Picture this: you’ve landed a new job, handed in your resignation at your old workplace, and are looking forward to your new role. Then, out of nowhere, your new employer pulls the plug and the job offer is withdrawn. Where does that leave you? Do you have any rights?
Is a Job Offer Legally Binding?
In New Zealand, a job offer can be legally binding - but it depends on whether it has been accepted and whether there is a valid employment agreement in place.
If you have accepted the offer and signed an employment agreement, the employer generally cannot just back out.
If you haven’t signed an employment agreement but have accepted the offer (e.g., via email), you may still have a case, as verbal agreements can be legally binding.
If the employer withdraws the job offer before you accept, there’s little you can do, as there was no agreement in place.
What If You’ve Already Resigned from Your Old Job?
This is where things get more complicated. If you’ve left your previous job based on a confirmed job offer, and the new employer pulls out, you could have a claim for breach of contract. You may be able to seek lost wages and compensation for any financial loss suffered as a result.
However, if the new job was conditional (for example, subject to a background check, visa approval, or reference check) and the condition wasn’t met, the employer may have the right to withdraw the offer.
What If the Employer Cancels Before You Start?
If you’ve signed an employment agreement and the employer cancels before your start date, this is unlawful termination unless they can justify their decision under the contract. In this case, you may have a personal grievance claim for unjustified dismissal. You may be entitled to compensation for lost wages, emotional distress, or other damages.
If the job offer disappears due to business restructuring or financial struggles, the employer may argue that they cannot employ you. However, they would still need to follow a fair process.
Having a job offer withdrawn can be stressful and financially damaging. While you may have legal rights depending on your situation, prevention is always best - get everything in writing and understand your rights before making major decisions like resigning from your current job.
If your job offer has disappeared into thin air, don’t hesitate to seek advice from an expert. mathewswalker.co.nz | 0800 612 355
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