Dear Attorney,
I hope this message finds you well. I have a legal concern that I would like to seek advice on. Recently, I accepted a job offer from a company, signed all necessary documents, and submitted all the requirements requested by the employer. However, after fulfilling all of these obligations, the company decided to withdraw the offer and informed me that they would no longer proceed with my application.
I am unsure whether this action is legally permissible in the Philippines. Could you please advise me on whether a company has the legal right to withdraw a job offer after it has been accepted and all requirements have been fulfilled? Additionally, I would appreciate any information on the legal options available to me, should the company’s action be found unlawful.
Thank you very much for your assistance on this matter.
Sincerely,
A Concerned Job Applicant
Legality of Withdrawing a Job Offer After Acceptance in the Philippines
The scenario you have described is a complex issue under Philippine labor law. In particular, it touches upon important areas of contract law, employment obligations, and the protection of employee rights under the Labor Code of the Philippines. To fully answer this concern, we need to dissect several key legal principles and look at how Philippine law approaches job offers, their acceptance, and the withdrawal of such offers once a potential employee has already complied with the requisite steps.
1. Job Offer as a Contract: Offer and Acceptance in Employment
Under the general principles of contract law, a valid contract requires an offer, an acceptance, consideration, and mutual consent between the parties involved. In the context of employment, a job offer may be regarded as the "offer" component of the contract, and the employee's acceptance, accompanied by their fulfillment of the requirements (such as submission of documents), constitutes acceptance.
Upon acceptance of a job offer, the legal relationship between the employer and the employee takes the form of a contract of employment. This creates certain binding obligations for both parties, as the employer is now expected to honor the terms of the offer, while the employee agrees to comply with the employment conditions set out in the contract.
From this perspective, when a company extends an offer of employment, and the offer is accepted, the offeror (the employer) is typically bound to perform its obligations under the offer, provided that the offeree (the employee) has fulfilled all conditions set forth. Withdrawal of a job offer after it has been accepted and after the applicant has complied with the necessary requirements may be considered a breach of contract, depending on the circumstances.
2. Legal Basis: Labor Code of the Philippines
The Labor Code of the Philippines (Presidential Decree No. 442) governs employment relationships in the country. While it does not explicitly outline the legal consequences of withdrawing a job offer, several provisions of the Labor Code and related jurisprudence provide guidance on the matter.
Under Article 279 of the Labor Code, employees who have been hired for an indefinite period are considered to have regular employment status after six months of probationary employment. However, even during the probationary period, employees are entitled to security of tenure, and their employment cannot be terminated except for just or authorized causes, which must be substantiated by due process.
While the Labor Code provides protection for employees after they have been hired, there is less clarity concerning the period between the acceptance of a job offer and the formal commencement of employment. This creates a legal gray area that may require recourse to contract law and the general principles of fairness and equity under Philippine law.
3. Breach of Contract: Is the Employer Liable?
The withdrawal of a job offer, once accepted, may be seen as a form of breach of contract if the job applicant has reasonably relied on the offer to their detriment. For example, if the applicant resigned from their previous employment or declined other job offers in anticipation of starting work with the new employer, the withdrawal could result in financial harm and other consequences.
In such cases, the applicant may have grounds to file a civil case for damages under the Civil Code of the Philippines. Specifically, Article 19 of the Civil Code states that "every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith." If the employer’s withdrawal of the offer is found to be in bad faith or unjust, the employee could seek damages for breach of contract.
4. Employer's Defense: Right to Withdraw Offer
On the other hand, employers may argue that job offers are conditional and that the employment relationship only becomes binding once certain conditions are met, such as the signing of a formal employment contract or the commencement of work. In some cases, employers may include specific clauses in the job offer letter that allow them to withdraw the offer at their discretion before the employee formally starts working.
Employers may also defend their decision to withdraw a job offer based on legitimate business reasons, such as changes in the company's financial position, restructuring, or the discovery of new information that renders the applicant unsuitable for the role. In these situations, the employer may argue that the withdrawal of the offer is justified and does not constitute a breach of contract.
5. Jurisprudence: Relevant Case Law
Although there is limited jurisprudence in the Philippines directly addressing the issue of job offer withdrawal, there are related cases that shed light on the legal principles that may apply.
In the case of Dela Cruz vs. NLRC, the Supreme Court emphasized the importance of good faith in employment relationships, ruling that "an employer is expected to observe fairness and good faith in the conduct of its dealings with its employees." While this case dealt with a termination issue rather than the withdrawal of a job offer, the principle of good faith is relevant to all aspects of employment law, including pre-employment dealings.
Moreover, in the case of Tan v. NLRC, the Supreme Court ruled that employment contracts should be interpreted in favor of the weaker party, who is generally the employee or applicant. This case highlights the Court's tendency to provide greater protection to employees, particularly when there is ambiguity or uncertainty in employment agreements.
6. Remedies for the Employee: Legal Options
If the company’s withdrawal of the job offer is deemed unlawful or in bad faith, the job applicant may have several legal remedies available:
Filing a Civil Action for Damages: The employee may file a case for damages under the Civil Code. This action may be based on Article 20, which states that "every person who, contrary to law, wilfully or negligently causes damage to another, shall indemnify the latter for the same." If the employee suffered financial or other losses due to the withdrawal of the job offer, they may seek compensation for such damages.
Complaint Before the NLRC: Depending on the specific circumstances of the case, the applicant may file a complaint before the National Labor Relations Commission (NLRC) for illegal dismissal or breach of employment obligations. While the NLRC generally handles cases involving employees who have already commenced employment, there may be grounds for filing a case if the withdrawal of the offer is viewed as a form of constructive dismissal.
Mediation or Negotiation: In some cases, it may be possible to resolve the matter through negotiation or mediation with the employer. This may be a more practical and less costly approach compared to litigation. The applicant may seek assistance from the Department of Labor and Employment (DOLE), which offers mediation services to resolve disputes between employers and employees.
7. Preventive Measures for Future Applicants
To avoid the uncertainty and potential legal issues associated with the withdrawal of job offers, applicants should take certain precautionary steps:
Request for a Formal Contract: After accepting a job offer, the applicant should request a formal employment contract that outlines the terms and conditions of employment. This can help provide clarity and protect both parties in case of a dispute.
Clarify Conditions of Employment: Applicants should ask the employer to clarify whether the job offer is conditional and what specific conditions must be met for the employment to become binding. This can help prevent misunderstandings and protect the applicant’s rights.
Document Correspondence: Keeping a record of all communications with the employer can be useful in case of a legal dispute. This includes emails, letters, and other documents related to the job offer and the applicant’s acceptance.
Conclusion
In conclusion, the withdrawal of a job offer after acceptance and the fulfillment of requirements may, in certain circumstances, be considered a breach of contract under Philippine law. The legal consequences of such withdrawal will depend on the specific facts of the case, including whether the offer was conditional and whether the employer acted in good faith. Job applicants who find themselves in this situation should consider seeking legal advice and exploring potential remedies, including filing a civil case for damages or seeking mediation through the DOLE.
It is essential for both employers and applicants to approach job offers with transparency and good faith to avoid legal disputes and protect the rights of all parties involved.