Retraction of job offer before hiring?

Marcia

One of our supervisors made a verbal job offer to an outside candidate who was well known to a trusted former employee. The candidate accepted, quit his current job, and reported to our company to do the hire paperwork. Before the supervisor began the paperwork, several hourly employees pulled him aside and said that if this person was hired, they would quit (these employees had worked with this candidate in previous jobs). One woman even burst into tears. The supervisor was shocked and told the candidate that he'd have to wait to do any hiring paperwork and sent him home without hiring. We've asked the prospective employee to come and meet with us this week to talk.

What are our options in this situation? I'm really at a loss as to what is legal, ethical, good business practices, etc. Help, please!

Theresa Gegen TX

[font size="1" color="#FF0000"]LAST EDITED ON 10-29-02 AT 02:48PM (CST)[/font][p]I think you need to find out what the problem was. (Why did that employee burst into tears!!) Then evaluate whether you need him at the company.

As far as whether the prosective employee can sue your company, the answer is probably "yes", he could sue for promissory estoppel -- you promised me a job and I acted in reliance upon it (quit my other job, etc). It is unclear what the exact promise was, but you can always argue that you promised him at will employment, which he shouldn't rely on. He may also argue that there was some sort of contract from the oral statements (although Texas courts have been very skeptical of these type of oral employment contract claims).

Even if there is some risk, there are worse things that being sued.

Good Luck!

Don D

Equally as large is the problem caused by a policy that allows supervisors to make verbal job offers. It points to inconsistency and you have no idea what promises the supervisor made in his offer. Our policy requires that job offers be made only by Human Resources and in writing with the normal contingencies of background check, physical and drug-screen. Had you put that in place, that wording might have allowed you to rescind based on the subsequent background check which might include verified information provided by current employees. Theresa's comment about 'At Will' is interesting. I thought 'At Will' applied only to termination of employment relationships by either party for any legal reason or none at all, not rescinding an offer of employment.

Rockie

I agree with Don that job offers should only be made by Human Resources. We put everything in a written letter of hire, along with the proviso that employment offer is contingent upon a background check (which they sign off on). The letter of hire is signed by the applicant and mailed back to us.

It's a loose cannon allowing supervisors to get into making offers of employment, especially verbal. It's also dangerous to allow current employees to dictate who you may or may not hire. Unless there is a good reason (such as harassment, etc.) in this person's past, I can't see why anyone would "burst into tears" at the prospect of hiring someone.

We had a similar case where we were merging with another practice and as a condition of the merger, we absorbed their employees into our practice. One supervisor stated that if a certain person came on board, that she would start a petition to get rid of this person as she did not like them (previously worked with this person). She was told in no uncertain terms, if a petition was to be started, that she would be out the door pronto!

In your situation, this individual has incurred a loss(his job) based on an oral promise of employment. I believe he would have a case against your firm if he was denied the promised job just because an employee "teared up" at the prospect of working with him. Before I denied him the job, I would certainly check with your legal counsel as to the best way to handle this.