Liability on Job Offer Pulled
sstogner
23 Posts
We have a situation where a job offer was made, the candidate put in their 30 day notice at the other job, we're at the 11th hour and executive management has asked put the new hire on hold, as they are looking at the overall organization picture to assess whether the position is actually needed now. The question is, because the candidate put in their 30 day notice, leaving their current job for what was to be their new position with our organization, and now that position is in question, is there any liability risk by pulling the job offer, as they wouldn't have the new job OR their old position? Any thoughts would be greatly appreciated. Thanks!!
sstogner
sstogner
Comments
I would inform him immediately so he can rescind his resignation at his current employer and, hopefully, retain that job. If he incurred costs such as relocation expenses, etc., you should consider reimbursing him.
Even if you didn't, he still may sue for breach of contract or covenant of good faith and fair dealing, especially if he suffers financial loss because he relied on your company to follow though with its offer of employment. For example, if it's so late in the hiring process that he's resigned his current position and they can't or won't let him stay and he's out of work and suffers financial hardship.
Which brings up another issue - public relations. Does your company want to become known as an employer that pulls the rug out from under new hires? If your company fails to hire him, you may have recruiting issues down the road.
I don't mean to be a Negative Nellie but there is often more to these decisions that it looks like on the surface. So, if I were in your shoes, I'd seek qualified legal counsel before rescinding an offer of employment, particularly if it's late in the process.
Sharon