Can a company rescind a resignation agreement letter to an employee after both parties have signed the letter without violation of the agreement?
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Can a company rescind a resignation agreement letter to an employee after both parties have signed the letter without violation of the agreement?
A resignation offer was given to an employee the company wants to terminate, the CEO of the company signed the offer and gave it to the employee to think over, sign and return. After signing and returning the offer, the company has indicated they are now considering rescinding the offer and making it void.
Asked on January 12, 2012 under Employment Labor Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
No, they cannot. Once the company gave a letter with the offer, signed by the CEO, to the employee, and the employee accepted the offer and evidenced that acceptance by countersigning, an enforceable contract is formed. The employee could certainly agree to accept a different offer if he or she chose, but he company has no right to unilaterally rescind, void, or change the current offer; once a contact is formed, it takes the agreement of both parties to change or void it.
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