What is the risk of withdrawing an offer of employment?
All sectors are finding it difficult to recruit and the state of the labour market remains challenging. Recruiting a new employee is costly and time consuming and the prospective employee will have gone through a process of application, interview and assessment.
Regardless of how thorough the recruitment process there may be times when it is necessary for the employer to withdraw the offer of employment. This may be due to lack of funding, a downturn in trading conditions, unsatisfactory references, or agitation against the new employee due to their reputation.
Whatever the reason the discussion will not be an easy one and made more difficult if the individual has handed in their notice with their current employer.
Offers of employment can be made unconditional or with certain conditions attached to them. The offer of employment can be made verbally or in writing. Once accepted by the applicant the main risk to the employer is breach of contract even if the person has not started working for the Company.
It is recommended that any offer of employment is made in writing and conditional. The offer of employment letter will state the conditions, for example, satisfactory references, a DBS check, proof of qualification, subject to funding for the role and the right to work legally in the UK. A conditional job offer will help protect the employer against future legal action should a withdrawal be necessary due to failing to meet one of the stated conditions.
As well as the potential claim for breach of contract there may also be potential for a discrimination claim if the reason the employer withdraws the offer is due to the reputation of the future employee. Therefore, it will be necessary for the employer to show objective grounds in reaching that decision.
When an offer of employment is withdrawn, the employee is normally entitled to notice pay. The amount of notice pay will be dependent on the terms of employment offered.
If you require assistance or further guidance with recruitment or preparing terms of employment please contact SOS-HR 01473 276170 or email us at soshr@sos-hr.co.uk