Withdrawal of offer of employment 1 week before job due to start - advice please?

[MamaMimi]

5 weeks ago, after a 3-stage interview/presentation process, Dp was offered a directorship with a small company. The written offer was accepted, also in writing, T&C's agreed and a start date was set (due to be today, 8th).

2 weeks ago the start date was moved back a week to the 15th.

10 days ago Dp received an email outlining what the priority tasks for the first 3 months would be.

This morning the recruitment agency (through which the job was arranged) phoned to state that the job offer had been retracted, apparently due a downturn in business over the last 3 months .

Recruitment agency not happy, Dp and I apoplectic and extremely deflated, but we would like to know where Dp stands regarding compensation due to the last minute breach of contract.

Can anyone help with advice?

No advice to offer, but wanted to give my sympathy. That sounds horrible and I would be apoplectic too.

Thank you for the sympathy Alberta, it is horrible, we both feel like the rug has been pulled from under our feet

Has he signed anything?

I once knew someone (she was a lawyer, which helped!) who had a job offer similarly retracted and she managed to get her notice period for the new company in pay from them, on the basis that she had signed that she was going to work for them, accepted their terms and conditions and thus was legally entitled to her notice period from them.

If you don't get much help it might be worth posting this in Legal section too - but thought you might like to hear of at least one successful case in getting some money from a company in this situation! (albeit it's not like you get it until you get your next job; in this climate I'd be a hell of a lot more worried and want more given the risky situation your dh now finds himself in. Any chance of going back to his old company or are they already too far down the line interviewing replacements or deciding that they don't need to replace him at the moment?)

Good luck getting it sorted...

Hi zipzap, thanks for your response. Sorry, I had to go to bed after my last post last night and this is the first chance that I've had to come back to the thread!

As I said in my OP, everything has been signed and set and he was due to start next week.

It's good to see a positive result for someone else and it sort of backs up what dp & I have found when we've done a bit of research, which is that he should be entitled to at least the notice period's worth of pay.

The recruitment agency have been very good and are working on the any legal claim on dp's behalf, but dp is also trying to resurrect the offer of the role by speaking to the owner and MD of the company who is going to phone him tomorrow. FX

Until now Dp has been doing consultancy work so no old company to return to. He decided to try and get a job which would provide more consistency as that will be better for our family.

Is there anyone else who knows whether there is a standard claim on the notice period's worth of pay in this sort of situation?

I believe he is entitled to pay for the notice period in his contract but it does depend on what is in the offer letter and the actual contract. Getting any money may prove difficult whether he is entitled or not.

He ought to be entitled to any notice period stipulated in the contract. If there was a probationary period then it would be that period.

However it may be more constructive to go and sit down with the md. businesses are going through difficult times. Maybe they can work together on a temporary contract basis and your dh can demonstrate his contribution and turn it into something more permanent further down the line?

This is breach of contract and if the situation isn't retrievable he could claim for his losses, which would normally be his notice.

Sounds quite dramatic if they were in a position to recruit a new director so recently. Has he actually spoken to them or just the agency?

Thank you all for responses.

Dp tried to speak to the MD but to no avail. It was the MD who had texted to say he would call on Wed pm and dp waited for the call all afternoon and evening but it didn't come.

After speaking with the HR manager of the company on Fri he was told that the MD was now refusing to speak to dp because of concerns over legal action.

Dp had wanted to speak with the MD to try and find a solution that would help both sides. Due to the complete lack of communication he now feels he has no choice but to take legal action and is seeing a solicitor on Tues.