Conditional Job Offers May Require Notice Periods

EAT rules a conditional job offer constitutes a binding employment contract requiring reasonable notice from the employer

In the recent Employment Appeal Tribunal (EAT) case Kankanalapalli v Loesche Energy Systems, delivered on 20 January 2026, an important ruling concerning the validity of conditional job offers was made. The EAT found that a binding contract had been formed when the employer withdrew an offer shortly before the start date, even though the job offer was expressed to be conditional. The EAT ruled that this amounted to a breach of contract and the Claimant was entitled to three months’ notice pay.

The decision highlights the need for employers to ensure clarity and accuracy when making conditional offers of employment to avoid potential disputes.

Background

The Claimant in this case was offered a Project Manager role subject to conditions including satisfactory references and a right to work check. The offer was accepted by email, and the Claimant began preparatory steps including paying relocation expenses and providing the required references. The employer withdrew the offer shortly before the start date for reasons unrelated to the offer conditions and the Claimant argued that this amounted to a breach of contract due to lack of notice.

Employment Tribunal

The Claimant brought a claim for breach of contract, arguing that the offer was withdrawn without appropriate notice. The Tribunal held that no binding contract had been created because the conditions of the contract had not been met, and therefore the employer was entitled to withdraw the offer without providing notice. The Claimant appealed to the EAT.

Employment Appeal Tribunal

The EAT held that the tribunal had erred in proceeding on the basis that no contract existed because the conditions attached to the offer were conditions precedent, meaning the contract would only come into existence once they were satisfied. The EAT opposed this and ruled that the conditions were conditions subsequent, meaning a binding contract had arisen but could be terminated if the conditions were not fulfilled.

As the offer did not specify notice, and no discussion was had regarding the same, the EAT ruled that a term of reasonable notice had been implied. The EAT considered factors such as the requirement to relocate, the status of the role, the duration of the recruitment process, the employer’s steps to begin onboarding and suggestion that the Claimant should secure a 12-month rental arrangement.

Upon consideration of the above, the EAT held that a three-month notice period was reasonable and should have been given by the employer. The EAT therefore granted the Claimant’s appeal and substituted a judgment upholding the breach of contract claim and awarding three months’ notice payment.

Key takeaways for employers

The EAT’s ruling in this matter underlines the importance of employers being clear and unambiguous about the conditions attached to job offers. It is a clear reminder that conditional offers can still create binding contracts.

When making a conditional offer of employment, it is crucial that employers specify the conditions clearly and in writing. Conditions may include satisfactory references, a clean criminal record check, or other pre-employment assessments. Ambiguity in this area can lead to legal challenges and disputes regarding the time at which a binding contract is formed. If employers intend that no contract is formed until conditions are satisfied (conditions precedent), the offer letter must say so clearly and unambiguously; just using the words ”subject to” before any conditions is likely to be insufficient. Instead, any offer should clearly state that no binding contract will come into effect until all specified conditions have been met. The conditional offer process should also be documented carefully, ensuring that both parties understand the terms and conditions of the offer. Employers should also avoid starting onboarding too early, steps such as issuing starter forms or providing equipment and security passes may indicate that the contract has already begun and is therefore binding on both parties.

Employer protection

It may be beneficial for employers to review their current offer letter templates and contractual documentation to ensure they are compliant with the principles outlined in this judgment, ensuring any conditions attached to job offers are legally enforceable and understood by all parties. We advise reviewing your employment practices and documentation to align with the latest legal developments and to seek professional advice if you are uncertain about any aspect of your recruitment process.

Glaisyers ETL’s Employment team are just an email away if you have any questions, comments, or insights to add.