Reneging offer for a much better one

Question

I know it has been discussed a lot about reneging offers. This is generally something I’d never do.

However, this time there are some specificities:

0. premise: I verbally (nothing signed) accepted an offer but received a better one soon after.

1. gross salary is more than 60% higher (from EUR 50k to 85k). After taxes, I am getting nearly 80% more in my pocket.

2. the new offer is in my country. On the other hand, the one that I have accepted is abroad and in a country that has particularly strict rules about traveling back and forth (due to covid).

3. I have only accepted via email after receiving a brief explanation of salary and main benefits. I have never seen the details of the contract. For example; -I have no idea on how long of a notice they need to fire me. -I do not know their policy on the paternity of inventions (very important in my field). -I was verbally told about salary increases within the duration contract but I have nothing written yet.

4. the hiring process is not finished yet, I have to go through some procedures with the HR (including, hopefully, seeing the formal agreement) and do a background check. As far as they know, I may be a criminal and be ineligible for employment (not the case of course). And in fact, my position is still advertised on their site. On the other hand, however, they already bought a pc for my office.

5. I am quite competitive in my field and so I am sure they know that I have alternative.

6. I had quite a hard deadline to accept, after being told the salary.

I want to join the second (new) place. How to handle this professionally?

My idea is to be honest about the higher salary and the chance to work near my family, and offer to donate them funding (they do research) to repay them for the computer they bought.

Would it be professional? Am I risking to put my recommenders in a bad light?

UPDATE: I will be sent the full contract to be signed electronically. So I guess I am not even reneging, since as far as we know I might disagree with its terms (that I only know in part), and nothing can proceed without my signature.

Answer 1

How to handle this?

Reply to them with something like:

Hello X. Upon further consideration I will not be able to accept this position. Thank you for your time throughout this process and please accept my apologies for any inconvenience that this may cause.

Don't worry about the PC as it is meant for the position you applied to and not yourself personally. They will surely hire someone to fill the position at some point.

My idea is to be honest about the higher salary and the chance to work near my family,

You can be honest about your reasons for selecting another company, if asked but your reasons for joining/not joining a company are personal and none of their business.

Am I risking to put my recommenders in a bad light?

No. Your decision to join or not join this specific company has no bearing on the people who recommend you for employment.

Answer 2

I want to join the second (new) place. How to handle this?

Inform the first company that regretfully you will be unable to take their job. No need for details. Do not worry about computers or anything else. Your obligation stops there.

Am I risking to put my recommenders in a bad light?

No, your reason for changing your mind could be something unavoidable or of superlative importance. There is no way of knowing and you do not have to justify anything. Until a contract is signed it's just an offer.

Answer 3

3. I have only accepted via email after receiving a brief explanation of salary and main benefits. I have never seen the details of the contract. For example; -I have no idea on how long of a notice they need to fire me. -I do not know their policy on the paternity of inventions (very important in my field). -I was verbally told about salary increases within the duration contract but I have nothing written yet.

4. I had quite a hard deadline to accept, after being told the salary.

So you accepted the offer before they showed you the contract? And this is the first organization, not the second? I'm sorry, but you made a mistake.

You never accept an offer until they've given you the contract. That's what you should have told them when they gave you the hard deadline.

If they're not capable of sending you a signed copy of the contract (plus any employee manual referenced within the contract) through FedEx (or through DHL, or through DocuSign, or through whatever reliable messenger service you have in your country) within 24 hours or 48 hours, that's their problem, not yours.

And yes, contracts can have a clause that say "pending a background check that verifies the information given". Those aren't a problem. Contracts can still be signed before a background check is complete.

I have no idea on how long of a notice they need to fire me. -I do not know their policy on the paternity of inventions (very important in my field). -I was verbally told about salary increases within the duration contract but I have nothing written yet.

Did they give you the starting date? Or tell you who would be responsible for any relocation/visa expenses? Initial hotel/AirBnB expenses? Or tell you would be financially responsible for any visa delays/travel delays/potential quarantines outside of your control?

