Buzzing About HR

Verbal Job Offers: The Hidden Legal Traps

Kate Underwood Season 1 Episode 12

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Navigating the legal minefield of verbal job offers can be tricky terrain for even the most experienced HR professionals. Have you ever wondered if that enthusiastic "We'd love to have you!" creates a legally binding contract? The answer might surprise you.

When excitement takes over during the perfect interview, it's easy to blurt out an offer without considering the legal implications. But as the McCann v Snowzone case demonstrates, verbal offers carry real weight in employment tribunals – potentially requiring payment of notice periods even if your new hire never starts. That casual conversation could become a costly commitment faster than you can say "welcome aboard."

The secret weapon every hiring manager needs? Five simple words: "subject to references and right to work." This magical phrase, when used before acceptance, creates conditional offers that protect your business while maintaining professionalism. Paired with prompt written follow-up, a streamlined offer process, and proper documentation, you'll navigate verbal offers confidently.

For busy SMEs, I've broken down the practical steps to make offers legally sound without administrative headaches. From creating simple offer scripts to knowing exactly what constitutes a binding agreement, this episode delivers actionable advice you can implement immediately. Learn how to avoid common pitfalls like letting candidates resign before formal offers are signed or making promises that exceed what you intended.

Ready to handle verbal offers with confidence? Listen now, then get in touch if you'd like personalised help with conditional offer letters or contract wording. And don't miss next week's episode on managing the "Great British Sickie" – those unexpected absences that cost your business more than you might think.

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Until next time, keep buzzing and take care of your people!

Speaker 1:

Hey there, lovely people, and welcome back to Buzzing About HR. I'm Kate Underwood, your friendly HR translator, myth buster and all-round people strategy cheerleader. Today we're diving into something that sounds simple on the surface but can turn into a proper HR headache verbal job offers. Picture the scene You've had a cracking interview with someone who's an absolute gem. You're excited, they're excited and before you know it, you're blurting out something like amazing, we'd love to have you on board. Cue happy noises and a hopeful start date scribbled on a napkin. But hang on, what just happened? Did you just create a legally binding employment contract? Is there any wriggle room if things change? And what happens if you suddenly realise the budget's not there or another candidate crops up? Let's break it all down together in true buzzing about HR fashion, practical people, focused and with just a dash of cheeky humour to keep us going.

Speaker 1:

Part one so what's the legal deal with verbal job offers? Okay, quick legal recap A contract doesn't have to be written to be binding. Wild right In the UK, as soon as there's an offer, acceptance, intention to create legal relations. Basically, you both mean it and consideration. You pay them, they do the job. You've got yourself a contract. That means, even if the only thing exchanged is a smiley phone call and a great see you Monday, you might already be on the hook. One case I love mentioning is McCann v Snowzone. The employer made a verbal offer, then tried to back out, and the employment tribunal said nope, too late. They had to pay up One month's notice. Pay just like that. So if you're an SME thinking, oh, it's just a chat, think again. Verbal offers carry real weight.

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Part two what's actually agreed in a verbal offer? So here's where it gets a bit messier. When you've made that verbal offer, what exactly have you promised? If you've been vague or overly enthusiastic, we'll look after you. Bonuses are really generous. You'll move up quickly here. You might be saying more than you meant to.

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Even if you don't go into detail, the law fills in the blanks. That means the person's entitled to the basics minimum wage, holiday, statutory notice and a safe working environment, oh, and a relationship based on mutual trust and confidence. But without a written contract, you've got no proof of the specifics salary, hours, benefits so it ends up being your word against theirs. And guess what, in a dispute, people remember things very differently. What you saw as a casual chat might be remembered as a firm promise.

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Part three Written particulars are a legal must-have and they're day one now. Since April 2020, it's been the law that every new employee or worker must get written particulars, basically the key terms of their employment on or before their first day, not the week after, not once they're settled in Day one. That means you need to be ready. Ideally, the contract and offer letter should be prepped and waiting before you even make the offer call. That way, you can follow up with an email straight away and tick that legal box without the stress. It also sends a great message to candidates you look professional, organised and like you actually know what you're doing, which, of course, you do.

