What can employers do when applicants back out of a job offer?

We are in difficult recruitment times with candidates seemingly in a powerful position.

Surveys are pointing to a growing trend in candidates being more likely to withdraw from a job offer that they had initially accepted.

Whilst it is understandable and in the candidate’s interest to explore and prioritise the best offer that would support them and their families most, it can often leave the employer in a difficult position.

They will have lost time and money in the recruitment process, and in some cases, they may have to start all over again.

There are a few ways that candidates can make their withdrawal known and some will phone or email you but an increasingly common trend is that candidates will simply ghost the employer.

This can be particularly frustrating, as it draws out the process even further, as you try to reach out and work out what’s going on.

You wait to hear back from the candidate as to whether they are on board, only to eventually face facts that they’ve moved on without communicating further.

As a result, employers want to understand what they can do to avoid withdrawals.

Does the candidate have a legal obligation to work for you once they have accepted an offer?

Can you sue if they back out?

If the candidate has not accepted the offer, then there is no legally binding contract and they’re entitled to turn down the offer and/or change their mind.

When an offer has been accepted and conditions of the offer have been met, such as the provision of references and proof of right to work, this can potentially constitute a legally binding contract.

However, it is recommended that confirmation of acceptance is sought with a signed employment contract, to avoid any doubt.

In the case that there is a legally binding contract in place, and a candidate chooses to back out, then they would need to terminate the contract and serve the contractual notice period, as outlined in their contract.

However, if they do not agree to do so, they are considered in breach of their contract, and this could mean the employer is entitled to sue for breach of contract.

But it is worth considering whether this would be a worthy pursuit, given the time and cost of legal action, and whether the outcome would even be worth it.

You would normally use a county court for a breach of contract claim.

Damages are only awarded for financial loss so this could be the extra cost of hiring temporary staff to do the work, or for lost revenue.

It’s best to consider how you can avoid this scenario by taking some simple steps during the recruitment process:

• Make sure you have a few good candidates in the pool so that you have a second choice that you would still be happy to bring on board if your number one fails.
• Avoid sending rejection emails immediately and instead, if feasible, wait until the position has been accepted and made legally binding with a written contract of employment.
• Assess your benefits and employer branding and how you compare within the wider market. If you can provide a competitive benefits package and other great perks, candidates may be more likely to stick with you.
• Make the recruitment process efficient. Don’t let it drag out, as this may encourage candidates to look elsewhere.
• Once a candidate has accepted your offer, try to make them feel part of the team as soon as possible by keeping in touch with updates on their onboarding progress.