Learn about the legal implications and employee rights when an employer rescinds a job offer after the employee has already resigned from their previous job.
Key Points:
Employment Contract and Job Offer Rescission: If an employee has accepted a job offer, a valid employment contract is formed, even before the employee starts working. The employer cannot usually unilaterally withdraw the offer without consequences, unless specific contingencies (such as background checks or misrepresentation by the employee) were not met.
Employee Rights and Entitlements: In the event of a rescinded job offer, the employee is entitled to reasonable notice or pay in lieu of notice, similar to a termination scenario. The amount of notice or pay is determined by factors like age, position, salary, and availability of comparable employment.
Notice Period and Severance Pay: The courts have ruled that an employee is entitled to reasonable notice or damages if appropriate notice is not given when a job offer is rescinded. The notice period or severance pay is calculated based on the same principles as termination cases, considering factors like age, position, salary, and job availability.
Mitigating Damages and Finding New Employment: Even if an employee pursues legal action against the employer for rescinding the job offer, the principle of mitigating damages applies. The employee is expected to actively seek new, comparable employment to reduce their losses or damages.
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©2023, Law Society of Ontario. Reproduced with the permission of the Law Society of Ontario.
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