Cancelling a signed contract - before starting work

Hi All,

i need your help/ inputs on the following URGENT matter.

If i sign and formally accept a contract, and a few days after, formally inform the employer that i will not start the work, what realistic consequences may i encounter, if any.

In between the signing of the contract and the start of work there is more than one month period.

According to Laws in Luxembourg, the employer can ask to be compensated for any damage, although an employer (especially large multinational) would normally not go after the employee.

Thank you a lot for your comments

Hi,

I am quite in the same situation so seeking for the same advice.
Can you please let me know what was the decision you took and what were the repercussions , if any ?

Sorry i lost my Phone and i didnt read my emails. Can you please send me the details of the contract thanks.

Antoine1985 wrote:

If i sign and formally accept a contract, and a few days after, formally inform the employer that i will not start the work, what realistic consequences may i encounter, if any.


This likely depends on the terms of the contract, but in general the fact that you have not started working suggests that rescission of the contract is viable to the extent that the counterparty cannot prove damages.

Antoine1985 wrote:

According to Laws in Luxembourg, the employer can ask to be compensated for any damage


You did not specify what law(s). But yes, that makes sense and is consistent with the tenets of contract law of most or all the modern jurisdictions. Likewise you could be entitled to compensation if the employer's breach of contract causes you any losses. Again, these matters largely depend on the terms of the contract.

Here the core issue is what (if any) damages the company can reasonably allege (and prove, obviously) from the candidate's rescission of the contract under the particulars of the case.

Hi, Can you please also help us.. My husband was signed contract with employer but they`re telling that they want to terminate the contract before going to Luxembourg. He told him they don`t want to go forward because of the background check. However in fact there shouldn`t be any problem in background check since everything is clear.. Employer did this before going in last 2 weeks(we rented house, resigned from current company, bought the flight tickets, and more loss like that), it`s too late for us to find new job in current location as we are 3rd country national. I think, background check was just excuse for them.. What`s our right in this case, can i learn it?


What`s our right in this case, can i learn it?     

Hello @e.ymn,

You might want to provide enough details about the contract, the exact terms of the employer's communication(s), and other circumstances you consider could be relevant. Otherwise one can only speculate and reach conclusions that might not apply to the actual scenario.

The clauses of the contract will help ascertaining whether the losses are attributable to your husband's preparations being premature, employer's misleading conduct, or a combination of both.

Issues with the background check that also can be relevant are its accuracy, its timing, and related circumstances. Your mention that "everything is clear" is confusing because it could mean that (1) your husband knows, and agrees with, the contents of the background check, (2) he disputes the contents, or (3) he does not know the contents.

For purposes of evidence, your husband needs to make sure that his interactions with the employer are in writing or otherwise properly recorded.

@pragmatist Hi,


Thanks for the information. I got your point, but we already have signed the employer contract so, why we shouldn`t prepare everything before? Everything is clear meaning is all information was true in CV which provided by us like the companies that he worked in, period time of them, the titles, and so on.. Hence, do we have a right to object this termination? At least, he should work there within notice period and employer should pay at least one salary as far as I know, right ? And how long times we can stay there to search a new job? Should has work permit renewed by a new employer?

@e.ymn

In many contexts a signed contract can be rescinded. The legal implications of rescission depend on the terms of the contract and the facts of the case.


Your husband's contract might have a provision that renders employment contingent on passing a background check. Unless your husband preempted the risk from contractual contingencies, his actions in preparation for the new employment are likely premature. In many (if not all) jurisdictions, one principle of contract law is that a party bears the consequences of the risks as allocated pursuant to the contract at issue.


Your husband can always scrutinize the employer's reason or pretext for cancelling the contract. That scrutiny could unearth employer's fault or bad faith, in which case your husband would have a viable claim [in court] against the employer. But without knowledge of the contract and factual details it is impossible to identify points that support your husband's legal position.


Is the so-called employer actually an [outsourcing] intermediary? Many intermediaries typically post jobs that don't exist, aka ghost jobs. There needs to be a crackdown on these misleading practices. On the other hand, the fact that your husband obtained a work permit suggests the employer got involved in the process. Hence, with the scant information given it is hard to discern whether the employer is acting with transparency.


Also the follow up questions about work permits and lawful stay are unanswerable given the lack of relevant details. More likely than not, these matters have nothing to do with the specifics of the contract.

@pragmatist Hi. Thanks for all information. Finally we were get informed that both of us have work permit. But company doesn t want to give it. When we called the immigration office, they told us we can call the police to take our work permits since those documents are official and belong to us also including our information. Is it our right to take them?


    @pragmatist When we called the immigration office, they told us we can call the police to take our work permits since those documents are official and belong to us also including our information. Is it our right to take them?   
    -@e.ymn

I'm not acquainted with Luxembourg immigration laws, but I presume you're better off by following the indications the Immigration Directorate is  giving you.


Since your matter might involve a change of activity, you might want to read this (including the legal sources at the bottom of that page) if you haven't already.