It’s one of the most common questions we hear from our clients: “Why did my offer letter get revoked?” Well, the simplest answer to this question can be that it wasn’t good enough.
If your offer letter is not up to par with what the client is looking for, you can do several things to improve it and make it attractive to the client and their team.
Insufficient technical skills are a common reason for businesses to revoke offer letters. What makes an offer letter valuable?
An offer letter is a document that summarizes the terms and conditions of a job offer. It is traditionally used as an agreement between the company and the individual. Offers are often made conditional upon satisfactory technical exams or other proof of qualifications. Sometimes businesses may rescind offers if the employee fails to meet their agreed-upon expectations.
In this blog post, we will explore why IT firms may revoke offer letters and what you can do to prevent it from happening to you.
So let’s dive in and learn more about why IT firms may revoke job offers and how to avoid it!
Why do IT Firms Revoke Offer Letters?
The reason why IT firms revoke offer letters is to prevent the candidate from taking their eyes off the prize by making a leap into a new role. A company may be willing to give a candidate an offer letter and sign them on, but if they suddenly decide that they can’t work for the company due to some reason, then they may need to rescind the offer letter.
This is because once you’ve signed an offer letter, you’re legally bound to that company—just like if you had signed a contract with someone else. So if you decide to leave your job and go somewhere else, it’s technically illegal for your new employer to take anything from your old one—including money or benefits.
However, there are a few reasons why IT firms might choose to revoke an offer letter:
- The company is doing business with another firm, and they want to renegotiate the terms of their contract.
- The employee has not yet started working for the new employer, and they want to wait until they have successfully started working there before signing on with the new company again.
- The employee committed some sort of fraud or other unethical behavior during their time at the last company, and they feel that this is a conflict of interest with their new employer.
What Does Revoke Mean in an Offer Letter?
Revocation of the offer letter means the withdrawal of a last offer to commit to some sort of legally binding contract. The earlier offer had to have been written in such a way that if it had been properly accepted by the other party, it would have gone into effect right away.
Revocation of the offer is used by the offering party to formally cancel the offer before the other party has accepted it. Before the other party accepts the offer, the offering party must inform the revocation to the other party; nevertheless, once the revocation has been communicated, the offer to which the revocation relates is no longer recognized as valid and cannot be accepted legally. The revocation takes effect as soon as it is informed to the appropriate party.
What Happens if a Company Revokes an Offer Letter?
If a company or employer revokes an offer letter, there is a legal Ignominy according to which the candidate has the right to sue the employer for the loss, if suffered. If the contract between the employer and the employee was breached the court will look into the matter and can order compensation.
When Can a Company Revoke an Offer Letter?
As per the Indian Contract Act 1872, a company can revoke an offer until it is accepted by another party. Once the offer is accepted the agreement comes into existence and thus revoking it leads to legal consequences.
Here are three reasons why businesses might revoke offer letters:
1) The employee was hired based on inaccurate information or exaggeration of their skills;
2) The employee did not pass the required technical exams;
3) The company has changed its corporate culture and no longer believes in offering long-term employment contracts.
Note: There are a few offer letters that cannot be revoked known as a firm offer. It states that the offer cannot be revoked for a certain period of time
Can an Offer Be Accepted After It Has Been Revoked?
Before the other party accepts the offer, the providing party must disclose the revocation to the other party; nevertheless, once the revocation has been communicated, the offer to which the revocation relates is no longer recognised as being valid and cannot be accepted legally.
Conclusion
If your employer revokes your offer letter then you have the right to sue them only if you have suffered a loss. Hope you find this article informative.
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