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Can Companies Rescind A Job Offer?

Posted by Cliff on from the now-THAT-sucks dept.

Alfonso Espitia asks: "Just had a question for the general audience out there. I recently got recruited by a company, went to their job fair and the whole nine yards. After the fair I was sent a job offer, I then accepted filled out all the paper work and sent it back. I was given a start date and everything. About a week and a half or two I got a message on my answering machine saying 'About the offer that was extended to you...it is now rescinded.' Can they do this? All the paper work was filled out. I think I was more in shock that they would leave a message like this a few days before Christmas. Instead of just saying "It's urgent that we get in contact with you, can you call back?" Has anyone else had an experience like this? It's a -really- big company, so I didn't mention their name. Also, what can I do about this? Anything? I haven't tried to contact them yet, my recruiter is on vacation 'til the 2nd." I always thought an offer letter was a clear intent to hire, and that companies can't do this without penalties. Has this happened to anyone else? Is there anything Alfonso can do in this situation?

4 of 21 comments (clear)

  1. Illegal? No. It's not even unethical. by rjh · · Score: 3

    As part of your agreement, you and the company both agreed that the employment was at-will and either party could terminate it at any time for any reason, or no reason at all.

    So this company decided to act in accordance with the agreement you struck. Where's the question?

    Can they do this? Certainly. After all, you agreed to let them do it.

    Is it ethical to do this? Certainly. After all, if it wasn't ethical, you shouldn't have agreed to let them do it.

    Where's the question here?

  2. generally yes, but not after it's accepted, but... by jqh1 · · Score: 3
    As the replies above indicate, someone who makes an offer to form a contract (in this case a contract for employment) can revoke the offer (by saying something like 'I revoke!' or otherwise indicating revocation) before it is accepted. Several rules that aren't worth discussing here come into play to determine whether and when an offer is accepted and a contract is formed.

    It sounds likely, though, that you had accepted a valid offer, forming a contract for employment with the company, and, for this reason, there was no longer any offer for the company to rescind (revoke), despite what the person who left you the message may have thought. If you really want to answer the question of whether a contract was formed, you need to carefully examine all the documents you signed to see whether there was still some decision that needed to be made by the company before you were actually hired. If there was, and no contract was formed, you're doomed.

    If a contract was formed then, as yucky as it sounds, what happened legally is that you got terminated. As the other replies have indicated, the default rule in most states (assuming you're in the USA) is employment at will, which means you probably have no recourse unless your employment contract indicates otherwise -- such as providing for a 6 month term of employment or something like that. Of course, the state/country/jurisdiction you're in may provide additional protection for you, if it wasn't properly countered in the contract.

    Ultimately, of course, if you really want to examine your alternatives this is question for your lawyer. Or - try a smaller company - I've always had better luck with them.

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  3. Why not? by platos_beard · · Score: 3

    Job seekers back out of "agreements" all the time. Seems to me that its just fair for companies to be able to do the same thing.

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  4. Bummer by kevin42 · · Score: 4
    In most places in the US work is considered "at will", so unless you can show real financial harm (ie. you relocated at your own expense with the promise they would reimburse you) you probably are out of luck.

    "At will" employment means they can let you go whenever they want with no advance notice or reason anyway...on the other hand you can quit with no notice also. In other countries you have to give 30-90 days notice if you want to quit or fire someone.

    But this is the good old USA, so even though IANAL I don't think you have any recourse.