Key drafting mistakes that can lead to claims
Have you ever offered a role and then found yourself needing to withdraw it? Perhaps you lose a major customer and the demand simply isn’t there anymore. Maybe the project the role was tied to is cancelled, or budgets are suddenly tightened and the numbers no longer stack up. Provided there is no contract in place, you can simply notify the candidate, explain the situation, and withdraw the offer – right? Well, a latest case from the Employment Appeal Tribunal (EAT) has demonstrated that it is not always that simple.
The Offer
In Kankanalapalli v Loesche Energy Systems Ltd [2026] EAT 49, Mr Kankanalapalli was offered the role of Project Manager, which he duly accepted, subject to several conditions, including satisfactory references, a right to work check, and the successful completion of a six-month probationary period. The offer letter also set out key terms such as a proposed start date, salary, working hours, and holiday entitlement, but it did not specify any notice period.
However, following a project delay, Mr Kankanalapalli’s offer was withdrawn just under a month before he was due to start.
The Employment Tribunal
Following this, Mr Kankanalapalli brought a claim for breach of contract in the ET. His claim was, however, ultimately dismissed, with the ET determining that the offer remained conditional at the time it was withdrawn, as Mr Kankanalapalli’s references and right‑to‑work checks were still outstanding.
Employment Appeal Tribunal
The EAT, though, disagreed. They drew a distinction between conditions that needed to be satisfied before a contract could be formed and those that applied after the contract had started, concluding that the conditions identified by the Tribunal fell into the latter – conditions to be satisfied after the contract had begun.
In reaching this decision, they noted that the offer letter set out various contractual terms and that the employer had already taken steps to facilitate Mr Kankanalapalli’s employment. They also observed that the three “conditions” – satisfactory references, a right to work check, and the successful completion of a six-month probationary period – were grouped together, without any distinction as to whether they applied before the contract was formed or after it had commenced, noting that the probationary period clearly fell into the latter category.
Outcome
Ultimately, when viewed as a whole, the EAT found that a contract had been formed which permitted the prospective employer to terminate it if any of the three conditions were not met – rather than no contract arising at all. The result? In the absence of any specified notice, Mr Kankanalapalli was entitled to ‘reasonable’ notice, which the EAT determined to be three months – reflecting his seniority and the circumstances surrounding his recruitment.
This case highlights the difficulties of withdrawing offers once they are made, even when there are genuine circumstances for doing so. If you would like support in reviewing offer letters or ensuring the legal aspects of onboarding are handled correctly, our employment team would be happy to assist.
