Rescind letter of offer: How to Rescind an Offer Letter

How to Rescind an Offer Letter

By Rob De Luca, Bamboo HR
March 12, 2021

If the excitement of sending out a job offer letter has an equal and opposite reaction, it has to be the anxiety of discovering you need to rescind an offer letter. While rescinding a job offer isn’t a pleasant task, you can replace some of that anxiety with the confidence that results from effective preparation. By avoiding hiring mistakes and establishing best practices that help you properly rescind a job offer, you can keep your organization protected, your reputation intact, and the wellbeing of your candidates in mind.

What Are Common Reasons Why Job Offers Get Rescinded?

When a job offer is rescinded, it’s usually because the employer discovered a problem with the offer itself or a problem with the candidate.

Internal Reasons for Retracting a Job Offer

When an organization messes up a job offer, poor planning and/or poor communication are usually to blame. “If it’s a mistake on your end, that’s really embarrassing,” says Cassie Whitlock, HR director at BambooHR. “It puts your employer brand in a bad light, so you’d better be ready to smooth things over.” Some reasons why an offer might require retraction include:

• Exceeding your hiring budget
• Offering a candidate an unauthorized salary
• Double-filling a position
• Hiring for a position that will be eliminated
• Improper conduct during the interview process (nepotism, other biased hiring, etc.)
• Failure to check references prior to the offer
• Offer sent to the wrong candidate

External Reasons for Rescinding a Job Offer

The other typical reason for an employer to rescind a job offer is when a candidate either fails to pass some form of pre-employment screening or is found to have been dishonest in their application. Some typical examples include:

• Fabricating work history or educational background
• Lying about skills, licenses, or qualifications
• Prior convictions related to the industry or position
• Offensive social media behavior
• Failure to pass a drug screening test

But just because the candidate is at fault doesn’t make it easy to rescind an offer. “It’s about as hard as any sort of involuntary separation,” says Whitlock, “and that goes for how you feel about it and how hard it can be if you don’t have your logistical ducks in a row.” 

How to Rescind a Job Offer the Right Way?

Rescinding a job offer isn’t as simple as dashing off an email or leaving a voicemail. You’re dealing with human beings and career-sized consequences, so it’s important to handle things properly. 

Informing the Candidate

At the very least, you should call the candidate to let them know what’s happening and why. If your organization made an error, this is the time to take ownership. After all, you might want to hire the same candidate down the road, so a sincere apology helps preserve the relationship and your employer brand. 

If you’re rescinding the offer due to a screening issue, you need to handle things differently: 

• First, reassure the candidate that the call is confidential and remind them that they have the right to explain or refute any information you discovered.
• Second, explain your concerns without judgment or accusations of dishonesty. There may be a simple explanation, and if the candidate is still eligible for this or another position in your organization, you want to keep things on good terms.
• Finally, if it’s something your organization provides, you might offer assistance in the form of placement services or a positive recommendation.

Send an Official Version

In the event you need to rescind a job offer, you should accompany a phone call with a notice in writing. While a properly worded offer letter should clearly state that it is not a contract, a formal notice acts as an official record and a deterrent against any legal action.

Rescinding a Job Offer Letter: Sample Messages

How do I write a letter of withdrawal for a job offer?

For a retraction due to an internal error, a formal notice might look something like the following:

Dear [Candidate],

We regret to inform you that the offer you received from [Company Name] for the position of [position] was issued in error. This communication is to notify you that acceptance of the offer does not constitute a binding contract and that [Company Name] is under no obligation to provide you with employment or compensation of any kind. If you have not yet signed or returned the offer, there is no need to do so. If you have any further questions, please direct them to [name of HR representative], who may be reached at [phone number] or via email at [email address]. Thank you for your time and understanding.

Sincerely,

[Name of HR Director]

[Position title]       

If you are rescinding the offer based on a pre-screening issue, that communication should include more information. A sample job offer rescinding letter might look something like this:

Dear [Candidate],

As stated in the offer letter you received from [Company name], offers of employment are contingent upon several factors, including but not limited to successfully passing a [background check/drug screening/other screening]. With your authorization, a [screening type] was performed. Based on the information we received, you did not meet the necessary criteria. [Company name] has therefore determined to rescind the offer of employment for the position of [position].