If they didn't make any legally binding commitment to you, you do not owe them anything. And honestly, I think you may have dodged a bullet with that one.

My idea is to be honest about the higher salary and the chance to work near my family, and offer to donate them funding (they do research) to repay them for the computer they bought.

Did they actually send you that computer? Or are they really going to send you that computer if you reimburse it for them? I doubt it.

If they really did buy a brand new computer in advance, it's because they buy them in bulk, or it's because they keep some as potential backups in case there is equipment breakage. In most modern countries, it doesn't take more than one or two hours to buy a new computer, so there is really no reason to buy them in advance unless you're willing to let them sit in your closet for a while.

Don't let them manipulate you. They didn't give you anything. You don't owe them anything.

If you're too honest and disclose too much, you're also potentially creating legal troubles for yourself. Do not let them know that there is even a second company. If you really want to explain things, say that you haven't received the contract yet and this makes you feel really uncomfortable.

As to the second company, did you actually get the contract yet? Do not make the same mistake again. Do not reject the first company until the contract with your second company is signed. And if/when you do reject that first one, do not disclose too much.

Answer 4

Disclaimer: I am not a lawyer.

If nothing is signed, then you have not agreed on the terms of your employment. Therefore you can simply say you have reconsidered the offer and chosen a different path, and that's that.

The counterpositive of this would be that the company can say "you're hired! Do you accept?" and if you say yes then they can say "Oh and by the way, the salary is [half of what was actually discussed]* and you get no benefits and your required notice period is 5 years, with a $1MM penalty if you fail to serve haha good luck" and you'd be screwed; even if you took them to court, you have hearsay over what was discussed on the phone, and they have written proof that you agreed to be hired and written terms of the agreement (presented after the fact of course) which would give them much more credibility in court.

So the rule is that nothing is final until official documents stating the terms are signed and countersigned. Until that happens, do what you want. If you like the other offer better, simply return to the first company and say "something has come up, I've decided not to accept your offer". You may want to expect your bridge to be burned with that company if you do this though, so there's that to consider, if it matters at all.

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*(they would of course not mention in writing that they had presented another number to you and just give you the number which would be significantly less than discussed)

Answer 5

You are free to take back your word, but you might be able to benefit from being open.

It's a bit dependent on circumstances though.

1. Ask a lawyer. You accepted, in writing, so your first employer may try to enforce this, and depending on your jurisdiction, this may or may not have consequences.
   Don't ask just about the law, ask what the typical outcomes of attempted enforcement are.
2. Enforced acceptance is usually not in the best interest of the employer. An unwilling employee will typically resign as soon as possible, and not give quality work.
   Not all employers have this level of insight though. Pushing a hard deadline without giving the full contract first is a big red flag, indicating an abusive employer - they might try to enforce anyway because it's working for them (it's no use arguing the point with them, they won't understand because the employees that they have are those that actually yield to that kind of pressure).
3. In the (somewhat unlikely) case the enforced deadline was a mistake, or not meant the way it came over: If you talk about the better offer, there's a chance that they will make a better counteroffer.
4. If the field of work is small enough that reputation matters, you are now building a reputation of driving monetary bargains. That's good for you: You won't be getting as many cheapskate offers anymore.
   As a side bonus, you will also gain a reputation of being open and honest.

Answer 6

Would it be acceptable, in your opinion?

It really doesn't matter if we think it is "acceptable" or not. Even with your reasons for reneging on the offer, it's not going to show you in a good light - you went back on your word. At the very least, you can probably forget about ever having a job with that company at any point in the future.

Am I risking to put my recommenders in a bad light?

That depends what your recommenders said. If they said "Wolf is a the most honourable person I know, they would never go back on their word", then yes, it makes them look like a very poor judge of character. If they said "Wolf is good technically but I don't know their character very well", then probably not.