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A friend of mine was actively looking for job recently and just few days ago, he told me he finally got an offer. And he has signed the offer letter.
I was happy for him but few days later, he told me he got another job offer which is much better in terms of pay, benefits and prospects.
And he started to worry because he has signed the offer letter. Can he still join the new company? Fortunately for him, the notice period for his new job (under probation) is 24 hours. What if it’s 1 month? I’m sure some of you might have encountered such situation before.
I’ve talked to few of my recruiter friends and even my HR who is a good friend of mine. They said that the new employee can choose not to turn up at all even after signing the offer letter. They have experienced many incidents such as this. The company does have the rights to file a lawsuit against this new employee since he or she has already signed the offer letter.
However, most companies will not pursue this. They will not spend time and money to sue one person which don’t turn up for first day of work. Furthermore, involving in a little lawsuit with a new employee who failed to turn up, is just a petty issue. It might actually ruin the company’s reputation.
I must admit though that I cannot guarantee all companies will behave like this. Maybe there are some companies which will pursue this case though I yet to know any.
That’s why the best solution which I can think of is to call the company up and explains. If your the HR of the second company knows, maybe you can ask them for advice. If they don’t, just call the first company and explain. If things don’t go well, you can either let the second company knows (and hoping they will help you) or you will just have to let it go and turn up for work in the first company.
Unless you are willing to take the risk of not turning up without informing.
But either way, you will most probably get blacklisted by the first company for at least a few years (either you resign within 24 hours or not turn up at all). Companies don’t tend to blacklist a new employee forever for something such as this. They will not be bothered too much with it, not for that long anyway.
To summarize everything:
- You signed offer letter from company A.
- You get a better offer from company B and decided to join.
- You should call company A to explain. If they are okay, good.
- If they are not okay, call company B’s HR and inform them. See if they can help you. This is the last resort.
- If company B refuses to advise or help and company A refuses to back off, you have to let go of company B.
- All the above don’t apply if you are willing to risk it and don’t turn up for company A. Just be prepared to face the consequences of being in a lawsuit (though the probability is very very very low, it is still a risk).
That’s why I always tell people not to sign the offer letter until the very last minute. However, things don’t always go the way we want it to.
And at the end of the day, the question will be, are you willing to take the risk? Is the new offer good enough for you to take the risk?
Hope it helps.
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8 Responses
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A letter of offer is not the same as a contract for employment. In most countries it illegal to tie someone to the terms of employment without having them sign the actual contract. Maybe that’s the real reason why companies don’t bother to pursue no-shows.
This offer of employment letter is actually for the good of an employee in transition. Without it, one is not supposed to resign from current employment. Thus this document should not be treated casually by the employee. In the event of a no-show, the damage to the company doing the hiring is only minimal at worst. But it’s better for the employee to settle the issue amicably with the company if he turns down an offer after signing it. Normally this is easily settled because most companies allow you to report for work with the signed letter at the same time. So, if you turn it down, all you need to do is give them a call to decline the offer. For courtesy’s sake, never leave the HR person waiting in vain for you to show up…
Actually, rejecting an offer letter that already signed is very very bad. Especially not turn up on the first day. If you’re unfortunate, the employer might tell other company to boycott you. Scary.
Horizons last blog post..Know Your Investment - Part 1
@ Damien
I think in Malaysia, we’ll get an offer letter to sign and that will be our employment contract (with all the clauses, benefits, bla bla bla). As far as I can remember, there’s only 1 which we need to sign. The rest of the doc are quite standard and will only be given to you on your first day. Those don’t require any signature.
Correct me if I’m wrong, but that’s what I can remember.
@ LC Teh
As for the small companies with petty bosses, one wonders what will they do if someone really reject their offer letter for a role which they are very desperate to fill.
That’s why big companies won’t really go after you if you call them up nicely and tell them you have another offer. Even if you don’t show up without informing them, they won’t go after you but it’ll be quite bad for you. The HR people might remember you.
@ Horizon
I think companies will not be bothered to do that if they’re big. Just too much effort to spend on a small ant.
This is where the tough decision arise… but it usually happen. Anyway, have to handle with care otherwise you will lose two offers.
TZs last blog post..Nite out @ Hard Rock Cafe
@ TZ
Don’t burn the bridges if you can.
Yeap. Handle with care and handle with utmost politeness.
I agree with your approach.It is always better to call the company and explain. Generally it is advisable not to turn down the offer once you signed it. It doesn’t show your professionalism.
Having said so, I rejected one signed offer before when I just graduated. That company “bond” me for 1 year before even I start working. What a crap? But at the same time, I also get another offer.
ChampDogs last blog post..Be Careful When You Resign
@ ChampDog
Sometimes, the other offer is too good to turn down and sometimes, good offers tend to come in later than the not-so-good ones since they’re not THAT desperate. Just make sure you don’t go begging for job with the first company next time. hahaha.
But I think, if you explain properly and nicely, they won’t mind that much.
Just be professional.
My first job also tied me for 6 months. LOL. And 2k pay, without EPF, and they can sack me within 2 weeks.