Withdrawing an Unsigned Job Offer in the Philippines: Is It Legal?
Last updated: Philippine law through 2024. This is general information, not legal advice.
Quick answer
- Before the applicant accepts the offer: An employer may generally withdraw a job offer—even if it’s in writing but unsigned—so long as the withdrawal is communicated before acceptance and is done in good faith and without unlawful discrimination.
- After the applicant accepts the offer (even without signatures): A binding employment contract may already exist. Withdrawing at this point can expose the employer to civil liability for damages (breach of a perfected contract or bad-faith dealing), though illegal dismissal remedies usually require that employment has actually commenced.
- If the offer was clearly “conditional” (e.g., subject to medical clearance, background check, visa/work permit, Board passers’ results), failure of the condition can justify withdrawal.
The rest of this article explains the legal bases, edge cases, and practical steps for both employers and applicants.
Legal foundations
1) When is there a binding employment contract?
Under the Civil Code, a contract is perfected by consent—a meeting of the offer and acceptance on the object and cause. Employment contracts in the Philippines need not be in writing to be valid (except in special cases). An offer can be accepted by email, message, or conduct (e.g., the applicant clearly says “I accept,” submits all pre-employment documents on request, or agrees to a start date and compensation).
Key point: The absence of signatures on a formal offer letter does not automatically mean there is no contract. What matters is whether acceptance has been clearly communicated to the employer.
2) May the employer revoke the offer before acceptance?
Yes. As a rule of obligations and contracts, an offer may be withdrawn any time before acceptance is made known to the offeror. Even if the employer set an “accept-by” date, the employer may still revoke before acceptance unless there is a separate, paid option (consideration given to keep the offer open). The withdrawal must be communicated and must respect the standards of good faith and fair dealing.
3) What if the applicant already accepted?
If acceptance precedes withdrawal, the parties may have a perfected contract. If the employer later refuses to honor it, typical consequences are under the Civil Code (damages for breach or for abuse of rights / bad faith), not the Labor Code’s illegal dismissal remedies—unless the employment relationship has actually begun (e.g., on or after Day 1 of work).
- No start yet: Remedies are usually contractual/civil (e.g., actual/reliance damages for expenses incurred, possibly moral damages if bad faith is proven). Reinstatement and backwages typically don’t apply because those assume an employer–employee relationship already exists in fact.
- After start or on Day 1: The Labor Code framework applies; termination needs a just or authorized cause and due process. A “withdrawal” at this point is essentially a dismissal.
4) Does the Statute of Frauds block oral employment?
Generally, no. Employment contracts are commonly enforceable even if unwritten. The Statute of Frauds (which requires certain agreements to be written) typically applies to agreements not to be performed within one year—but once a contract is partly or fully executed (e.g., the employee begins work), the statute cannot be used to avoid obligations. In practice, most employment arrangements are either at-will regarding duration or are performed within a year, and courts look at performance and conduct more than signatures.
Lawful reasons to withdraw a (pre-acceptance or conditional) offer
Employers may withdraw—before acceptance—for any lawful and non-discriminatory reason, and after acceptance if a condition precedent objectively fails, such as:
- Failed background checks (consistent with Data Privacy rules and fair-dealing standards)
- Failed pre-employment medical/fitness clearance (compliant with anti-discrimination rules; decisions must be job-related and necessary)
- Visa/work authorization not granted
- Licensure/board exam not passed when required by law
- Material misrepresentation in the application (e.g., falsified credentials)
- Documented business necessity discovered pre-start (role eliminated, funding collapsed), though damages risk remains if a perfected contract already exists
Best practice: Make offers expressly conditional and tie each condition to the inherent requirements of the job.
Unlawful or risky grounds for withdrawal
Even pre-employment decisions are covered by anti-discrimination and fair dealing norms. Withdrawal can be unlawful if motivated by:
- Age (Anti-Age Discrimination in Employment Act)
- Disability (Magna Carta for Persons with Disability), unless the person is unable to perform essential job functions with reasonable accommodation
- Pregnancy, sex, marital status (various women’s protections and equal opportunity principles)
- HIV status (Philippine HIV and AIDS Policy Act)
- Mental health condition (Mental Health Act—protects against discriminatory employment actions)
- Other protected traits under national law or local ordinances (e.g., SOGIE protections in some LGUs)
The Data Privacy Act also constrains how pre-employment information is processed; using sensitive personal data beyond stated purposes can create legal exposure.
