What are the consequences if an employer withdraws a conditional offer of employment?
The Employment Appeal Tribunal (EAT) decision in the case of Kankanalapalli v Loesche Energy Systems 2026 gives some clarity on the matter. Kankanalapalli (K) applied to Loesche Energy Systems (LES) for the post of project manager and, following an interview process, was offered the role via email on 23rd September 2022, with a proposed start date of 1st November 2022, and was asked to return a signed copy of the offer letter. The offer was subject to conditions, including satisfactory references and a right to work check, but the offer letter did not provide any details about the notice period required to terminate the employment.
(K) raised some queries on the offer, but by 26th September 2022 he emailed acceptance of the offer by confirming that the terms were acceptable and that he would sign and return the documents in a few days, having explained that he was travelling, but stating, "Please take it that I accept the offer." On 27th September 2022, (LES) wrote: "Dear ……, that is excellent news and we look forward to you joining us."
(K) then completed the new starter information form, together with the form containing the reference contact details, and sent these to (LES). These were acknowledged by (LES) on 6th October 2022, who also reminded (K) to email documents confirming his right to work in the UK and that they would need to see the original documents on his first day at work. (K) emailed the documents that day but never returned a signed copy of the offer letter, and (LES) never contacted his referees or verified the original documents.
Due to a change in circumstances, (LES) informed (K) that the role of project manager would not be required until 3rd January 2023. As (K) did not confirm whether that was acceptable, (LES) wrote on 11th October 2022 that they were no longer able to offer (K) the position of project manager commencing 1st November 2022. The reasons for the withdrawal were unrelated to the conditions attached to the offer. (K) argued that the withdrawal amounted to a breach of contract due to a lack of notice.
The matter went to the EAT, which had to decide whether the job offer conditions were ones which applied after the contract began (conditions subsequent), or conditions which had to be satisfied before the contract could come into existence (conditions precedent). The EAT held that a binding contract had, in fact, been formed and that the conditions operated to potentially terminate it (i.e. they were conditions subsequent) rather than prevent its creation.
To arrive at this decision, the EAT took into account the offer letter of 23rd September 2022, which set out all the key terms of the contract, such as the start date, salary, hours of work, job description, holidays, bonus, and pension. Further, a document was provided to prepare (K) for his first day of employment, and arrangements were made for his security pass. In addition, the document in which (K) was to provide his reference details stated: "I understand that my employment may be terminated without the provision of satisfactory references," but did not state that until these were provided there was no contract in place.
The EAT went on to hold that, where in such circumstances there is a contract in place and a breach has taken place, then reasonable notice would be implied to end the contract. Given the seniority of (K)’s role, three months’ notice would be appropriate.
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