Job Offer Rescind Letters: Guidelines and Templates

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Nobody looks forward to sending job offer rescind letters. It’s one of the most challenging tasks in recruitment, carrying both emotional weight and potential legal implications. However, there are times when it’s necessary to withdraw an offer, and having a clear process and well-crafted templates can help your team handle this sensitive situation professionally and empathetically.

This guide will walk you through the essential aspects of job offer rescission, from understanding when it’s necessary to crafting appropriate communication. We’ll provide practical templates and actionable advice to help your organization manage this difficult process while maintaining professionalism.

Reasons you might rescind a job offer

Circumstances may change between the time you extend a job offer and the candidate’s start date. While rescinding an offer should never be your first choice, certain situations may make it necessary.

Common reasons job offers are rescinded include:

Economic downturns and market changes: Sudden shifts in market conditions may force you to revise your hiring plans. Whether it’s an unexpected revenue decline, loss of major clients, or broader economic downturn, these situations might require immediate cost-cutting measures.
Company reorganizations: Mergers, acquisitions, or internal restructuring can eliminate positions or change job requirements significantly. Your organization might determine that previously approved positions no longer align with new organizational structures or business objectives.
Failed background checks or drug tests: You may need to rescine an offer if pre-employment screening reveals issues. Always ensure your screening processes comply with applicable laws and that your offer letters clearly state this contingency.
Reference check issues: Reference checks completed after a contingent offer may reveal concerning information about past performance, behavior, or circumstances of departure from previous employers.
Inability to verify credentials: You may need to withdraw an offer if a candidate can’t provide documentation required for employment. This includes situations where candidates fail to produce necessary professional licenses, educational degrees, or work authorization documents within reasonable timeframes.

What to include in job offer rescind letters

Well-crafted job offer rescind letters should be clear, professional, and empathetic.

Here are the key elements to include:

Clear statement of rescission. Begin with a direct but professional statement that the job offer is being withdrawn. The candidate should understand immediately what the letter is about.
Explanation of the reason. Provide a clear, honest explanation for the decision. While you don’t need to share every detail, offering some context helps the candidate understand the situation.
Next steps and final instructions. Include any necessary information about returning signed documents or company property if applicable. If you’re keeping their resume on file for future opportunities, mention this. Also, provide clear instructions about any expense reimbursements if the candidate incurred costs related to the position.
Professional closing. End with a professional, empathetic closing that acknowledges the impact of this decision. Consider offering to provide references or assistance in their continued job search when appropriate.

Job offer rescind letter templates

Here are several templates you can adapt based on your specific situation. Remember to customize these templates to match your company’s tone and circumstances.

Template 1: Business circumstances

Dear [Candidate Name],

I’m writing to inform you that [Company Name] must unfortunately withdraw the job offer extended to you on [date] for the position of [job title].

This decision was made due to unexpected changes in our business circumstances, specifically [brief explanation, such as “a company-wide hiring freeze due to market conditions”]. This situation was unforeseen when we extended the offer, and we sincerely regret any disappointment or inconvenience this may cause you.

Your candidacy impressed our team, and we would welcome your application for future positions that match your qualifications. We’ll keep your resume on file and contact you if suitable opportunities arise.

We wish you the best in your career search.

Sincerely,

[Your name]

[Title]

[Company Name]

Template 2: Failed background check

Dear [Candidate Name],

I am writing regarding the job offer extended to you on [date] for the position of [job title] at [Company Name].

As discussed during our hiring process, this offer was contingent upon successful completion of a background check. We regret to inform you that based on the results of this check, we must withdraw our employment offer.

Specifically, [provide appropriate level of detail about the issue, being mindful of legal requirements and privacy concerns].

In accordance with the Fair Credit Reporting Act, you will receive a separate communication from our background check provider with a copy of the report and information about your rights.

We appreciate your interest in [Company Name] and wish you success in your future endeavors.

Sincerely,

[Your name]

[Title]

[Company Name]

Template 3: Documentation issues

Dear [Candidate Name],

I am writing regarding the job offer extended to you on [date] for the position of [job title] at [Company Name].

As outlined in our offer letter, this position requires [specific documentation/certification]. Despite multiple requests and the extension provided, we have not received the required documentation by the agreed-upon deadline of [date].

As a result, we must withdraw our employment offer. This decision is final but does not prevent you from applying for future positions once you have obtained the necessary documentation.

If you have any questions about the specific requirements, please don’t hesitate to reach out to [contact person/department].

We wish you the best in your future endeavors.

Sincerely,

[Your name]

[Title]

[Company Name]

Guidelines for sending job offer rescissions

The way you communicate a rescinded offer can significantly impact both the candidate’s experience and your company’s reputation.

Here are some best practices to follow:

Timing and method of delivery

The timing of an offer rescission can impact both its legal implications and its effect on your employer brand. Withdrawing an offer immediately after extending it is generally less disruptive than doing so when the candidate has already given notice to their current employer or relocated for the position.

When possible, communicate the decision through multiple channels. While the formal rescind letter should be sent via email or mail, consider having a brief phone conversation first. This personal touch can help manage the situation more professionally and empathetically.

Documentation and record-keeping

Maintain detailed records of all communication related to the rescinded offer. This includes the original offer letter, any contingencies, communication about issues or concerns, and the final rescind letter. Good documentation helps protect your organization if questions arise later.

Legal considerations

Before rescinding any job offer, consult with your legal team or employment counsel. This is particularly important if the candidate has already accepted the offer or taken actions based on it, such as relocating or leaving another job.

Maintain transparency

Be as transparent as possible about the reasons for the rescission, within legal and practical limits. This helps maintain trust and professionalism, even in a difficult situation.

Offer assistance when possible

If the rescission is due to business circumstances rather than candidate issues, consider offering networking assistance or referrals to other opportunities. This goodwill can help maintain your company’s reputation.

Monitor online feedback

Offer rescissions can significantly impact your reputation as an employer. Pay attention to employer review sites and social media after rescinding offers. Address any feedback professionally and use it to improve your processes.

Final thoughts on job offer rescind letters

Job offer recissions are unpleasant for everyone — but most of all, the candidate. Handling it professionally and empathetically can soften the blow and possibly preserve your relationship with the candidate.