Job offer withdrawn: what you can actually claim

Someone resigns from their old job, and a week before starting gets an email: the offer is withdrawn. In Britain the outcome turns on a single word in the offer itself — whether it was conditional or unconditional. The same word decides whether money can be claimed.

When does an employment contract actually exist?

Earlier than most people think. As soon as someone accepts an unconditional offer, there is a legally binding contract of employment — not an intention, a contract.

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And both the offer and the acceptance can be verbal. A contract exists where clear terms are offered and accepted. So a conversation along the lines of "start Monday, this is the rate" is already a contract once you say yes.

An offer should set out definite terms: job title, rate of pay, start date and location.

Conditional versus unconditional

A conditional offer depends on checks. An employer may check references, criminal record, proof of academic qualifications, proof of right to work in the UK, and health and disabilities — the last only while following discrimination law.

Conditions must be consistent and fair. Acas gives the blunt example: an employer should not ask for evidence of academic qualifications only from non-UK citizens. Applying checks selectively becomes a discrimination question.

Once a conditional offer is accepted and all the conditions are met, the contract can be treated as started — the conditional offer has become a full one.

The offer is withdrawn. What can you do?

Three situations, three different outcomes.

You have evidence of discrimination in the withdrawal — you can take the employer to an employment tribunal.

The offer was unconditional, or all conditions were met — you can sue the employer for breach of contract.

The offer was conditional and the conditions were not met — you cannot take any action. If references suggest the applicant might not be able to do the job, for instance.

And the detail that stings most: an employer does not have to give a reason for withdrawing. You may ask; they need not answer, though giving a valid reason is considered good practice.

The rule that saves the most grief

GOV.UK puts it plainly: do not hand in your notice until you have an unconditional offer. A conditional offer could fall through — leaving you without either job.

In practice: wait until every check is complete and you have written confirmation that no conditions remain.

What if the applicant changes their mind?

The rule cuts both ways. If someone accepts an unconditional offer and then changes their mind, the employer can make them work out any contractual notice — or sue them for breach of contract.

A verbal yes binds more than just the employer.

What to do if you are at this stage

Keep the paper trail: the offer email, your reply, any messages about checks. If the offer was verbal, asking for it in writing is an entirely normal request.

Look for the words "conditional" or "subject to" in the text — that is what decides which of the three scenarios is yours.