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Part four the magic phrase every HR pro loves subject to, here's your secret weapon when making offers the phrase subject to references and right to work checks. Those five words can save you a world of pain. If you make a conditional offer, as in, the job is only theirs. If they pass certain checks, then you can still back out if they don't meet the conditions. But and it's a big but you have to say it up front. If you say it after they've already accepted, it doesn't count. So, whether it's references, qualifications, a DBS check or right to work documents. Lead with the conditions. Before you ask them to say yes, say something like we'd love to offer you the role, subject to satisfactory references and proof of your right to work. I'll send everything over in writing simple, clear and protects both sides.

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Part 5. Real-world workflow how SMEs can make this easier. I know what you're thinking. We don't have time for complicated HR processes. Don't worry, this doesn't need to be a paperwork mountain. Start with a little offer script, nothing fancy, just a short set of prompts to cover the essentials during your call Things like job title, salary, start date, usual hours, place of work, length of probation and, of course, the conditions. Then follow up in writing straight away, ideally within 24 hours. Email them the conditional offer letter and full contract. If you've got e-signature software, use it. It saves so much back and forth and gets everything done quickly.

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One key tip try to get that signed contract before they resign from their current job. It protects everyone involved and if, for whatever reason, you do have to withdraw the offer, do it quickly, ideally before they've met the conditions. And if they've already started making arrangements, booking travel, turning down other offers consider offering a goodwill payment. A week's pay now is a lot cheaper than a tribunal later. Oh, and save everything Notes, emails, offer letters, signed contracts. Stick it all in your HR system so you've got a nice paper trail if things ever get messy.

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Part six common pitfalls and how to dodge them. Let's look at some classic trip ups. First, never say welcome aboard before you've mentioned any conditions. As lovely as it is, it can land you in a bind if they take that as confirmation. Don't let someone resign from their current job without sending the formal offer and getting it signed Once they've quit. You've got a moral and possibly legal problem if you change your mind. And don't assume verbal offers don't count just because HR hasn't done the paperwork yet. The tribunal doesn't care about your internal processes. It cares about what was said and agreed. Right to work checks are another easy one to forget. But if you haven't done them before they start, you lose your statutory excuse if they turn out not to have the right to work. Finally, be careful with over-promising. Don't say someone will get a bonus unless it's contractual. Say discretionary. If that's what you mean, clarity is your friend.

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Part 7. Faq time. What do people always ask me about verbal offers? Q, if the person hasn't started work yet surely it's not binding A? Wrong. If you've made an unconditional offer and they've accepted a contract exists, you'll need to give notice or pay in lieu. If you back out, can I say something casual like we'd love to have you? Without it being binding A? You can, but be super clear, you're still waiting on formal checks. It's all about context and clarity. What if they start and I realise it's not a good fit in week one? A? That's where your probation clause kicks in. But you still need to follow notice periods. And be fair, can I rely on subject to references after they've accepted A? Nope, you've got to say it before they accept, otherwise it's not enforceable.

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Part eight practical takeaways. What should you do right now? Right, if you do nothing else after listening to this episode, do these five things. First, write yourself a little script for offer calls. Doesn't have to be fancy, just enough to make sure you cover the key details and conditions. Second, set up a workflow so you can get your contract sent the same day as the offer. Automation is your friend here. Third, never rely on memory. Keep notes, follow up by email and get everything in writing. It's not about distrust, it's about clarity. Fourth, train your hiring managers. They're the ones likely to make a quick verbal offer in the excitement of the moment. Make sure they know what to say and when and finally have a plan for what to do if you need to withdraw. Be honest, be fast and be kind. A little goodwill goes a long way. That's a wrap on today's episode of Buzzing About HR. That's a wrap on today's episode of Buzzing About HR. Hopefully, verbal offers feel a bit less scary now and you're ready to handle them with confidence and a splash of good humour Next time.

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We're diving into something every small business deals with the Great British Sickie. Yep, we're talking about unexpected absences, duvet days, mystery bugs and what all that time off is really costing your business Spoiler. It adds up fast. We'll look at how to manage it fairly, what your legal obligations are and how to spot the difference between genuine illness and a bit of Monday morning flu fog. What do they actually mean? Can you extend them and how do you deal with someone who's nice but not quite right for the job? If you'd like help with a conditional offer letter or want me to sense check your contract wording, just give me a buzz. Until then, keep buzzing, stay savvy and remember. If it sounds like a contract, it probably is one.

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