Rescinding an offer of employment is when an applicant accepts a job offer from their prospective employer, only to have the offer withdrawn.
Since Canada doesn’t have at-will employment, employers have rules they need to follow when they offer someone a job and then change their mind.
If an employer and an applicant are still negotiating the job details, such as compensation, and can't agree, the employer can rescind the job offer. But, if an applicant has already accepted a job offer and met all conditions, the employer can't just change their mind without possible consequences.
In a 2020 court case, Ontario’s Superior Court determined an employer may be liable for damages if it withdraws an accepted offer of employment or terminates employment without cause and without notice or pay in lieu of notice prior to the start date. In this case, the court determined that an employer had to pay three months’ salary in damages to a wrongfully dismissed person.
So, if an employer wants to rescind an accepted offer where all conditions have been met, they need to work with the applicant (i.e., the employee) to find a solution. A possible solution could be a buyout option.