LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Bipin (HR Head)     19 February 2014

Offer withdrawal

Hi All,

I am an HR head at HR consultancy firm. few months back we had made an offer to a candidate for onsite job opportunity at client site in UK, 

everything was smooth candidate had resigned from his then current job but all of sudden after 20 day we received an intimation from client site that project is cancelled due to unavoidable circumstances.

Now as the purpose of hiring the candidate was no more valid hence we withdrew the offer made (offer withdrew before the candidate joined us), now that candidate is serving us notice to pay the damages as we withdrew the offer and later he didn't found a suitable job.

From our end we tried harder to post him on alternate clients here in India but was not so.

Kindly advice what shall we do! as things were not in our hand..


 5 Replies

Dibakar Ray (Advocate.)     19 February 2014

Mr. Bipin,

As per provision of Indian Contract Act, 1882, once the offer is made & being accepted by the other party this will constitute a Agreement enforceable by law, thus contract.

In your case also, after accepting the offer, it being treated as contract.

You can not say at this juncture that things were not in your hand as the offer and acceptance been made by you and not by your client.

You can terminate the services by giving notice for the period as mentioned in the contract of employment or pay the amount in lieu of the notice period equivalent to the payment of notice period.

Kumar Doab (FIN)     19 February 2014

Mr. Dibakar Ray has advised you perfectly.

Let us look at the matter from other perspective.

You might have included in the offer letter or the establishment might have done it also: that if the candidate does not join then he has to tender notice pay months………………… or liquidated damages of Rs……………….

Your offer of another venture is not necessarily the right offer for which the individual has given up his current source of livelihood.

Although you shall still earn your remuneration and establishment shall earn its consideration/commission/fee if the individual takes up another offer made by you. 


Tender the notice pay and close the matter.

Bipin (HR Head)     20 February 2014


Offer is withdrawn 12 days before the Candidate joins our company.!



Dibakar Ray (Advocate.)     21 February 2014

In that case, He Should have accepted the offer and sent you written acceptance of the offer or you have taken any written acceptance of the offer made by you.

The same answer given above will be applicable here.

Sorry to note that you are trying to take advantage of the legal position to come out of the peril caused by you and your client. You are the one responsible for the whole thing and not the guy who have trusted you and left the job only to know that he will not be able to join the new company.

Although you have not asked for, I am giving here another way to resolve. You can claim the compensation from the company for whom you were recruiting the new guy if you choose to. This will definitely balance the scenario.

Kumar Doab (FIN)     21 February 2014

Mr. Dibakar Ray has advised you properly.

Even if your client does not compensate you the claim of candidate shall still have merits.

Tender the compensation to the candidate and close the matter.

It is felt that for the sake of your business you don’t want to confront your client(s) and instead want the candidate to forego his rights.

The approach is too self centered and not palatable for the candidates who has been hit badly. 

In today’s’ world the news spreads on the wings of internet, SMS, What app, phone calls………………..Avoid bad publicity.

This candidate is now properly informed and it is better to close the matter.

In future he may think to involve Trade Unions, Employee’s forums etc too.


It shall be better to learn from the episode and be careful to transact properly with your clients, in future.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register