Please refer to the Disclosure and Authorization Form you signed for details about requesting additional information, how to dispute incomplete or inaccurate information, and rights that you have related to background checks and other screenings. 

Sincerely,

[Name of HR Director]

[Position title]    

Internal Communication

Finally, the candidate isn’t the only person who might feel the impact of a job offer being rescinded. “Recruiting can feel a little like dating,” says Vanessa Brulotte, a talent acquisition partner at BambooHR, “and when you find out a candidate won’t get the job, you’re sometimes a bit heartbroken.” 

Take time to talk to your recruiters and let them know how to properly reach out to a former candidate. This not only helps them achieve some closure, but also prevents contradictions and misinformation that can damage the candidate experience. 

In the end, there’s no way to get around the disappointment of having to rescind an offer letter. But by ensuring open internal communication, prioritizing the candidate experience, and emphasizing preparedness, you can minimize both the frequency and the discomfort of this sometimes unavoidable event. 

How hiring managers at your organization communicate with candidates matters and will show up in company reviews. To get involved in the conversation on Glassdoor and start managing and promoting your employer brand reputation, unlock your Free Employer Profile today.

What to Do When Rescinding a Job Offer

• Rescinding a job offer is a sensitive issue that carries potential liability.
• Meet with the candidate in person to explain why you’re rescinding the job offer and document the decision in a formal letter.
• Consult with legal counsel to review the decision and ensure you’re not opening up the business to potential litigation.
• This article is for small business owners and hiring supervisors reconsidering a job offer extended to an applicant.

At some point, small business owners and hiring managers may decide to rescind a job offer they extended to an applicant. Whether you’re rescinding a job offer because of a hiring mistake or various other reasons, it’s never easy to explain this decision to the candidate. 

It’s crucial to rescind a job offer correctly and thoughtfully, weighing legal advice and the decision’s ramifications. We’ll explore what to do when rescinding a job offer and what you need to know to conduct this process legally and respectfully. 

Can you legally rescind a job offer?

There are situations where you can and can’t legally rescind a job offer – and some gray areas. First, consider two questions:

• Do you have a compelling, valid reason for withdrawing the job offer? 
• Is the action legal and ethical?

When you can rescind a job offer

It’s legal to rescind a job offer in an at-will employment situation or state. At-will employment means the employer can terminate an employee for any legal reason, and employees can quit without notice or explanation. 

When you can’t rescind a job offer

Employers can’t rescind job offers for discriminatory reasons. For example, they can’t withdraw a job offer based on the person’s race, religion, gender, gender identity, pregnancy, age, whistleblowing activities or national origin. 

If a job applicant feels they’ve been discriminated against, they can pursue legal action. 

When you may face legal consequences

Even if you can rescind a job offer, you may still face legal consequences. “Promissory estoppel” (promises made) is a legal doctrine that supports a harmed party in enforcing employment promises, even in the absence of a formal employment contract. This doctrine is a critical reason to seek legal counsel before withdrawing a job offer.

Additionally, legal and ethical considerations can intersect when an employer withdraws a job offer. For example, say you extend a job offer to a candidate for a sales manager position. The candidate writes a job resignation letter to their current employer and sells their house. However, you rescind the offer. 

The sales manager candidate has the legal promise of a job, but the employer has the legal option to exercise their at-will employment rights. In this situation, the candidate may use promissory estoppel in a legal action to enforce the promise of employment and show financial harm, even though a contract wasn’t signed and executed. 

Tip: During the hiring process, emphasize that a candidate shouldn’t take any premature irreversible steps until they receive a job offer letter and confirmation that all pre-employment requirements have successfully been completed.

What to do before rescinding a job offer

Small business owners should approach rescinding a job offer with great care and preparation. Not preparing correctly can lead to serious legal consequences, even if the offer withdrawal is within your rights.  

