Hiring the perfect candidate who suits the job description and works well within the organization’s ethics and culture is a tricky job. Presenting a job offer to a well suited candidate is one of the most satisfying parts of an HR manager’s job. 

But, what if they have to rescind offer? A job offer rescinded often can be a tricky thing to handle, especially because it comes after an employee being exhilarated and grateful upon being accepted. There are times when the news has been shared in professional and personal circles as well. 

While it may not negatively impact the organization, the rescind offer may not be taken well by the candidate.

How must an HR rescind offer so that there is no goodwill lost and the candidate and company can part on cordial terms? This blog will discuss how HRs can rescind a job offer, a rescind offer letter template, and anything else you may need.

Why is a Job Offer Rescinded?

There can be many reasons for a rescind offer. Sometimes, it is due to an internal miscommunication, and other times it may be due to the candidate being untruthful. Mostly, these reasons for a job offer rescinded can be bifurcated into internal reasons and external reasons.

Some of the internal reasons that can lead to a job offer rescinded are:

  • Position getting double filled
  • Position going on hold
  • Candidate’s package exceeding the hiring budget
  • Offer sent to the wrong candidate
  • Biased hiring, for instance, based on a personal association rather than talent
  • References not checked before hiring

Apart from those mentioned above, certain external reasons can also lead to a job offer rescinded. These are:

  • When the candidate lies about skills and job experience
  • In the event of candidate’s social media behavior being objectionable
  • When the candidate does not pass a drug test
  • If the candidate’s work history is a fabricated one

Reasons to rescind offer are quite basic. However, no matter what it is, a job offer rescinded is quite challenging to communicate. At the end of the day, it is still a decision that can spoil potential professional relationships. How does one do it without offending the candidate?

How to Rescind Offer in the Best Way Possible?

A rescind offer doesn’t work the way regular job offers or emails do. These communications need to be handled in an extremely delicate manner because you are taking back a word you’d already given. For whatever reason, it will affect a person’s life, so it needs to be done in a respectful way that does not hurt the candidate personally and professionally.

Step 1: Inform Over a Call

Many HRs commit the mistake of skipping this step. Always remember that the candidates are not just ‘resources’ for you to fill positions. They are living, breathing humans, and you are giving them information that may antagonize them and maybe even traumatize them. Before sending out the official email, a one on one conversation regarding the rescind offer is better as it will not only be a conversation about the job offer rescinded but also how they can turn this incident around for themselves.

Here are a few things to remember while communicating the news of the job offer rescinded:
1) Make sure the candidate knows that the conversation is confidential
2) Be transparent as to why are you taking this decision
3) If your organization has a policy, then try and find the candidate an alternative placement

Step 2: Send an Official Mail

Once the conversation is over, send an official mail for the job offer rescinded. Ensure that you cite it is not a contract like the original offer letter was. This one is more like a notice. Also, it serves as a protection against any legal action.

However, before getting here there are some things need to be considered.

What are the Things to be Considered Before Rescinding a Job Offer?

rescind offer

Here are a few things to keep in mind before rescinding a job offer:

  • Make sure your employment applications meet all the conditions mentioned in the job position. The terms and conditions should state that inability to meet the conditions can lead to the rescinding of the job offer
  • Fulfill the conditions mentioned above or contingencies before the candidate joins and starts their tenure as an employee
  • Stay in the loop of all business decisions to see if it will affect the hiring plan
  • If you get to know that a job is held or nullified, communicate the same to the candidate

It is essential to consider such things before rescinding a job offer and being honest about their communication in the absence of these legal repercussions could happen. The candidate may sue for breach of contract, discrimination, or even fraud. Thus, as mentioned earlier, job rescinding is a delicate path to tread. Be gentle and descriptive in your communication. It should convince the candidate that you had no other option and that you are doing this in their best interest.

Rescind Offer letter template

Now that you know about job rescinding and how to do it effectively, it is equally important to know how to frame a rescind letter. Whether it is a job offer rescinded after a credit check or after a failed background check, a rescind offer should be communicated in the best way possible at the earliest. Here are a few rescind letter templates that can help you out.

Rescind Offer Letter Template #1

Dear XYZ,

As per our telephonic conversation, we regret to inform you that the offer you received from (company), for the position (position), now stands rescinded. We have taken this decision after careful consideration. Note that the information is completely confidential and your acceptance of the offer does not constitute any binding contract. The organization, thus, is under no legal obligation to employ you or compensate you.

Do not send in a signed copy of the offer letter, if you haven’t already done that. In case of any further queries, feel free to connect with me.

Thank you for your time and understanding.

HR Director

Rescind Offer Letter Template #2

Dear XYZ,

The offer letter that you received from (company name), states clearly that the offer stands valid upon the completion of certain contingencies. One of those is a successful background check. With your authorization, we performed a screening. Unfortunately, you did not meet the requisite criteria, basis the information we received.

The organization has therefore decided to rescind your offer of employment.

Please know that there is no legal binding on you or on the company to go ahead with the offer letter. The organization is under no obligation to employ you or further compensate you for it. Rest assured that this information will remain completely confidential.

In case you wish to discuss this in detail and require any guidance, feel free to get in touch.

Thank you for understanding.

HR Director

Rescind Offer Letter Template #3

Dear XYZ,

As per our telephonic conversation, we have to, unfortunately, rescind your offer. There are certain conditions in our offer, a successful reference check being one. However, upon running yours, we found certain glaring discrepancies that we cannot ignore. Thus, the offer for you at (company) in the position of (position) now stands rescinded. Please note that it is no more the organization’s obligation to hire you or compensate you.

If you have any questions, do get in touch with me. I’d be happy to assist.

Thank you for understanding.

HR Director

Do You Need To Have Your Rescind Offer Guidelines in Place?

Yes, of course. Human Resources should be adept in dealing with the existing employees and the potential ones. Interviewing and hiring new candidates is an integral part of the job, and of course, this entails handling rejections. Only, rescinding a job offer is infinitely harder than rejecting a candidate.

One must have knowledge, tact, and skill to tackle the situation to not reflect poorly upon the company. Not only that, a job offer rescinded should not legally backfire on the organization. For that, one has to ensure that the offer letter has all the necessary fine print included. Transparent and appropriate conversation with the candidate helps as well.

After all, rescinded contracts can lead to bruised human egos and broken dreams. While having legal immunity helps. Treating them with dignity while communicating the job rescinding, and going out of your way to help them find a suitable placement can help repair their goodwill.

What are the job rescind offer policies at your organization? Do tag us and let us know at @HarmonizeHQ.