Can a Company Cancel a Job Offer After Issuing It? Urgent Help Needed!

I am an HR professional at a company. As decided by the management, I selected a candidate for the position of Accountant, and the person is supposed to join next week (offer letter issued). This morning, the management informed me that the appointment of the accountant has to be stopped as they don't need a person now.

Can an Organization Deny Employment After Issuing an Offer Letter?

Please let me know if an organization can deny employment after issuing the offer letter. If yes, how can I handle the candidate? Please help me; it is urgent.

Regards

You need to write to the candidate along the following lines:

Withdrawal of Offer Letter

Dear ___________,

I regret to inform you that, due to circumstances beyond my control, the recent offer letter we sent you has to be withdrawn as the post itself has been withdrawn.

May I apologize for the inconvenience this may have caused you and take this opportunity to wish you every success for the future.

Yours Sincerely,
For and on behalf of (Company Name)

I hope the above helps.

Regards,
Harsh

There are TWO aspects to your situation. One is to cancel the offer made, and Two (which is more important from the HR perspective) is to handle the candidate from the human angle.

Like Devaki mentioned, what if the candidate already resigned? If he hasn't, then frankly, you have a lesser problem. But IF he has already resigned, then you need to show him ways of withdrawing his resignation and continuing in his present job.

First, call him and explain the situation—during the process, please DON'T put your company in a poor light. That's NOT good HR. He may ask you if this is a temporary situation and the timeframe when the position would be revived—please keep an answer ready if asked.

The letter mentioned by Harsh is more for the sake of formality, record/documentation (just in case the candidate is one of those who take advantage of the lack of documentation)—it can follow through email or postal letter later.

Now coming to the other angle of the issue/problem. It does cast your management in a poor light—they didn't seem to have applied their minds when deciding to hire for this position. Except in exceptional circumstances, hiring decisions wouldn't get canceled within days.

Since you are the HR, suggest keeping this aspect in mind when you hire the next time—for this or any other position. Please be clear that all factors have been considered by the management BEFORE you were given the clearance to begin to hire (while that may not be your concern, please remember that it's YOU who is carrying the baby, so to say).

All the best.

Regards,
TS

If this is the situation, ask your boss or management to reconsider their decision, especially if the candidate who was to join your company has resigned. That individual is in a difficult position, and your company's management is responsible for addressing this. In fact, your HR Head should talk to the HR Head of the candidate's company and try to help the candidate get their job back. If the candidate is not taken back by their current company because they have already resigned, then the responsibility lies with your company for not providing them with the job. Ethically, this is wrong and incorrect. If your company does not resolve this, imagine that tomorrow it could be anyone, even you. Be prepared. If your company gives the candidate their job, it's a good company; otherwise, your company lacks ethics.