When considering rescinding a job offer, consider the following best practices.

1. Perform a full legal review before rescinding the job offer. 

Consult an expert and perform a legal review of the candidate’s job offer before rescinding it. Remember, the candidate has the right to pursue legal action if they feel you breached an implicit contract. Sometimes, even seemingly innocent statements like “I look forward to working with you” can imply a job offer. 

Key takeaway: Choose your words carefully during the hiring process to help avoid misunderstandings with severe consequences. And if you must withdraw an offer, do it before you’ve impacted the candidate’s life.

2. Have another candidate ready to fill the vacant role.

When a job candidate doesn’t work out, the position remains open. Leaving open positions for an extended period can slow productivity, particularly if hiring for a critical role. Keep a backup candidate in mind as you rescind an applicant’s offer to minimize operational and process interruptions.  

To hire the best employee, you may review highly qualified candidates you initially passed on or conduct a new round of interviews. Budget your time and money thoughtfully as you rescind the job offer and select a new candidate.

How to communicate a rescinded job offer to a candidate

Because of the potential legal issues involved with rescinding a job offer, communicating the decision to the candidate requires caution, clarity and empathy. 

Inform the candidate as quickly as possible so they can resume their job search. Prompt notice may also mitigate ill will and potential legal actions. 

Here are six tips for notifying a candidate that you are rescinding the job offer:

1. Meet in person. If possible, meet with the candidate in person or via video conference to share your decision. You may make an initial informal phone call and follow up with an in-person meeting.
2. Share the reason why. If you have legal justification, share the reason or reasons why you’re rescinding the offer. Your attorney can help you draft a statement to read to the candidate.
3. Allow the candidate time to absorb the news. Chances are, the decision will come as a shock to the candidate. Allow them time to process the news. Listen to them. The candidate will likely ask you several questions. It’s best to stick to the statement or script you and your attorney created.
4. Do not overshare or make promises. Do not make promises of follow-up meetings or possible employment opportunities in the future.
5. Share a rescinded-job letter. Send a formal written letter as a follow-up to your verbal conversation with the candidate. The letter should be dated and explain the decision’s reasoning. If relevant, it should also state that you are an at-will employer.
6. Provide a follow-up resource or contact. Consider providing the candidate with your HR manager or legal representative’s contact information. 

Did you know?: If your business is sued by an applicant because of a rescinded job offer, get prompt, expert legal advice, don’t communicate with the person suing you, and stay focused on your business.

Common reasons why employers rescind job offers

Although each circumstance is different, there are several typical reasons employers rescind job offers, including the following:

• You discovered a candidate’s criminal history.
• A background check returned unsatisfactory results. 
• The candidate failed a drug test.
• Reference-check questions revealed negative information.
• The candidate falsified application materials.
• The candidate is bound to an active noncompete agreement.
• Your company experienced unexpected budget cuts.
• Your company faced canceled or postponed projects or contracts with customers.
• New executive leadership was installed, or there was a lack of leadership support for the selected candidate.
• Unfavorable post-offer interactions with the candidate indicated severe concerns with their comportment and skills (e.g., lack of professionalism), making them seem like a bad hire.

Tip: Consider using one of the best background-check companies to narrow your search to the most well-qualified and viable job candidates.

Sample rescinded job offer letter

This rescinded job offer letter sample is brief, factual and to the point. This sample is intended to provide an idea of what to include. Before sending any official letter, check with your attorney to ensure it’s legally viable. 

[Date] 

[Candidate’s address]

[City, State ZIP code] 

Regarding: Rescinded Job Offer for [company’s name] [job title] 

Dear [Candidate name]: 

On [date], you received a job offer for employment with [company name] as [job title]. As stated in your offer letter, employment with our company was contingent upon successfully completing [pre-employment qualifying criteria, e.g., a background check], as well as [list additional pre-employment qualifying criteria]. 

During our hiring process, we [e.g., were unable to substantiate information you had provided regarding your previous employers]. 

This letter, therefore, serves as formal written notification that your contingent offer of employment given on [date] with [company name] has been withdrawn.  

