Are Verbal Offers of Employment Contractual in the UK?

"Verbal offers aren't worth the paper they're not written on!" — sound familiar?

It's something I often hear from small business owners who've offered a job over the phone, then had second thoughts. But can a verbal offer of employment actually form a legally binding contract?

The short answer: yes, it can. The longer answer — and the one every small business should understand — is that the words you use when offering a job matter more than you might think.

The Law in Plain English

Are Verbal Offers Legal?

Yes — a verbal job offer is legally binding once the candidate accepts it.

In UK law, an employment contract doesn't need to be in writing. It exists the moment there's:

An offer
An acceptance
Consideration (usually pay for work)
Intent to form legal relations

So if you say, "We'd love to offer you the role at £28,000, starting next month," and the candidate says "Yes," you've just formed a contract.

In practice:

A verbal offer can be as enforceable as a written one.
Once accepted, the offer can't be withdrawn without notice.
The employee becomes entitled to at least their statutory notice period (normally one week).
Under the Employment Rights Act 1996, a written statement of employment particulars must be provided by day one — but the contract itself can form earlier.

Put simply: spoken words count.

When Verbal Offers Backfire

Picture this: you've just landed a new client and rush to hire an extra pair of hands. You call your preferred candidate, offer the job, and they accept on the spot. Minutes later, that big contract falls through — and now you can't afford to hire.

Too late. Once they accepted, a contract was formed. If you withdraw the offer, it could be a breach of contract — and yes, people do pursue claims.

Case Study: McCann v Snozone Ltd (2015)

After two interviews, Snozone's recruitment agency verbally offered Mr McCann a job at £28,000–£30,000, promising a written contract "by the end of the week." Before that arrived, Snozone changed its mind and withdrew the offer.

McCann took them to tribunal — and won. The Employment Tribunal ruled that a binding verbal contract had been formed. Snozone had to pay him one month's salary (about £3,000) plus costs.

The takeaway? Once a candidate accepts, the offer — written or spoken — is binding.

Can You Withdraw a Verbal Offer?

You can withdraw an offer before it's accepted. Once accepted, though, it's legally binding.

If you realise the role isn't viable:

1. Give notice immediately and pay for that period; or

2. Negotiate withdrawal, explaining honestly and offering compensation if fair.

Trying to deny the offer rarely ends well — especially if emails or recruiters were involved.

How Employers Can Protect Themselves

1. Be Clear Before You Offer

Double-check details before making a verbal offer:

Job title and key responsibilities
Salary and benefits
Start date and location
Working hours and probation period

Avoid vague promises like "we'll sort that out later."

2. Follow Up in Writing

Confirm every offer in writing as soon as possible. This prevents confusion and creates a clear record.

If you use agencies, agree who can make formal offers and stick to it.

3. Delay If You're Unsure

It's fine to say, "You're our preferred choice — I'll confirm tomorrow once the budget's approved."

That's honest and avoids forming a contract too soon.

4. Have a Withdrawal Process

If you must withdraw, act quickly and document everything. Offer to cover reasonable costs where appropriate — fairness matters.

5. Keep Templates Updated

Review your offer letters and recruitment policy. Include a clause stating all offers are subject to written confirmation.

Train hiring managers to follow this process.

For Employees: Can You Trust a Verbal Offer?

Yes — but tread carefully.

If you've had a verbal offer:

Ask for confirmation in writing straight away.
Note who called, when, and what was said.
Don't resign until you have written proof.

If an employer retracts a verbal offer after you've accepted, you can claim breach of contract. Usually, compensation covers the notice period or proven financial loss.

A KUHR Case Example

One of our clients once offered a job over the phone on Friday, only to freeze the role by Monday. They'd already emailed "Welcome to the team!"

We advised them to apologise and offer one week's pay for inconvenience. The candidate accepted, and no claim followed.

It cost £800 — far cheaper than a legal dispute. A timely reminder that even small businesses need structure around offers.

Hazel, our office dog, wagged her tail in agreement.

Common Questions About Verbal Offers

Are verbal offers of employment legally binding in the UK?

Yes. Once accepted, they form a contract.

Can an employer withdraw a verbal offer before acceptance?

Yes — but once it's accepted, you must give notice or pay compensation.

Can you end a job before it starts?

Only by giving notice or agreeing mutually to end it. Otherwise, it's breach of contract.

What if an agency made the offer?

You're still responsible — the agency acts on your behalf.

Are there exceptions?

Yes. If terms were unclear or marked "subject to contract," a tribunal might find no contract existed — but the burden is on the employer to prove that.

The Takeaway

Verbal offers may feel informal, but they're legally binding once accepted. Before you pick up the phone, check:

Are you ready to commit?
Do you have all the details agreed?
Can you follow up in writing straight away?

If not, pause. A little patience now saves a lot of stress later.

And if you're unsure whether a verbal offer you've made (or received) is binding, get in touch. KUHR can help you review your recruitment process and create offer templates that protect your business — and your peace of mind.

Hazel might even proof-read, if cake's involved.

Key Sources

[ACAS: Job Offers and Written Statements](https://www.acas.org.uk/job-offers)
[Gov.uk: Employment Contracts and Conditions](https://www.gov.uk/employment-contracts-and-conditions)
Employment Rights Act 1996
McCann v Snozone Ltd (2015)