What limitations are there for an employee who has signed a contingent offer but has been delayed from starting work as a result of the employer?

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What limitations are there for an employee who has signed a contingent offer but has been delayed from starting work as a result of the employer?

I recently signed a contingent offer for a job with a new company. I met all of the terms of the contingent offer and was prepared to start working shortly after. Right before my initial start date, the position was put on hold by the employer and I have been waiting for the job since. Given that I met all the terms of the contingent offer and also received confirmation from the company that it was safe to quit my previous job (as they did not believe there was anything that would hinder my start date), is there anything that I can do in regards to the loss of compensation?

Asked on August 9, 2012 under Employment Labor Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Speak with an employment law attorney; it's possible you have a legal claim under one or both of the following theories:

1) Breach of contract: depending on exactly what the job offer said (e.g. any letters, documents, etc. containing it said), it may have formed a contract of employment.

2) Promissory estoppel: even when no contract is actually formed, if a job offer was made to you when the prospective employer knew (or reasonably should have known) that you'd have to leave an existing job and, knowing that, still made the offer anyway, then if you do quit the job in reasonable reliance on their offer, that "detrimental reliance" of yours can sometimes be enough to make the promise of a job enforceable.


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