Can a conditional job offer still be a binding contract?
Thursday 23rd April 2026
In the recent case of Kankanalapalli v Loesche Energy Systems Ltd, the Employment Appeal Tribunal (EAT) decided that a conditional job offer, once accepted, formed a binding contract entitling the candidate to reasonable notice pay.
Background
On 23 September 2022, a candidate was offered a project manager role, conditional on satisfactory references, a right-to-work check and passing a six-month probation period. The candidate accepted by email on 26 September, provided the required onboarding details, but did not return a signed offer letter.
The employer rescinded the job offer on 11 October 2022 because the relevant project was delayed. The candidate responded by bringing a breach of contract claim, but the employer argued that no contract existed since the required conditions had not been met.
EAT Decision
The EAT held that the offer became binding on acceptance. Pre-employment checks and probationary periods were not required for forming the contract. They entitled the employer to terminate if unmet, but only on reasonable notice.
The EAT relied on the offer letter setting out the essential terms and onboarding having begun. The referee form included the possibility of termination if references were unsatisfactory, rather than stating that a contract would only be established after references were received.
As no notice was agreed, the EAT implied reasonable notice. Given the seniority of the role, the lengthy recruitment process, the relocation required and the suggested 12-month tenure, it held that three months was reasonable and awarded three months’ pay in lieu of this.
Comment
This case is a reminder that “subject to” wording does not automatically prevent a contract from forming. The courts will look at the overall picture, including the offer letter, the onboarding steps taken, and the language used in supporting documents. Employers who want to ensure no contract exists until all pre-employment checks are completed must say so clearly and consistently across all documentation.
It also underlines the importance of setting out the notice period in the offer letter. Where none is specified, a court will decide what is reasonable based on the circumstances. For senior or specialist roles that could mean a much longer period than expected.
If you need guidance on your recruitment procedures or documentation, please reach out to a member of the Employment team.
