I'd like to think companies rescinding offers after they've been formally accepted on clearly agreed terms would be a rare thing, but it's happened to me three times since early 2020, and I wasn't offered any compensation.

So, unfortunately, I don't consider it rare any more, and I recommend people do not shut down other prospects after agreeing to an offer, until the job has actually started.

One one occasion, there had been a particularly clear exchange of agreed terms in full view of their recruitment firm, with a start date, and we'd gone through many steps to get there.

That job was rescinded by the company ghosting me (and their recruitment firm) for 3 weeks, immediately after telling me to expect my shiny new employee welcome pack in the post. It felt weird and I kept telling myself I was just paranoid, as I was expecting further contact (and welcome pack), but perhaps it was just the company being slower than I expected?

After 3 weeks, they finally reappeared, to arrange a meeting the following week, still keeping me in the dark. The following week they let me know the "bad news" (which they'd known for some 2 weeks but didn't let me or the recruiter know). According to HR's explanation, it was normal for them to send "high level" (principal engineer and above) new hire contracts up to an executive to review, and on this occasion the executive decided the role was no longer required.

Wtf? They start that review after terms are agreed with the candidate? A process which counting interviews and delays took about 8 weeks total, and has a job start date coming up? A circumstance in which the new hire is expecting work materials in the post? I hadn't even negotiated changes: there was nothing special in the terms, just what they had offered.

The recruitement firm were surprised (I believe them) and said they'd be in touch with me and the company to "sort it". Or at least find out what happened.

And then the recruitment firm ghosted me as well. I guess their contract was more important than treating the candidate well.

I stressed out for most of a week after that one, because it was a shock and I was getting ready to start the job. Trying out legal theories to decide if I would win if I sued in tribunal or regular court, considing the clear agreement, the size of the signup bonus I was expecting, and severance pay written in their terms. In some respects, a role being no longer required after a contract is established ought to be like being made redundant. Total with the signup bonus would come to about 5 months salary. Add a bit more because I'd brought another contract to an end, to start the new job.

But I decided not to purse it. Within a few weeks luck happened and I ended up with a surprising, much more interesting job that also paid better, so it worked out well for me.

Reading around, but not consulting a lawyer (and I'm not one), the impression I obtained of the legal scenario when an accepted offer is rescinded is this:

- It's technically a breach of contract, because an employment contract is established when the candidate sends their agreement to offered terms in some evidenced way (such as posting an acceptance email).

- But companies will find a loophole. "Contract subject to references" is often that loophole, but to me that seems challengeable in cases where the company terminates the contract with clearly no intention to contact the references.

- The dropped new hire rarely pursues in these circumstances, and companies know this.

- "You haven't signed the formal legalese paperwork (in the welcome pack)" is what they may want you to believe is what counts. That happened in my case: HR nodded agreement that if I'd received the pack and signed they would have to pay. But a contract generally depends on offered and accepted terms, not whether subsequent paperwork is signed, and we had those terms clearly written out in email form already, with several witness (the recuitment firm). Not to mention a several phone calls with HR (after interviews were completed), making sure terms & start date were crystal clear, and pursuing me to get my acceptance in writing.