Navigating Offer Withdrawals: What Steps Should Employers Take During a Market Recession?

navyagc
Hi,

In a situation where an employer wants to withdraw the offer before the candidate is expected to be onboard, is there a process that needs to be followed? The reason to withdraw the offer may be due to the market recession affecting the business after the offer release, freezing recruitments as well as any further joinees, decision made on economizing cost post-offer release, etc. Kindly give me your valuable inputs.

Regards,
Navya
BADLOOSER
Offer Validity Period Is Mentioned In Every Offer Letter. You can immediately communicate concern of a change in your intention and request to ignore the offer letter due to the change in circumstances your decision has changed. No wise person will force you to adhere to your offer letter if he or she realizes his/her future is in the doldrums with your company. Best regards, Badlu
rajeevdixit
Hi Badluji, :-D

If the offer is accepted by the candidate and if he has already resigned from his previous organization, then what would he do if the offer is cancelled after his resignation? He will be losing both. :(

Sir, please clarify.

Regards,
Rajeev Dixit
BADLOOSER
Certainly! Here is the revised version of the text:

Obviously, if a candidate has resigned under the pretext of this offer letter, Management shall continue with the offer because it's a matter of business ethics and legal aspects too.

No offer can turn out to be a nightmare for the candidate, resulting in the candidate suddenly finding himself/herself at a crossroads because of deception or ill fate of the company that offered him/her a job.

A job offer must be honored in the right spirit instead of leading to litigations and disrepute for the company.

Badlu
salilsharma
Hi,

If it is in the case of freshers, it is okay to communicate this to students through the institute, mentioning the reasons for deferment or cancellation of an offer. Since the student may have very little to lose, apart from a setback to his startup career aspirations.

But in the case of lateral hiring, companies must honor whatever the case may be; eventually, the candidate is hired because there is or was a need. Even if the company takes him in an economic meltdown scenario, the candidate will himself start looking for an alternative after joining. At least this will protect the ethics of the organization.

I am sure this type of situation will occur in the case of Middle or Junior cadre employees only, for which shedding some money will be peanuts for the company but of huge value for the employee.

Regards,
Salil Sharma
99102 47001
K.Ravi
If the candidate has resigned, then you need to pay him the specified monthly salary until he gets a new job. That is your responsibility.
Vinmind
Dear,

The offer can be withdrawn as per the conditions detailed in the offer letter only, or compensation is payable if withdrawn. All applicability is for the company that wants to follow ethics and rules/regulations.

Conditions are set while offering the offer, and action can be taken against any of them, e.g.,

1. Before the specified date, you have to join -- non-joining can result in the offer being canceled.
2. Feedback from your references/market -- a negative feedback from the references/peers, etc.
3. Any breach of the applicable laws of the country.
4. Any false information regarding qualifications provided by the candidate.

Regards
mitiam
Dear Navya,

This is a critical case, and you need to handle it with utmost care. To the best of my experience, first speak to the concerned person in person or over the phone. Be cautious while choosing your words.

Secondly, if the company policy permits, you need to pay them the notice period. For instance, if you have a one-month notice period policy, then you should reimburse them for one month's notice period pay. Make sure you file all emails and communications with the employee regarding this matter in hard copy for future reference.

Regards,
Miti
vengadajalapathy
Hi,

Could someone please post a sample withdrawal letter rejecting the offer from an employer to the candidate?

Thank you.
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