A member asked almost 8 years ago

Offer if employment retracted

I had a offer of employment verbally given a start date for a fulltime permanent position. On the morning of that date I received a phone call from the manager retracting her offer of employment. I had already resigned my previous job and am now  unemployed in a country where I can not access financial help from the government. 

I have written the company a letter seeking compensation. What is reasonable to ask of them and if we cant agree on it. What is the further legal action I can take?  A employment lawyer had advised that I do this as it is a breach of contract.  

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. It sounds like you are in a difficult position. From a legal perspective, it sounds like the employer made you a verbal offer of employment and you accepted it. When you accepted the offer, a legal contract was most likely formed. A legal contract can exist even without it being in writing.

If a legal contract existed between you and the employer, both parties were obliged to follow the terms of that contract. For the employer, this means that they should not have retracted the offer or terminated your position without first giving reasonable notice. As a result of the employer’s breach of contract, you are likely to have a legal claim against them. Your claim would be strengthened by the fact that you have suffered financial loss as result of the employer’s conduct (i.e. you ended your previous employment in reliance of the new offer).

There are also special workplace laws that may offer you some legal protection, but this will depend on whether a formal employment contract existed and whether you are protected by Australia’s National Employment Standards. More information about workplace rights can be found on the Fair Work Ombudsman website atwww.fairwork.gov.au. Note that some workplace rights claims must be commenced within 21 days of your employment ending.


Suggested way forward

Although you may technically have a legal claim against the employer, such claims can be time consuming and expensive if pursued in court. A more practical and realistic outcome would be a negotiated settlement involving compensation with the employer. An employment lawyer can advise you of your legal rights and negotiate with the employer on your behalf. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer

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