Retraction Letter

Summary ▪ A retraction letter is a formal written notice from the employer informing a job candidate of the withdrawal of the employment offer. 1. Concept A retraction letter is a formal written notice from the employer informing a job candidate who have been signed for employment that the latter is being withdrawn. a. Validity Q: Is a retraction letter involving an employment contract with suspensive conditions valid? A: Yes, provided that the employment contract is clear with the suspensive conditions.

Case Law Sagun v. ANZ Global Services and Operations (Manila), Inc.G.R. No. 220399, 22 August 2016 • An applicant signed an employment contract with suspensive conditions stating that the employment is conditioned on the Company’s satisfaction with the results of his pre-employment requirements, particularly on background checks. • On his scheduled first day of work, he tendered a resignation letter to his previous employer and submitted a copy thereof to the Company as part of the pre-employment requirements. • On the same day, the Company tendered him a retraction letter after finding inconsistencies with his last two (2) employer. HELD: • The employment contract was perfected; however, it did not become efffective due to suspensive conditions. • While there was already a perfected contract of employment when the complainant signed the Company's employment offer and agreed to the terms and conditions that were embodied therein, it was nonetheless subjected to several condi...