We wish you the absolute best in your future employment endeavors. 

Sincerely, 

[Name of company representative]

[Title] 

Rescinding job offers the right way

You might have to withdraw a job offer for several reasons. Some are out of your or the candidate’s control, while others result from conscious decisions on either party’s side. No matter the justification, rescinding an offer the right way is key to avoiding future legal and financial issues. 

Patrick Proctor contributed to the reporting and writing in this article. 

Recall or replace a sent e-mail message

When you recall a message, the sent message is retrieved from the mailboxes of recipients who have not yet opened it. You can also replace the message with a replacement. For example, if you forgot to include an attachment, you can try to revoke the message and then send a replacement message with the attachment.

Message retraction is available after clicking Send and is only available if both you and the recipient have a Microsoft 365 or Microsoft Exchange 9 email account0007 in one organization . For example, you can’t revoke a message sent to or from a Hotmail, Gmail, or live.com account.

Revocation and replacement of message

1. In the folder area on the left side of the Outlook window, select the Sent Items folder.

2. Open the message you want to recall. Double-click a message to open it. If you select a message so that it appears in the Reading Pane, it cannot be retracted

3. If you have the Classic Ribbon, on the Message tab, select Actions > recall this message .

   If you have a simplified Ribbon, go to the Message tab, and then select More Commands (…). Hover over Actions and select Withdraw this message .

   Notes:

   • If you don’t see the Recall message command, you may not have an Exchange account or this capability is not available in your organization.

   • You can’t remember a message protected by Azure Information Protection.

   • You can’t remember the message in Outlook on the web.

4. Set the radio button to delete unread copies or delete unread copies and replace them with new messages and press the OK button .

5. If you are sending a replacement message, compose the message, and then click the Send button.

Recall check

The result of message recall depends on the Outlook settings on the recipients’ computers. The table below shows five scenarios:

Important:
Office 2007 is no longer supported by . Move to Microsoft 365 to work remotely from any device and continue to receive support.

Update

Revocation and replacement of message

org/ItemList”>

1. In Mail view in the Navigation Pane, click folder Sent .

2. Open the message you want to revoke and replace.

3. On the tab Message , in the Actions group, click the Other actions button and select Recall message .

4. Click delete unread copies or delete unread copies and replace them with new messages .

   Note: If you are sending a message to a large number of users, you may need to clear the Report revocation result for each recipient check box.

5. If you are sending a replacement message, compose the message, and then click the Send button.

If you don’t see the Message Recall command, you probably do not have an Exchange Server account or are not using Microsoft Office Outlook 2007. They are required to recall messages.

This can be found in dialog box Account settings in Outlook.

1. From menu Tools select item Account settings .

2. On the E-mail tab , column Type lists the account types for each item.

Recall check

The result of retracting a message depends on the recipient’s settings in Microsoft Outlook. The following describes various situations, including the recall of a message sent to a Microsoft Exchange public folder.

Revocation or replacement of a sent message

Create and send a message

Outlook training

Create and send a message

Create and send a message

Recalling or replacing a sent message

• Welcome to email
  

  Video

• Create, send and reply to email messages
  

  Video

• Create an email signature
  

  Video

• Sending and receiving attachments
  

  Video

• Recalling or replacing a sent message
  

  Video

Further:

Email Management

Check out how it works!

If you and the recipients of your messages use Microsoft Exchange or Microsoft 365 in the same organization, you can revoke or replace sent messages.

Important: If this is a MAPI or POP account, the message cannot be recalled.

1. Select folder Sent .

2. Select or double-click a message to open it in another window.

3. On the File tab, select Details .

4. Press Resend and recall message > Recall message… and select one of the two options.

   org/ItemList”>

   1. To recall a sent message, set radio button delete unread messages .

   2. To replace the sent message with a new one, select the radio button to delete unread copies and replace them with new messages .

5. Select the Report revocation result for each recipient check box.

6. Press button OK .

   Note: if you select to delete unread copies and replace them with new messages , the original message will open in an editing window.