According to the Office for National Statistics, the number of jobs being recruited for was around 857,000 between June and August this year. That’s a lot of job offers being made… But are you making your job offer to the right person?
Once you’ve completed the recruitment process, make sure you think long and hard about making an offer of employment, as withdrawing a job offer comes with risks. An offer of employment could be a binding contract if it’s accepted by your chosen candidate.
But don’t worry, we’re here to help. Here’s an overview of the risks of withdrawing a job offer and where you need to be really careful…
In this article, we cover:
- When an employee withdraws
- When a contract of employment is formed
- The risks of withdrawing a job offer
- Minimising risks when withdrawing a job offer
- How we can help
When is a contract formed?
A job contract kicks in when someone offers you a position and you accept it, whether that’s done in writing or just over a chat. So, if you make a job offer and the candidate says yes, pulling that offer later would be a breach of contract. That means the candidate could potentially ask for damages, which usually means they’d get paid for the notice period they would have had if they had started working.
Now, if you make an offer but withdraw it before it’s accepted, there’s no contract yet, so you’re in the clear. You can back out without any issues.
If the job offer comes with conditions—like needing good references—you can also withdraw it if those aren’t met. Just make sure to clearly lay out those conditions when you make the offer, for instance, “This offer depends on satisfactory references.”
What are the risk of withdrawing a job offer?
There’s a real risk in pulling a job offer. Take the case of Snozone Ltd, for example. They used a recruitment agency to find a candidate, and when the candidate verbally accepted the offer, even without agreeing on salary or start date, a contract was formed. When they later withdrew the offer, they had to pay the candidate for breach of contract, equivalent to what the candidate would’ve earned during the notice period.
What should employers do?
To avoid these situations, it’s a good idea to get all the details in writing. This way, you won’t accidentally make an offer before everything’s agreed. Also, be careful about why you might withdraw an offer. Avoid anything that could look like discrimination based on age, religion, gender, or any other protected characteristic.
It’s also risky to withdraw an offer after receiving a medical assessment or if you learn a candidate is pregnant. Always document your reasons for withdrawing an offer; it could help you if there’s ever a claim.
What if the employee changes their mind?
If an employee decides to back out after accepting an offer, that’s a breach of contract on their part. Whilst it’s rare for employers to seek compensation in these situations, it can be a big deal if the person is in a senior role and their change of heart causes financial strain. Even if it is a breach, it might not be worth the hassle of chasing compensation since you’d have to prove you suffered a loss.
In short, be clear and thoughtful about job offers to avoid complications down the road.
How we can help
If you’re feeling uncertain about making job offers or working through potential contract issues, we’re here to support you. Our team can provide guidance on crafting clear job offers, understanding legal obligations, and handling any tricky situations that arise. Whether you need help with documentation or advice on best practices, just reach out to our friendly team on 0330 223 5253 or office@fitzgeraldhr.co.uk
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