to Revoke After Missed Joining Dates?

Hi All, I am working for a German-based MNC company as an HR executive. We are a small company with 50 employees. Recently, we released a job offer letter for an engineer in February 2020, mentioning the joining date would be on or before 6th April 2020. He accepted the offer but stated his joining date would be 15th April 2020. We agreed to the revised joining date verbally and initiated the background verification process. However, I have not released any revised offer letter for his new joining date.

Unfortunately, due to the COVID-19 lockdown and economic crisis, our business has dropped drastically, and our parent company has frozen all new hirings and joinings. We tried to get approval for this offered position but had no luck.

On 14th April, we received an email from the candidate, mentioning that his relieving has not been completed in his present company and he will join our company once he gets relieved from the previous company.

On 14th April 2020, I called the candidate and explained our company's present scenario and our parent company's decision on hiring, informing him that due to this, we are revoking the offer. However, we will consider his job offer if we get approval for his position. I also suggested he explore the option of continuing his employment in his present company since he had not been relieved from his current position.

On 17th April, I reiterated the same information in an email to him, stating that we would consider his job offer once we receive approval from our headquarters.

The candidate wrote again via email on 28th April 2020, asking us to reconsider his offer. As we had not received approval from our parent company, we were unable to accommodate him. When I replied, I expressed our regret, stating that we were not able to offer him the job and that the initial offer had been canceled.

Now, he has returned, claiming that this action is illegal and that he would like to discuss the matter with our top management, threatening to issue a legal notice.

Legal Obligations and Offer Validity

I seek your advice on the following points:

1. We have only issued an offer letter, not an appointment letter. In this case, are we legally obligated to provide employment to him?

2. In the offer letter, we stated the joining date would be on or before 4th April 2020, but he accepted the offer with a date of joining on 15th April 2020. He missed both joining dates. Can I argue that the offer is no longer valid since he missed both joining dates?

Please advise accordingly.

Job Offer Letter vs. Appointment Offer

A job offer letter is not a legal document, but an appointment offer is certainly a valid document. Based on your offer, the candidate submitted his resignation to his current employer. Subsequently, he informed your company that his relieving was not completed, and hence he requires more time. As he was not relieved at that point in time, he could not join, and hence his current position is "neither here nor there."

Ethical Considerations and Company Response

Ethically speaking, your company should provide him an opportunity. You can inform your top management and, if necessary, arrange a meeting with him to listen to his situation. You can also assertively inform him about your company's plan due to COVID-19. Let's see what will happen.

Comments on Job Offer Withdrawal

1. You issued an offer letter, but the candidate, instead of accepting it, made a counteroffer, deferring the joining date. There is no written communication from your side accepting the changed date. However, the candidate did not join even on that date. Then you retracted the job offer, although the reason was the change in the job scenario.

You are not legally wrong in withdrawing the offer as the candidate did not accept your offer as such, and secondly, he did not act as per his revised offer. So his offer to join you on a later date is not valid and binding on you.

2. An offer of appointment made can be withdrawn later if the circumstances drastically change. Now, it is accepted that the onset of Corona is a 'Force Majeure' condition like a natural calamity, and any action taken as a consequence thereof gives ample excuse to retract the promise or offer made. So you need not worry, even if he goes for litigation on the matter.

My comments are as follows:

1. You issued an offer letter; however, the candidate, instead of accepting it, made a counteroffer, deferring the joining date. There is no written communication from your side accepting the changed date. The candidate did not join even on that date. Subsequently, you retracted the job offer, citing the change in the job scenario as the reason.

Legally, you are not wrong in withdrawing the offer as the candidate neither accepted your initial offer nor acted upon the revised offer. Therefore, the candidate's offer to join you on a later date is not valid and binding on you.

2. An offer of appointment can be withdrawn if the circumstances significantly change. Given the current situation with the onset of COVID-19 considered a 'Force Majeure' condition akin to a natural calamity, any consequent actions provide reasonable grounds to retract the promise or offer made. You have already communicated to the candidate to explore other available alternatives. Therefore, there is no need to worry even if the candidate decides to pursue litigation in this matter.