In the sports world, it makes headlines when someone like basketball coach Billy Donovan walks away from a signed contract.
But when it happens in the business world, the silence can be deafening. If a potential hire backs out after signing on the dotted line, employers find the situation embarrassing and difficult to pursue legally, so, invariably, they just let the person go, career and legal experts say.
But while someone who has second thoughts and backs out of a job commitment may not face legal penalties, they are likely to leave a dark stain on their career, pros say, and risk becoming persona non grata in their industry and facing an uphill battle for other employment opportunities.
Career experts cite a number of reasons why someone would have a change of heart: a spouse who isn't happy with the career move, a lower-than-expected salary, concerns about the direction an organization is headed, or a more enticing job opening coming up somewhere else.
Or, as with Mr. Donovan, the cause could be buyer's remorse. In early June, he walked away almost immediately from a five-year, $27.5-million (U.S.) contract with the National Basketball Association's Orlando Magic, and went back to his job as head coach at the University of Florida, where he had become beloved for leading the Gators to back-to-back NCAA championships.
Regardless of the reason, there is never an easy way to explain to a would-be new employer that you don't want to work with an organization after agreeing to its offer, says Jim Carlyle, a partner with Western Management Consultants, an organizational consultancy in Toronto. "You have to believe that the person walking away isn't going to be leaving a good impression behind," Mr. Carlyle says.
Employment lawyer Norman Grosman, a partner in the Toronto firm Grosman, Grosman and Gale LLP, says he has heard of instances in Canada where employees have reneged on signed contracts, but he could not find a single case that has ever gone to court.
Not only is it difficult to pursue legal action but it wouldn't bring an employee back. "It is important to note that the courts cannot order someone to work if the person doesn't want to work," says Janice Payne, a senior partner for the Ottawa-based firm Nelligan O'Brien Payne LLP.
To get a legal ruling against an employee, an employer would have to prove there were losses - such as headhunting fees or the cost of extra staff - because of the unexpected departure. But the time and cost of bringing such a case to court means employers choose to settle out of court or just drop the issue, Ms. Payne says.
While legal action is unlikely, that's not to say someone backing out of a contract won't pay a career price in lost reputation. News travels fast in the business world, Mr. Grosman says. "Breaching a contract could reflect poorly on the person with any future employer."
So if you do decide to cut ties with an employer you've promised but not delivered on working for, make sure you do it as quickly and cleanly as possible, Mr. Carlyle advises. If you're having second thoughts, it's better to leave before you start with the company, rather than after you come in and it makes further investments, he says.
It also pays to be contrite. "Formally making an apology and explaining why you did what you did would be the honourable thing to do," Mr. Carlyle says. "At least you're facing it head on rather than just running away and saying: 'What's the big deal?' "
Mr. Carlyle recalls being on the employer side of a negotiation and, even though he thought a deal had been struck, the potential employee walked.
"We made a handshake deal and the guy reneged. But he was very quick to apologize and explain his reasoning."
That made the parting at least amicable. "There was a period in which I was angry, but no one was sending me flowers to cheer me up." The lesson he learned was "there's nothing else you can really do but wish each other the best and move on," Mr. Carlyle says.
It may also help to agree to some terms that might make the reversal more palatable to the jilted employer. For instance, while the Magic agreed to release Mr. Donovan from his contract, it demanded as a condition that he agree to a non-compete clause that bans him from coaching in the NBA for the next five seasons.
From an employer's perspective, Mr. Carlyle recommends probing in the interview process with specific questions to gauge a potential candidate's level of commitment, such as any reasons why they've left previous employers or if they are facing any personal situations that may clash with the requirements of the job.
Any vagueness in answers might raise cautionary flags that should prompt additional discussion and inquiries to previous employers, says Dick Cappon, president of Coach Cappon Inc., a Toronto-based executive coaching firm.
"It's just due diligence to raise questions before it comes to a formal agreement," Mr. Cappon says. "Niggling doubts about commitment should be addressed directly with questions such as: 'Based on our discussions, are you confident that this is a position you can make a commitment to?' and 'Do you have any hesitation or questions about your ability to fulfill the commitment and honour your agreement?' "
There is a risk that too many questions could plant a seed of unease in the candidate, making them wonder about the employer's trust in them or raising doubts about whether they are right for the job, Mr. Cappon says. "But it should be looked at as the sign of an employer who is serious about having you."