Can you withdraw an offer of employment?

Withdrawing an offer of employment is a task nobody wants to be faced with – especially when you thought you'd found the perfect candidate.

But every so often, new information arises that means you have to rethink the decisions you've already made.

In these situations, it's important that you know how to address this issue in the least damaging way possible.

In this blog, we explain everything you need to know about withdrawing an offer of employment.

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Can you withdraw an offer of employment?

Can an unconditional job offer be withdrawn? 

Why might you have to withdraw a job offer?

How to withdraw an accepted job offer 

Withdrawing an offer of employment - letter template

How to withdraw an unconditional job offer once it's accepted

Example withdrawal of employment offer follow-up letter 

What if a candidate changes their mind?

Can you withdraw an offer of employment?

Up until the job offer is accepted by the candidate, the employment offer can be withdrawn at any time. If the offer was conditional, you can also rescind a job offer at any time if it’s found that the conditions set out in the offer haven't been met.

These conditions can include:

• Failing to hold or provide qualifications specific to that job role

• Not being able to provide satisfactory references

• Being unable to pass background checks

However, if a job is offered unconditionally and the candidate accepts, it becomes a much trickier task.

Can an unconditional job offer be withdrawn?

It is possible to withdraw a job offer after the employee has accepted. But if done incorrectly, you run the risk of being sued for breach of contract.

This is because, technically, the candidate's employment starts at the point of acceptance, meaning the accepted job offer constitutes a legally binding contract.

Therefore, new starters in these situations have the same rights as an employee. This applies even if an individual has not started their first day of work or received their contract.

Read more: Employment contract guide & HR templates

It's also important to remember that this is the case for a verbal job offer and acceptance, as it is considered just as valid as a written job offer.

To avoid any legal issues, it helps to treat the withdrawal of an unconditional job offer in the same way you might treat ending someone's employment, as this is technically what is happening.

This means serving any relevant notice appropriate to the company policy and the relevant new starter's contract. This notice period will generally be quite short in this situation, since the employee won't have passed probation yet.

When withdrawing an offer of employment, it's also essential to avoid discrimination. When choosing to withdraw the offer, ask yourself if any of the following have influenced your decision:

• Age

• Disability

• Gender

• Relationship status

• Pregnancy and maternity

• Race

• Belief

• Sexual orientation

If any of these factors have affected your decision, you should reconsider immediately, since these are grounds for successful legal action at an employment tribunal.

Why might you have to withdraw a job offer?

It takes plenty of time and effort to find the right candidate in today's competitive job market.

The last thing you want is to waste all the time and effort. But sometimes, the situation is untenable and difficult decisions have to be made.

There are several reasons why this might be the case:

• A sudden change in company finances or circumstances makes the offered role unsustainable.

• Internally, mistakes may have been made as part of the hiring process, such as double filling a position, or improper conduct in the interview process. The offer may even have been sent to the wrong candidate in error.

• In rare cases, the candidate's behaviour can cause you to rethink whether they're the right fit. They could, for instance, delay the offer unnecessarily, act rudely to the recruiting staff or try to renegotiate the salary after accepting the role.

• In other instances, routine checks on the candidate can return a criminal record, failed drug test, falsified qualifications or unsatisfactory references. This is in part why conditional offers are common for many companies, as a way to protect themselves when hiring new staff.

Regardless of the reason, the withdrawal of a job offer should always be handled professionally. 

How to withdraw an accepted job offer

If you find yourself in the frustrating position of withdrawing a conditional job offer that has already been accepted, you must provide evidence that the withdrawal was not discriminatory or unfair.

Not only does this ensure your decision is fair, it supports you and your company in any legal proceedings.

Here's an example of what that might look like:

Withdrawing an offer of employment - letter template

Dear [candidate’s name],

On [date], you received a job offer for employment with [company name] as [job title]. As stated in your offer letter, employment with our company was dependent upon successfully passing a [e.g., background check], as well as [list additional pre-employment qualifying criteria]. 

During the hiring process, we found that we [e.g., were unable to substantiate information you had provided regarding your previous employers.].

Therefore, this letter serves as formal written notification that your offer of employment given on [date] with [Company name] has been withdrawn. 

We wish you all the best in your future career. 

Yours sincerely,

[Sender’s signature]

[Sender’s printed name]

[Sender’s job title}

Please note that this letter template is meant to be used as informational guidance and doesn't replace or provide formal HR advice. Our network of trusted HR Partners can help with professional HR advice around withdrawing offers of employment. 

How to withdraw an unconditional job offer once it’s accepted

Withdrawing an unconditional offer that has been accepted is much more complex. In these situations, the employment contract is considered to have started – so think carefully before you write a job offer letter to a candidate.

If the candidate has already accepted an unconditional offer, it's best to call them to discuss the withdrawal of the offer before you send them a formal letter.

This is an opportunity to be open and honest about why you are making the decision. If it's an internal error, say so.

If it is due to a change in financial circumstances, explain this to them. Most people appreciate recruiters being straightforward, honest and transparent with them.

Taking the time to approach your candidate in this manner reduces the chance they will feel alienated, and could mean you leave yourself with an opportunity to reach out again in the future, should another suitable role come up.

We also recommend you follow up this call with an official letter, as this shows professionalism while also acting as a formal notice. 

Example withdrawal of employment offer follow-up letter 

Dear [candidate’s name],

On [date], you received a job offer for employment with [company name] as [job title]. 

As discussed in our phone call on [date], we regret to inform you that the offer you received for said position has now been withdrawn. This withdrawal is due to [reason for withdrawal of offer].

If you have not yet signed or returned the offer, there is no need to do so.

If you have any further questions, please direct them to [name of HR representative], who may be reached at [phone number] or via email at [email address]. Thank you for your time and understanding.

We wish you all the best in your future career. 

Yours sincerely,

 [Sender’s signature]

[Sender’s printed name]

[Sender’s job title]

What if a candidate changes their mind?

Unfortunately, a candidate may also choose to decline a job offer after previously accepting it.

Although this can be frustrating, they will most likely have a good reason.

Similar to your organisation sending out a letter of withdrawal, you should expect an email or letter from the candidate, detailing the reasons they have chosen to decline the role. 

In response, you should reply and wish them all the best.

Reimagine your recruitment process with Breathe

Nobody wants to have to withdraw a job offer. Luckily, these circumstances are rare and the chances of you having to do so more than a few times in your career are fairly slim.

Of course, the best way to avoid having to withdraw a job offer is to get the right candidate in the first place. Here's how Breathe can help with that:

• Track your entire recruitment process from application to acceptance

• Publish new vacancies and collect applications through a built-in application form

• Safely store all your documents and contracts in one place

• View applicant details and documents through one centralised location

Breathe's simple HR software will change the way you find and select new candidates. This makes it more likely that you'll get the right candidate first time, while letting you manage, develop and retain talent with ease.