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Learning how to rescind a job offer the right way is important for professional, reputational, and legal reasons. Regardless of the reason, it is crucial to handle the process with professionalism. Doing so not only protects your company’s reputation but maintains a positive experience for the candidate involved.
First, you need to ensure your reasoning doesn’t violate labor laws (i.e., discrimination against a protected class). You’ll then notify your candidate of the decision, explain the reason the offer is being rescinded, and give the candidate an opportunity to follow up. Finally, formalize your decision by sending a letter to the candidate.
Key Takeaways
Use our free rescinded job offer letter template below, which you can customize to suit your company’s needs.
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Rescinded Job Offer Letter Template
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Many states have at-will employment. As long as the reason for denying employment doesn’t break any federal hiring or employment laws and isn’t for reasons relating to previous whistleblowing activities, employers can terminate the employment relationship at any stage in these states.
Employers rescind job offers for many reasons. These include both external (or candidate) factors, including failed background or drug tests, and internal (or company) factors, such as budget issues or the offer being made to the wrong candidate.
When unforeseen circumstances arise with a particular candidate, it may be appropriate for your company to rescind a job offer. These may include:
Certain instances within your company may prevent you from hiring a candidate for whom you have already offered a job. These may include:
Rescinding a job offer cannot be for reasons that are protected by law, such as discriminatory-related reasons, including:
By rescinding a job offer for such reasons, companies not only jeopardize their reputation and credibility but also open themselves up to potential legal consequences.
Protecting employees from discrimination starts with the hiring process itself. Employers must ensure that their recruitment practices are fair and unbiased. Rescinding a job offer based on discriminatory grounds undermines the principles of equal opportunity and fairness in the workplace.
Once you are secure in your reasoning and ready to move forward with rescinding a job offer, follow these steps:
Rescinding an offer has limited risk to the organization before sending an offer letter, even if a verbal indication was made. However, when you’ve already sent an offer to the candidate, you will want to contact them and clearly state that the job offer has been rescinded.
Delivering the news in person is ideal, with initial contact usually done over the phone. If you are unable to speak with the candidate in person, such as with a remote employee, it is recommended that you conduct the initial notification through a video call. Although uncomfortable, speaking directly with the candidate can best express the compassion and professionalism that represents your company.
In clear terms, describe the reason the offer is being rescinded. Much of the time, companies rescind a job offer due to a failed pre-employment drug screen or background check. Share your company’s concerns without displaying judgment or accusations of dishonesty.
There may be a simple reason for the job offer being rescinded—and if the candidate is still eligible for this or another position in your organization, you will want to stay on good terms. If it is due to an internal company decision, such as budget limitations or a change in strategy, be sure to let the candidate know that you will keep their resume on file for future consideration.
Provide the candidate with an open invitation to follow up with the company with questions they may come up with after the fact. In addition, if the rescinded job offer was due to candidate error or findings, you will want to allow them to explain. Although this may not change your decision, it is a best practice.
When you rescind a job offer, it is not complete until you have delivered a formal letter to the candidate, explaining what occurred and what was discussed over the phone or in person. This letter may be sent by email or regular mail but should be delivered to the candidate within three business days of your conversation with them.
Your physical letter should include the following:
Having a well-crafted job rescind letter template can make the process of rescinding a job offer much smoother. The letter should be concise yet professional, clearly stating the reason for rescinding the offer while also expressing regret for any inconvenience caused. It is essential to be honest and transparent in your communication, ensuring that you provide enough information to explain your decision without going into unnecessary detail.
Download our customizable job offer rescind letter template here.
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Rescinded Job Offer Letter Template
