In Kankanalapalli v Loesche Energy Systems Ltd [2026] EAT 49, the Employment Appeal Tribunal held that withdrawing a conditional job offer shortly before the start date amounted to breach of contract.
The claimant had accepted a project manager role, with the offer stated to be subject to satisfactory references, a right-to-work check and a successful six-month probationary period. The employer later withdrew the offer before he started, citing project delays.
The Employment Tribunal treated the references and right-to-work check as conditions precedent — requirements that had to be satisfied before any contract could come into existence. As they had not been completed, it found that no binding contract had been formed.
The EAT disagreed. It held that, on the facts, the conditions were conditions subsequent: matters that did not prevent contract formation, but could have allowed the contract to be terminated if later unmet. The offer contained key employment terms, new starter arrangements had begun, and the conditions were grouped with probation, which could only operate after employment started.
A binding contract had therefore arisen when the offer was accepted. Because no notice period had been agreed, the EAT implied a reasonable notice term. In light of the seniority of the role, the relocation involved and the length of the recruitment process, three months’ notice was held to be reasonable, and the claimant was awarded three months’ notice pay.
