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Is A Rescind Offer Illegal? Find Out!

| February 12, 2024

A rescind offer is kind of like the opposite of a job offer. Let’s say an employer takes an action to not hire a candidate. However, this is someone whom they already offered the opportunity.

Now let’s say that the employer had their reason to rescind the job offer. A controversial past, felony conviction, or just a bad reputation.

After all, just because they gave you a verbal offer, it is not legally binding them to give you the job.

Thus, this is what a rescind offer is. In this condition, an employer takes back the job that they offered. Problems arise when the person rescinds the offer due to unethical and illegal reasons. One such example is when they rescind the offer due to different types of discrimination.

In this article, we will discuss what a rescind offer is. Additionally, we will shed light upon the acceptable and unacceptable grounds for rescinding an offer. So, let’s begin 

Is A Rescind Offer Common?

Is A Rescind Offer Common

In one word, no, it is not really common to see many rescinded job offers. However, if you have a rescinded offer in your hands, it is no cause for alarm. Companies will have to keep up with changing times. Their needs and requirements may change as well.

Thus, rescind offers are more likely to reflect a change in company policies. They are in no way a statement of your capacity. Besides, there are great jobs out there. 

Therefore, all you need to do is create a good CV, get some skill upgrades, and bam! You are good to go.

What Does Rescind Offer Mean?

A company may withdraw the job offer they gave you. It can happen a short while after they made the offer. In other cases, they might withdraw it before your start date. This is what we call a rescind offer.

Rescind Offer Or Not: You Are The Priority

Learning about the withdrawal of your new job can be a tad difficult to deal with. It is normal to feel emotional, upset, down, and disappointed. We understand that you may even worry about what you are going to do next.

However, it is important to acknowledge these feelings now more than ever. Reflect on what went wrong. Stand up, dust yourself, and take that first difficult step. Remember, at all points, prioritize your mental and physical well-being.

Moreover, see this as an opportunity to re-evaluate your goals and career choices.

As I have talked about, some rescind offers are legal. Whereas rescind offers on illegal grounds can get you compensation from the court (after you sue the employer). Let us check out the legal grounds.

If You Provided False Information

As an employee, it is your duty to provide true information to your employer. Now if the candidate gives misleading information during applying, it is fraudulent behaviour. Hiring the wrong person due to false information could even harm the company later on.

Therefore, this is a legal crowned for a rescind offer.

Adverse Information Through Background Check

We all know that job offers come with extensive background checks. While the company carries out this check, they may come across negative information about the candidate. For example, if they find out that the candidate carried out fraud in their previous organization. Therefore negative results from a background check can lead to a rescind offer.

When The Candidate Fails In Drug Tests?

A company will obviously not want to hire a person who is actively a drug addict. Neither will they want to hide a person who lied about their Medical records.

For example, a medical test shows that the candidate lied about being disabled. Therefore this is sufficient grounds for a rescind job offer.

Rescind Job Offers Under Terms And Conditions

While hiring, a company might very clearly state that the job stands with certain conditions. Now if these conditions are no longer present, the company may withdraw the job offer.

The Employee Carries Out Illegal Activities

We have all watched Narcos. Now, would a company ever want to hire Pablo Escobar? No. Therefore, any individual who shows an active involvement in criminal behavior is not a model employee.

Thus, a company can withdraw a job offer if they find out about the criminal behavior.

If The Company Is Running At A Loss

Financial circumstances can change very often. The company may run into difficult circumstances overnight. In such a condition, they may withdraw a job offer because they no longer have the ability to pay.

Apart from this, if a candidate fails to show that they can do the job, the company can withdraw the job offer. This is basically the concept behind probation periods. However, the Supreme law of the land prohibits discrimination in all spheres, including employment. Employers cannot use these grounds to promote rescind offers due to discrimination.

Now that we know the legal grounds which allow rescind offer, let us move on.

How To Rescind A Job Offer?

Now, let us discuss rescind offer from the perspective of an employer. How can an employer rescind a job offer legally? Well, here is how.

While carrying out a rescind offer, try to follow the following steps.

  • Firstly, try to stay within the law. The reason for revoking the job offer must be lawful.
  • The next step is to inform the candidate. However, before sending an official offer letter, ensure that you use a registered post service.
  • Just to be safe, send the withdrawal via electronic mail as well.  Ensures that the job offer withdrawal carries minimal risk. Even if you do it verbally, be clear and unambiguous.
  • Moreover, in this letter, try to explain the reason behind your actions. Clearly state why you are choosing the withdrawal.
  • You should also allow discussion. This is an offer to the candidate to allow them to ask questions about the decision.

Lastly, send a formal letter. The letter should include a proper greeting, the candidate’s full name, and a clear explanation for withdrawing the offer.

To Conclude

Now that we have come to the end of our article let us do a quick recap. A rescind offer is you’re your employer withdraws the job offer before joining or shortly after. However, the withdrawal should be due to legal reasons. The Universal Declaration of Human Rights calls for complete prohibition of discrimination in the employment sector.

Therefore, if you feel that the withdrawal took place under illegal circumstances, you can take your employer to court!

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nilanjana basu
nilanjana basu

Nilanjana is a lawyer with a flair for writing. She has a certification in American Laws from Penn Law (Pennsylvania University). Along with this, she has been known to write legal articles that allow the audience to know about American laws and regulations at ease.


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