Karishma Yadav 10 May 2020
There are legal remedies available on arbitrary decisions taken by companies to withdraw job offers abruptly.
As per Section 5 of the Indian Contract Act, 1872-
"A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards."
The job offer once accepted becomes a basic legal contract between you and your new employer and when your employer withdraws that offer then it falls under ‘Breach of Contract’. Normally the contract once made cannot be unilaterally revoked.
So, if an employer cancels a job offer, candidates can sue the employer for damages, if losses have been suffered. The court looks into your case and if it finds your contract was breached then it can order your employer to pay you damages or compensation.
Section 6 talks about the requisites of revocation of contract. One needs to communicate to other party and if there is lapse of time in accepting the offer then contract can be revoked. Another reason is if acceptor fails to fulfil conditions precedent to acceptance.
Therefore, employers should address the concern of the individual. They should help the employee to find another job. As repeated rescinding offers might blemish reputation of the company. In future it might be difficult for them to hire bright talents into their company. They need to consider the ramifications of revoking job offers and do whatever to minimize the negative results of the outcome.
Hope this answers your question.
Sudhir Kumar, Advocate (Advocate) 18 May 2020
please state facts of the case. It is not clear even if the matteer relates govt/PSU employment.