Legal Question in Employment Law in Maryland

Rescinding employment offers

If an employment offer is made over the phone and it is accepted and a start date is to take place the next week. Can the offer be rescinded after you have already given notice to your current employer?

My husband received an offer over the phone on a Monday. He accepted it, they wanted him to start the following Monday. He agreed. The next day he received a called stating he was to interview again for the position. He informed the caller that he had received and excepted the offer. Plus he was relocating that weekend. The offer was faxed and the new hire package was sent UPS this same day. Is this legal?

Kelly


Asked on 1/08/03, 8:51 am

2 Answers from Attorneys

G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Rescinding employment offers

From the sound of it, your husband not only has a legal contract that may

be enforced but also has determintal reliance for damages on the contract action or on the offer.

The question is what was said on the phone and what the contract was for.

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Answered on 1/08/03, 9:10 am

Re: Rescinding employment offers

There are several factors which go into determining whether a valid contract existed prior to it being rescinded, but it sounds as if your husband has a viable legal claim regardless of whether a contract exists. That is, he can sue on equitable (fairness) grounds such as detrimental reliance or promissory estoppel. These basically mean that he took action (preparing to move, halting his job search, etc.) based on the potential employer's promise of employment and suffered damages because of it.

On the contract side, your husband would have a valid oral contract if there was an offer and acceptance of the job (as you say), and the contract could be performed within one year. In other words, if it was simply a contract to hire him, then it would be performed immediately and would come within a law known as the Statute of Frauds which allows such oral contracts. If the contract called for a term of employment (or other conditions to be performed)beyond one year, then it would not be enforceable.

There is also the question of the written contract which was mailed after the conversation. Perhaps that is binding even though the offer was allegedly rescinded.

The practical problem with all of this is that the employer could possibly be forced to hire your husband and then simply fire him as an employee at will (unless there is some guarantee of continued employment in the contract).

Chances are the employer would not treat your husband partcularly well, either, if they were forced to hire him.

The best tact, then, is diplomacy. Your husband should try to speak directly with the decision-makers (those who hired him and who have the most authority at the company) and convince them that he is indeed the right person for the job. He can lightly hint that he has sought legal advice and believes he has a viable legal claim for breach of contract and damages, but he should tread very lightly there. No one likes legal threats, particularly employers. That should be a last resort if he can not gain any ground otherwise.

If your husband wants to discuss his specific facts, please call me for a free consultation. He may not need an attorney, but I would be glad to discuss the matter and help if I can.

Good luck.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

6932 Mayfair Road

Laurel, MD 20707

301.604.2497

fax: 301.776.3954

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

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Answered on 1/08/03, 9:59 am


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