Q re liability when a Job Offer is rescinded
Discussion
Hi all
First time I';ve used PistonHeads for a general Q like this so hope it works well.
Essentially I need advice on an HR issue:-
Are we obliged to pay compensation to someone to whom we offered a job but then had to rescind that offer before they started work? We made an offer a while ago but the business has suffered a downturn in the time since we made that offer. We have not received signed copies of our offer back from the applicant although they verbally accepted it. We endeavoured to help the applicant by informing them of the situation 4 ½ weeks before their start date so they had time to organise remaining in their current employment. However they have taken the approach that we have breached contract and owe them compensation. We consulted ACAS who seem to claim the contract has no validity until the day they commence work. We have paid no agency fees or any fees to the applicant. We dont see the applicant has suffered a loss - just embarrassment about resigning then asking to stay after all.
Help gratefully received!
First time I';ve used PistonHeads for a general Q like this so hope it works well.
Essentially I need advice on an HR issue:-
Are we obliged to pay compensation to someone to whom we offered a job but then had to rescind that offer before they started work? We made an offer a while ago but the business has suffered a downturn in the time since we made that offer. We have not received signed copies of our offer back from the applicant although they verbally accepted it. We endeavoured to help the applicant by informing them of the situation 4 ½ weeks before their start date so they had time to organise remaining in their current employment. However they have taken the approach that we have breached contract and owe them compensation. We consulted ACAS who seem to claim the contract has no validity until the day they commence work. We have paid no agency fees or any fees to the applicant. We dont see the applicant has suffered a loss - just embarrassment about resigning then asking to stay after all.
Help gratefully received!
tty thing to do albeit can't see how compo can be due if they've not started. Even if they had you can drop them like a stone for 1st 12 months.If they had started with you you now have TWO years in which you can say 'Sorry, it isn't working out' and sack them with probably a week of notice.
What you don't seem to acknowledge is the real possibility that the person is likely to be out of a job now, and has gone from a position of 'getting a new job and leaving old job' to 'unemployed with bills to pay like millions of others trying to get a job'. The old employer does not have to accept them back. Indeed the old employer has probably started their own contingency plans such as taking on a replacement or promoting from within.
Not much you can do to help them, unless you are incredibly generous and offer them minimum wage for a month or two while they look for another job. I can see how a smaller business could easily be in this position and job hunters should ideally realise that changing jobs is risky. I hope I never have to rescind a job offer!
What you don't seem to acknowledge is the real possibility that the person is likely to be out of a job now, and has gone from a position of 'getting a new job and leaving old job' to 'unemployed with bills to pay like millions of others trying to get a job'. The old employer does not have to accept them back. Indeed the old employer has probably started their own contingency plans such as taking on a replacement or promoting from within.
Not much you can do to help them, unless you are incredibly generous and offer them minimum wage for a month or two while they look for another job. I can see how a smaller business could easily be in this position and job hunters should ideally realise that changing jobs is risky. I hope I never have to rescind a job offer!
TurricanII said:
What you don't seem to acknowledge is the real possibility that the person is likely to be out of a job now, and has gone from a position of 'getting a new job and leaving old job' to 'unemployed with bills to pay like millions of others trying to get a job'. The old employer does not have to accept them back.
And may not want them back if they know they're actively trying to leave.Can't help with the legal side of things, but hope you get it sorted.
When I say the applicant has suffered no loss I mean financially/salary-wise. Understood there is a loss of face with previous employer. Which is why we helped them to retain their job. I have been in that situation years ago and would have no issues whatsover continuing to work with ex-employer. Depends on how good a relation you have to start with.
Caulkhead said:
vaughnc said:
We dont see the applicant has suffered a loss
You can't see how handing in your notice and then having to stay can be detrimental to your career and prospects with that company?Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff