Dive Brief:
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While rescinding a job offer may seem simple on the surface, it often can cause an array of legal problems for employers, according to SHRM.
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While revoking an employment offer is perfectly legal in most situations, it should not be done without a full legal vetting prior to letting the candidate know, SHRM reports. According to experts, limiting exposure to liability means HR needs to be very be proactive and, most importantly, carefully create job offer letters.
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HR professionals will more than likely have to take back a job offer during their careers, citing factors such as budget cuts, failed drug tests or as the result of a hiring manager's late change of mind.
Dive Insight:
Maria Greco Danaher, a shareholder in the Pittsburgh office of Ogletree Deakins, told SHRM, that the most important thing is having a written employment offer, which in case of litigation would be somewhat supportive of the legal argument that there is an employment "contract" that clearly details "specific terms and conditions that cannot be revoked or changed." She says post-offer it's always good to "understand how to un-ring that bell without creating a legal cause of action for the almost-employee."
Melissa Silver, legal editor for XpertHR USA, an online HR compliance service, said that if at all possible, the best time to revoke a job offer is prior to the candidate agreeing to take the new job. Also, job offers should not be made until all possible pre-employment screening information has been received, though processes such as background checks, drug tests and physicals, typically happen after the offer is made.
Informing the job candidate verbally is fine, but experts agree that applicants also must be notified in writing to keep things clear. HR leaders who haven't done so in awhile should review company policy on rescinding job offers, and consult with employment counsel to make sure the process meets the criteria outlined. At least one company recently found itself in hot water after it rescinded a job offer to a woman after she disclosed her pregnancy.