Hi, I wanted to know from an employer perspective, if a candidate accepts an offer and then rejects it, can we take any legal action or any action at all, on the candidate.
The offer is not signed, but a soft copy of the offer is sent and the candidates generally send a return e-mail that they accept this offer and then mention that they will join on a specific date.
My issue is, for certain positions we give them almost 2-3 months joining time, as they have the notice period in the other company. Many cases, even after vigorous follow ups, the candidates tend to reject the offer in the last minute, ie., just before 1 week of joining, due to various reasons. so in such cases, is there any possibility that we can take any action against such people, or we have to just leave it, because they are not our employees yet. This has become a huge issue now, because we are seeing too many last minute cancellation, by which all our planning gets disturbed.
Can any of the members help in letting me know if we have an alternate to this. Thanks, Malathy.

From India, Hyderabad
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Hi Malathy,
I dont think there is any solution to this.. Even I am facing this problem. There is no legal way to handle this since the offers are not binding on the person even if he/she accepts; everybody has the right to change their minds.
Now that the markets have opened up a lot of candidates just collect offers and then pick the best. But bcoz of this unethical practice of some people, we as HR are suffering big time. What I do to tackle this is while shortlisting I calculate the prabability of the candidate not joning at the last moment and thus interview and shortlist a few more CVs and put them on standby. If the first one declines , immediately another offer is made to the next best candidate.
Time is definetely wasted in this exercise but atleast you have ready candidates in hand, just in case...
Regards,
Jyoti

From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply contains some inaccuracies. In many jurisdictions, even verbal acceptance of an offer can create a legally binding contract. Employers can seek damages for losses incurred due to a candidate reneging on an offer. However, it is essential to consult with legal counsel to understand the specific laws that apply in your region.
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  • Hi Jyoti - I agree, but for certain jobs, we literally exhaust our backups too, and that's where the issue comes.And in some cases the staffing team has back up of those candidates who are not the very best, and also since its almost 3 months gap, even those candidates who were as back up, either would have accepted another offer in the meantime, or not interested, since we took so much time to revert. So an immediate replacement becomes very difficult for very senior jobs. If its an easy job, then I wont worry much, but for senior and tough jobs in market, we face big difficulty. Any ways, thanks for your reply.
    From India, Hyderabad
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply does not directly address the legal implications of a candidate accepting and then rejecting a job offer. It focuses more on the challenges faced in finding replacements for senior positions. It would be beneficial to seek legal counsel on potential actions against candidates in such situations.
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  • Hi,
    I also suffered from this position. People take offer letter but last minute their mind get changed. Its their own decision. If you are candidate and you get good opportunity then you also take decision like that. Its normal.
    In my previous company when we gave offer letter after that we took candidate resignation letter in next 7 days. So we were sure about their joining.

    From India, Pune
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply contains incorrect information. According to the law, accepting an offer letter does not create a binding contract until it is signed. Requesting a resignation letter within 7 days of offering a job is not a standard practice and can lead to legal issues.
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  • Hi, I have started using another method.. What I do is when I send the offer letter I put a clause that once accepted this offer is binding on both parties, and if the acceptance is not sent within 2 days, the offer will expire. Till now its working since the candidates think twice before accepting. Try it yourself and gimme the feedback.
    Regards,
    Jyoti

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply is incorrect. An offer letter itself, even with a clause, does not create a legally binding contract until it is signed by both parties. No legal action can be taken if a candidate rejects before signing.
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  • Hi i often face the same issue, Jyoti could you please clarify that how does it binds the candidate? is it something legal binding? if not then how does it works?
    From Pakistan, Karachi
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply is incorrect. When a candidate accepts an offer, it may not always be legally binding without a signed contract. However, there can be situations where promissory estoppel may apply if the employer incurs expenses due to the candidate's acceptance. It's essential to consult legal counsel for specific cases.
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  • Hello, 1) You should maintain back up with some other suitable profile 2) and need to fallow up with candidate in between, when you issued offer to join 2-3 months.
    From India, Hyderabad
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply is partially correct but lacks legal specifics regarding taking action against candidates who back out after accepting an offer.
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  • Dear Malathysrinivasan ,
    When you give offer to anyone:
    1) Just check there willingness.
    2) Give time limit for accepting offer letter otherwise offer will be automatically cancelled.
    3) Give time limit for receiving there resignation.
    4) Follow up for joining time to timely.

    With Regards,
    Vineet Deshmukh

    From India, Yavatmal
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  • CA
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    (Fact Check Failed/Partial)-The user reply lacks legal accuracy. In most jurisdictions, employment is presumed to be at-will until a contract is signed. No legal action can be taken against a candidate who withdraws before signing.
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  • One signed offer letter and accepted - its employee prospective.... Now, notice period is 30 days. Then, within say 30 days, mind may get changed. Now, if one doesn't want to join, is there any legal punishment to the employee?
    From India, Madras
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply is incorrect. There is no legal punishment for an employee changing their mind and not joining after accepting an offer unless there is a signed contract with specific clauses allowing for such actions. It's essential to have signed agreements to enforce obligations.
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  • Hello Malathy,

    The problem you mentioned is pretty common and widespread, especially in the IT industry.

    I guess Jyoti has given good and practical suggestions.

    But there's one thing/aspect in the scenario that doesn't really jell.

    The situation of offer acceptance and rejection before joining is more often observed in junior-to-mid-level positions.

    But you mention that you are facing this problem with senior-level candidates, who by virtue of their age and experience are usually mature and keep their word once given.

    Have you explored/examined any other reasons that could be the cause for the problem you are facing with senior persons?

    The possibilities could be many for senior persons acting this way—but you can gauge this only by the body language observations during your interaction in F2F and telecons—this is where Jyoti's experienced suggestion ["...calculate the probability of the candidate not joining..."] comes in.

    Another way—though a bit tough to implement—is to insist on references from the last 2 or 3 employers. That way your reference checks would cover a wider time window. And suggest giving careful thought to the queries/questions included in the reference check questionnaire—include indirect queries that would give an idea of the mentality/attitude of the candidate. Hope you get the point.

    By the way, what is the domain/field of your company—IT or any other?

    All the best.

    Regards,

    TS

    From India, Hyderabad
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply contains some misconceptions. Legally, without a signed offer, no action can be taken against a candidate for rejecting an offer. It's crucial to have a signed agreement for enforceability.
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