Job offer withdrawn - should I make a fuss?

[Biglittleliars]

I accepted a new job offer over a month ago, and signed a new contract with a start date this month. The new employer has called me today to let me know that they are rescinding the offer as they can no longer afford to have the role. I believe they are making redundancies too.

I didn’t think I would be able to do anything in the situation however now i believe I could sue for breach of contract, given I resigned from a good job where I had been for a decent length of time.

Would you make a fuss? AIBU to do so or is it a waste of energy?

There is really no point. Just get job hunting.

Has the position you are leaving been recruited yet?

I am no lawyer but I assume your contract had a notice period in it? If that is a month then you could maybe ask for a paid month notice, ie the period from your start date up to a month from today.

Good luck with the job hunt, it's an employee's market at the moment.

As soon as you accepted the job offer, you and the new employer formed a basic legal contract between you - reinforced by the fact that you have now signed the contract of employment and been given a start date. If the offer has now been withdrawn, your employer has breached the contract and it’s entirely possible for you to sue you as a result - you have to prove you have suffered loss - for example as in your case because you have left your previous job to take up the new offer.

If a court decides that your contract was breached, it can order your employer to pay you damages or compensation - usually limited to the wages you would have earned during the contractual notice period under the new contract, but in this case they would have to consider loss of earnings because you resigned your previous post to take up the job offer. You need to contact ACAS or a good employment lawyer.

That's rubbish, I'm so sorry.

Yes if you relied on their offer to your detriment you could sue. For instance, if your old job was no longer available and/or you'd moved or something like that.

Realistically though I'd just go back to my old/current employer and see if I could stay. It happens!

No - there is recourse through the courts, as the contract was signed and has a legal basis. The standard contractual notice period should be paid at the very least and a tribunal may also consider loss of earnings from the previous employment from which the OP resigned to take up the job offer in good faith.

I presume there is a probation period during which they can fire you with no or very little notice. So they could let you start and tell you to pack your bags immediately if they wanted to. How would that help?

It is rubbish. I had a job offer withdrawn when covid hit. Luckily I wasn’t working so hadn’t resigned from anything.
In my case, they phoned me 18 months later, and I have been there 9 months now.
Hope everything works out and something comes up soon.

I did get paid one months notice too- I forgot that!

I have in the past been the employer in this circumstance.

Its an awful thing to happen so very sorry this has happened to you.

But if they cant afford the role and they are making redundancies they even if you where to win your chances of a payout are low.

You will incur costs, and use time and emotion try to sue with little likely return.

Honestly the best thing to do is go back to current employer and ask if they will have you back. And/or start looking for another job.

I am in discussion with my current employer as they haven’t filled my role and have a lot of vacancies at my level, but besides from that they already processed my resignation and I think I will lose my length of service and associated benefits, if they decide I can stay.

The contract they sent was on an adobe link which has expired! I’ve asked them to email a copy.

they already processed my resignation and I think I will lose my length of service and associated benefits, if they decide I can stay

If you haven't actually left yet then you will get continuity of service. If you have left then its more tricky.

That’s if there is a contractual notice period from day 1. Probation periods seem to be the norm.

Employees have certain rights from day one, and that includes during probationary periods. Firstly if there is no probationary period specified in the contract of employment, the employer can’t just add one after the employee starts work. Secondly even if there is a probationary period specified, the employee would still be entitled to any statutory notice period given in the contract of employment. The employer couldn’t fire an employee immediately unless it was for gross misconduct - there is a procedure for performance issues consisting of warnings, both verbal and written, and possibly extending the probation period before dismissal.

The contract states ‘during this time either party may terminate this agreement by giving one months notice’

There is no legal right to a probationary period. And even if there is one it is good practice but meaningless legally.

Unfortunately statutory rights (as opposed to contractual obligations) are pretty limited with less than 2 years service unless the employee has protected characteristics that they can evidence they are being discriminated against.

Ideally an employer will have a disciplinary policy and will follow it regardless of length of service - but if they do dismiss prior to 2 years then the only redress is suing for breach of contract.

You haven’t even left yet so Iit shouldn’t affect your length of service.

The biggest issue is payroll. Check if they have done the final payroll run, if not they can easily reinstate you on the pay system- don’t let them fob you off.

You could sue for breach of contract but if you are able to stay with your current employer there is no financial loss. This would potentially limit compensation to £0.00.

You are likely entitled to something even if is notice period pay
citizen advice on contracts
And what acas says

You can be fired for no reason, except for one of the 9 protected characteristics, within the first 2 years with no recourse but they still have to pay you notice.

Please people, learn your basic rights. Employers rely on people believing negative misinformation on the Internet.

Surely the contract does not come into play until you actually start? Just like you could always just not take/start a job if you’d changed your mind.

You're entitled to be paid your notice period, even if you haven't started work for them yet.

You’re entitled to a months notice as per your contract.

However, as they’ve given notice before your start date, the full month wouldn’t have to be paid as you wouldn’t have been paid for those days regardless as the job hasn’t started yet. Just the days you would have worked that would have fallen within the notice period after you started.

So for example if you were due to start in two weeks, around two weeks notice should still be payable.

Whether it’s worth the fuss is up to you! It’s probably worth starting the ACAS EC process though.

This happened to my friend. She kicked up abit of a fuss (but didn't have to actually do anything formal/legal) and they paid her a lump sum I think equivalent to one months pay (gross). And she got her old job back.

It's happened to me, nothing you can do