Recruitment/talent Acquisition, Career Counselling
Umesh HR
Hr, Recruitment

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Here is a query regarding a situation that arrived recently.

A Pvt. Ltd. company in Delhi/NCR has selected a candidate for a particular opening in its recruitment department and issued her the 'Letter Of Intent'. The candidate after receiving the Letter of Intent also put her papers and served the notice to the present employer. Now this company which offered the LOI sent her a mail stating that 'they regret to inform her that they cancel her appointment in the company due to the report of reference check.'

Now my query is that -
Is it a right practice ?

She (the Candidate) already has served the notice period as she got LOI. Now her appointment in the new company is cancelled. She has lost the previous job and would not be getting the job in new company also.

Even if the reference check was not as per the expectation regarding her performance etc.

yet the new company had the option of Probation Period during which the necessary action could have been taken.

Please ponder and suggest something for her.

Best Regards


From India, New Delhi
Dear Mr. Umesh,
Letter of Inetent is a temporary document that demonstrates a willingness to do business. It doesn't authorize work, but rather shows that there is the potential for a work. In which case, serving notice to LOI is like employer has not provided any confirmation to the employee to work in such case the notice period is applicable. During the period specified in LOI, the employer can proceed for ref checks and other formalities and also have the right to terminate the employee (if any) inapt is found.
Probation period is given after appointing the employee in the organization. The purpose is to evaluate the employee's performance. During the probation period you will be required to achieve certain goals in order to become permanent. The benefits would be same as that of a permenant employee. I suggest her to read what she has been offered and graft out appropriately.

From India, Visakhapatnam
Hello Umesh,

Prima facie, I think the Pvt Ltd company you referred to have their recruitment processes all wrong--lacks foresight & concern for the 'other'.

Some one in HR @ their end SHOULD have visualized such a scenario. On what basis can they expect a prospective employee to resign the present job [serving the Notice Period comes later]?

Many companies now release the Offer [or LoI in this case] ONLY AFTER the BC is done successfully. That takes care of the situation @ both ends.

Some companies release the Offer before the BC, but tell clearly to the candidate that it can be withdrawn if the BC comes-in negatively.

Coming to the present case, does the LoI have anything mentioned that the LoI will be cancelled in the case of a negative BC?

Also, did the HR mention as to 'what' did they find out in the report of reference check that forced them to cancel the LoI--if not in writing, at least verbally? [Here I am presuming that what they mentioned is 'true' & didn't 'use' this point to cancel the LoI for extraneous causes--hope you get what I mean].

Frankly, whatever be the replies to the queries above, I think this candidate also has to bear a part of the flak--she should have taken better care to realize the consequences IF the BC report is negative.

At this point of time, the only option she has is to look out for another job ASAP.

Also, it would serve her better if she analyses the reason(s) WHY the BC Report is negative--what happened here COULD get repeated later AND land her into a BIGGER soup, IF the negative aspects that came-out in the report are serious.

Unless these details are known, I am not sure if anything can be suggested reg this aspect.

Reg your point about the Probation Period, Sharmila Das has covered the right perspective about this.



From India, Hyderabad
Dear Ms. Sharmila & TS,

Thank you for providing your feedback.

The LOI does not have any thing in written that it can be cancelled if BC report is negative. It actually carries the future joining date.

The HR in the cancellation mail did not mention the point as to what feed back was provided during reference check.

The candidate after receiving the cancellation mail spoke to HR of the new company and inquired about the situation and the HR told her that one of candidate's colleague only has given such a feedback. And the reference check was done verbally with that colleague of her.

How funny it is to know that the reference check is done with a colleague and not with any Senior / TL / Manager.

And of course, this 'Particular Reference' for reference check was not provided by the candidate.

Now there can be so many things like -

The colleague might not be comfortable working with this candidate. OR

Colleague might have some personal issues with this girl... Etc.

And my point regarding the 'probation period' was just to be a little caring about the carrier of this girl. As this Pvt. Ltd. Company already had sent the LOI and there were only 3 days remaining in joining they could have gone for proper BC. And in case the candidate had already served the notice period then being a little generous they could have taken her and observed, advised and support her to improve in her performance.

What you people suggest now?



From India, New Delhi
Dear Mr. Umesh,
Lets talk the praticality now...since this girl has brazen-out situation, she should now be taking a li'l care of providing references of the right people.
To my understanding the BC done with some collegue is a conjecture to me. However, in that perspective the Pvt. Ltd company has not done their part aptly.
Now, let the lady know that she has done her blameless job and she deserves to put up herself in a good company.

From India, Visakhapatnam
Hello Umesh,
What I mentioned earlier reg the available options still stands good: "look out for another job ASAP".
There's also another option--whether it's practical or not is for your friend to judge/figure-out: Rejoin the earlier company.
Looks like this company you refer to has a lot of work to do IF they want to streamline their HR/Recruitment practices.But again, it's for 'them' to figure-out.

From India, Hyderabad
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