Rescinding a Job Offer: Can It Be Done? Is It Legal?
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Rescinding a Job Offer: Can It Be Done? Is It Legal?

Have you found the perfect employee you want to hire, but for some reason, you must withdraw your job offer? If you are in this position, it is essential that you know the potential implications this may have on you as a business and your appeal to the job market.

Below are key questions you need to be aware of regarding the legality of rescinded job offers and how to avoid problems.

Why Do Businesses Rescind Job Offers?

Rescinded job offers are standard, and they are usually due to crucial changes happening in the business. The timing when the ideal candidate appeared, and a closer look at their profile may also lead firms to consider rescinding their offer.

Is It Legal To Rescind A Job Offer?

If the position is an at-will employment setup, it is legal to rescind the offer. In this setup, employers can withdraw the offer if they cite a legal reason supporting the decision.

However, employers are not allowed to rescind the offer for discriminatory reasons. Candidates can seek legal action against you even if they have yet to be hired by the company.

It is also important to note that there may be legal consequences pinned against you if you withdraw a job offer. Candidates can use the “promissory estoppel” doctrine to cite that they did not fulfil their promise to the harmed party by hiring them when they made the offer.

How To Rescind A Job Offer?

If you can rescind a job offer, here are some tips on how you can revoke the job offer without facing any problems:

  • Ask Your HR And Legal Team First.

Before withdrawing the job offer, make sure that your reasoning is sound and that there won’t be any legal complications once you cancel the order. You can ask your business’s HR and legal team to help you determine these facts before moving.

  • Have Your Alternate Candidate Ready.

If the job candidate whose offer you want to rescind isn’t up to your expectations, you should have an alternate candidate ready to fill their role. Review the applications you received and see which ones initially passed your interviews or were slated for a second interview. Make sure to schedule your time wisely to see which one of these applicants would do well for the position.

  • Speak To The Candidate In Person.

When rescinding a job offer, speak directly to the candidate in person. Explain to them why you are withdrawing the offer and be honest without revealing your company’s secrets. You can also say that you are happy to accept a future application from them.

As a business, you need to be careful with your actions due to potential issues you may face. Unfortunately, some of these actions may affect how you build your business, and they may happen when you least expect it. So, if you find yourself needing to rescind the offer, make sure you prepare accordingly to avoid any legal issues that may come your way.

Not easy being an HR. Here are some more articles to help you:
How HR Analytics Helps Making Decisions in Hiring You
5 Ways to Use AI to Find Your Next Talent
How The Rise of the Gig Economy is Challenging HR

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