• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983

2

Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?

3

CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea

1

Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983

2

Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?

3

CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea
Leadershiptalent acquisition, retention, management

So you’ve changed your mind about that new hire—here’s how to retract a job offer

Orianna Rosa Royle
By
Orianna Rosa Royle
Orianna Rosa Royle
Associate Editor, Success
Down Arrow Button Icon
Orianna Rosa Royle
By
Orianna Rosa Royle
Orianna Rosa Royle
Associate Editor, Success
Down Arrow Button Icon
April 29, 2023, 5:00 AM ET
Frustrated young man reading letter
“The best protection is to always make offers conditional," an employment lawyer advises Fortune. fizkes—Getty Images

For most employers, recruitment is a fairly straightforward process: you interview a candidate, offer a job, sign a contract, and the rest is history.

But life—and business—is unpredictable.

Strategies change, better last-minute candidates come up, and sudden hiring freezes are increasingly common as businesses try to reign in spending. 

The result is sometimes a painful job offer retraction—and it’s not an uncommon predicament, Gareth Matthews, an employment law partner at MLP Law tells Fortune.  

“In most cases, job offers are retracted either because the business’ plans have changed or because the candidate didn’t turn out to meet the job requirements,” he adds. 

No matter what the reason is, Matthews offers guidance for employers on how to pull a job offer without falling foul of the law.

First up, get the offer right

“A good defense is the best offense, so make sure you always make any job offers conditional,” Matthews advises.

He adds that employers must always make it clear to candidates that any job offer is subject to the conditions being met and that they shouldn’t resign from their old job until then.

In most cases, conditions of employment will include having the right to work in whatever country you’re based, providing references and demonstrating proof of relevant qualifications. 

Employers should think ahead about what they would expect from their new hire, in order to touch all bases and make the conditions as detailed as needed.

For example, Matthews has seen some cases where job offers were retracted because they required someone to be physically able to do certain tasks. “If a medical shows they can’t perform those tasks, and the job offer was conditional on them doing so, then a job offer may be withdrawn.” 

Likewise, if you know that your new hire will need to drive to stockists, then it would be wise to include having a driving license as part of the conditions of the job offer. 

By laying out the conditions of a job offer, it’s much easier and quicker to then retract the offer if the candidate doesn’t deliver than if the offer made was unconditional or if conditions weren’t specified.

What to do if you didn’t make the job offer conditional

“If a job offer has been made unconditionally, or if it doesn’t specify certain conditions, then it’s not as easy to withdraw it,” Matthews warns.

Essentially, a job offer is legally binding. Without conditions laid out, you enter into an employment contract with the candidate at the point of making the offer.

At that stage, like any other employee at your firm, their “employment contracts can only be terminated on certain grounds and, in the majority of cases, with notice,” Matthews says.

“You’d then need to go through a dismissal procedure if you wanted to remove the candidate from their post, to effectively terminate an employment which in practical terms hasn’t really started.”

Plus, unless you want to risk being sued for breach of contract, Matthews adds that you’ll probably need to pay the fired new hire for their notice period. 

The big risk: Discrimination

When it comes to retracting a job offer, one of the biggest risks businesses (in English-speaking countries, including the U.S. and U.K.) should be aware of is discrimination.

“You need to be careful that you don’t retract a job offer in such a way that it’s seen to be as a result of discrimination – or even to refuse to make an offer because of an assumption that conditions of employment won’t be met,” Matthews says.

It’s why being specific about the conditions you’re asking a candidate to meet when offering the job is so important.

If you were to assume that a worker won’t be fit enough to do a physically demanding job and then retract or not make an offer based on that, that would be unlawful. 

With over 40 years of experience with HR and employment law issues, David D. Schein, President and General Counsel at Claremont Management Group, agrees that in the States “withdrawing an offer of employment is a difficult issue and can definitely lead to discrimination or breach of contract claims.”

What’s more, even though the majority of states have an “employment at will” law – employers have the ability to dismiss an employee for any reason, and without warning, as long as the reason is not illegal.

“A useful statement in the offer letter is to always state that the offer is for at-will employment and that neither the offer letter or any subsequent employment constitutes a contract of employment,” he tells Fortune.

Schein also echoes that “the first protection is that no offer of employment should ever be unconditional” but this still comes with one major drawback: “If an offer is withdrawn, it would be normal for the candidate to ask what reference or information caused the revocation of the offer.

It’s why Matthews thinks honesty is always the best policy.

“This can help protect you from discrimination claims,” he added.

“In the absence of a business reason, a candidate may jump to wrong conclusion and claim that they were in line to get a new job but you later discovered that they were gay or disabled or had any other protected characteristic, and you then withdrew the job offer.”

About the Author
Orianna Rosa Royle
By Orianna Rosa RoyleAssociate Editor, Success
Instagram iconLinkedIn iconTwitter icon

Orianna Rosa Royle is the Success associate editor at Fortune, overseeing careers, leadership, and company culture coverage. She was previously the senior reporter at Management Today, Britain's longest-running publication for CEOs. 

See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Wall Street is gaining access to new catastrophe models to help predict wars
BankingWar
Wall Street is gaining access to new catastrophe models to help predict wars
By Gautam Naik and BloombergJune 14, 2026
11 hours ago
People wait outside a building
AIJobs
AI job disruption is here. The problem may be compounded because nearly 75% of people don’t apply for unemployment benefits
By Jacqueline MunisJune 14, 2026
11 hours ago
Photo of Kevin O'Leary
SuccessSteve Jobs
Kevin O’Leary says being liked has nothing to do with success—Steve Jobs taught him: ‘You can’t worry about whose feelings you bruise’
By Emma BurleighJune 14, 2026
11 hours ago
Photo of young woman with a photo of a pizza
SuccessThe Interview Playbook
Gen Z grad landed an internship by wearing her university baseball cap to her pizza joint job. Now she works at Cisco
By Orianna Rosa RoyleJune 14, 2026
11 hours ago
SpaceX went from three consecutive rocket explosions and near-bankruptcy in 2008 to the biggest IPO in history
Startups & VentureSpaceX
SpaceX went from three consecutive rocket explosions and near-bankruptcy in 2008 to the biggest IPO in history
By Marco Quiroz-GutierrezJune 14, 2026
14 hours ago
A 1% mistake costs $10 billion: Inside the impossible math of managing Elon Musk’s trillionaire SpaceX wealth
Personal FinanceElon Musk
A 1% mistake costs $10 billion: Inside the impossible math of managing Elon Musk’s trillionaire SpaceX wealth
By Sydney LakeJune 14, 2026
15 hours ago

Most Popular

Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983
Personal Finance
Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983
By John W. Diamond and The ConversationJune 12, 2026
2 days ago
Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?
Economy
Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?
By Nick LichtenbergJune 14, 2026
15 hours ago
CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea
Success
CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea
By Preston ForeJune 13, 2026
2 days ago
Iran proved it can close the Strait of Hormuz, but the U.S. is advertising very loudly that the world's top superpower can at least punch open a hole
Energy
Iran proved it can close the Strait of Hormuz, but the U.S. is advertising very loudly that the world's top superpower can at least punch open a hole
By Jason MaJune 14, 2026
8 hours ago
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Sydney LakeJune 13, 2026
2 days ago
The Gen Z cofounder of $1.6 billion Whop says his platform has minted over 650 millionaires—he wants to make work fun and money worries obsolete
Success
The Gen Z cofounder of $1.6 billion Whop says his platform has minted over 650 millionaires—he wants to make work fun and money worries obsolete
By Emma BurleighJune 14, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.