Practical consequences and remedies
If you’re the employer
- Before acceptance: You can withdraw, but do it cleanly—prompt written notice, polite explanation (without revealing sensitive data), and no discriminatory language.
- After acceptance but before Day 1: You may face claims for damages (e.g., the candidate resigned elsewhere, relocated, or incurred costs relying on your promise). Good-faith business reasons, proper documentation, and any clear conditions in the offer help reduce risk.
- After Day 1: Follow the just/authorized cause + due process requirements; a simple “withdrawal” is no longer available.
If you’re the applicant
- No acceptance yet: The employer can walk away. Consider accepting promptly if you intend to proceed; until then, keep alternatives open.
- After you accepted: If the employer backs out, consider a civil claim for actual damages (e.g., costs of relocation, lost interim income if provable), and possibly moral/exemplary damages if there’s clear bad faith. Labor remedies (reinstatement/backwages) typically require that you had already started working.
- If a condition failed: Assess whether the condition was lawful, job-related, and fairly applied. If not, there may still be grounds to contest.
Special contexts
- Probationary hiring: The employer may end probationary employment for just cause or failure to meet reasonable, written standards made known at hiring, with due process. That is different from pre-start withdrawal.
- Fixed-term hires: Courts scrutinize fixed-term arrangements; withdrawing after acceptance can trigger breach exposure for the entire term’s value (subject to mitigation).
- Public sector/GOCCs: Civil Service rules and special charters may impose stricter requirements; rescissions can implicate administrative law, not just private contract rules.
- Recruitment agencies: Additional regulatory duties and liabilities may apply.
Drafting tips for employers
- State conditionality clearly. Example: “This offer is conditional upon (a) satisfactory background and reference checks, (b) valid pre-employment medical clearance, and (c) proof of eligibility to work in the Philippines.”
- Include an offer expiry and how acceptance must be communicated (“Reply ‘I ACCEPT’ by email by [date].”).
- Clarify start date contingencies (“Start date is tentative and may shift due to [X]; we will confirm in writing.”).
- Align pay and role specifics (title, supervisor, work location/arrangement, base pay, allowances, probationary period, performance standards).
- Data privacy notice for pre-employment processing.
- Reservation of rights consistent with law; avoid language that looks discriminatory or arbitrary.
Evidence and documentation that often decide these disputes
- Time-stamped acceptance (email/message) vs. time-stamped withdrawal
- Offer letter wording (conditional vs. unconditional)
- Proof of reliance (resignation letter, canceled lease, relocation bookings)
- Background/medical reports and job-relatedness of the criteria
- Internal approvals and business rationale for withdrawal
- Any discriminatory remarks or patterns in hiring
Frequently asked questions
1) If I never signed the offer, can I still be bound? Yes, if you clearly accepted the essential terms. Signatures are strong evidence, but not required for perfection of an employment contract.
2) Can an employer withdraw the offer on my start date before I clock in? If you had already accepted, that looks like breach of a perfected contract and can lead to civil damages. If you have already reported for work, labor termination rules apply.
3) What damages are realistic? Typically actual (out-of-pocket) and foreseeable reliance losses; moral/exemplary require proof of bad faith or highly opprobrious conduct. Courts will expect mitigation and proof.
4) Do I need a written employment contract to sue? Not necessarily. Emails, messages, and conduct can prove offer and acceptance.
Employer checklist (withdrawal)
- Confirm no acceptance has yet been communicated.
- If there was acceptance, confirm which condition failed and keep proof.
- Screen decision for anti-discrimination and privacy risks.
- Send a timely, respectful notice; avoid unnecessary detail.
- Consider ex-gratia support (e.g., token reimbursement) if reliance costs are evident, to reduce disputes.
- Preserve records.
Applicant checklist (offer withdrawn)
- Gather timeline (offer, acceptance, withdrawal).
- Keep proof of reliance (resignation, bookings, expenses).
- Assess whether a condition genuinely failed and whether it was job-related.
- Explore amicable settlement; if not feasible, consult counsel on civil claims.
- If you had already started working, treat it as a termination and evaluate Labor Code remedies.
Bottom line
- An unsigned job offer can be withdrawn if the applicant has not yet accepted.
- Once accepted, even without signatures, the employer risks breach liability if it backs out without a valid, clearly-stated condition precedent that has failed.
- At every stage, decisions must be in good faith, non-discriminatory, and privacy-compliant.
When stakes are high (e.g., the applicant resigned a prior job or the employer faces urgent business changes), it’s prudent to get case-specific legal advice based on the actual documents, messages, and timeline.