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A Rejection Letter is a formal written response that tells someone their application, proposal, or request has been denied. Companies commonly use these letters to inform job candidates they weren't selected, while banks send them to explain loan application denials. In business settings, they're also used to decline vendor proposals or partnership offers.

Well-written rejection letters help organizations avoid legal issues by documenting their decisions and maintaining professional relationships. Under U.S. employment laws, these letters can serve as important records showing fair hiring practices, while financial institutions must include specific reasons for credit denials as required by the Equal Credit Opportunity Act.

Send a Rejection Letter when you need to formally decline someone's application, proposal, or request in a professional and legally sound way. This includes responding to job candidates after interviews, declining vendor proposals, or turning down business partnership offers. A prompt, clear rejection helps maintain goodwill and reduces the risk of discrimination claims.

The timing matters - send job rejection letters within 1-2 weeks of making your decision. For financial institutions, federal regulations require prompt written notifications when denying credit applications. Many companies also use these letters to decline unsolicited business proposals, protecting themselves from claims of implied contracts or unfair dealing.

• Rejection Letter After Interview: Standard post-interview response focusing on candidate qualifications and fit
• Letter For Unsuccessful Applicants: Brief notification for candidates not selected for interviews
• Interview Failed Thank You Letter: Detailed feedback-oriented rejection maintaining positive relationships
• Polite Rejection Letter: Generic template suitable for various business situations
• Business Proposal Rejection Letter: Formal response declining vendor or partnership proposals

• HR Managers: Draft and send most employment-related rejection letters, ensuring compliance with labor laws and company policies
• Hiring Managers: Review and approve rejection letters for candidates they interviewed, often providing specific feedback
• Bank Officers: Issue formal rejection letters for loan applications, following federal lending regulations
• Procurement Teams: Write vendor proposal rejections and manage supplier relationships
• Legal Department: Reviews sensitive rejections and ensures compliance with anti-discrimination laws
• Business Development Teams: Handle partnership and proposal rejection letters for strategic initiatives

• Basic Details: Gather the applicant's name, position/proposal details, and date of application or interview
• Decision Records: Document specific reasons for rejection to support fair decision-making
• Legal Requirements: Check industry-specific regulations, like ECOA for lending or EEOC guidelines for employment
• Tone Selection: Choose appropriate language based on relationship and future opportunities
• Timeline Review: Note important dates and response deadlines
• Approval Process: Identify who needs to review the letter before sending
• Documentation Plan: Set up proper filing system for rejection records

• Date and Letterhead: Company details, recipient's name, and current date on official letterhead
• Clear Decision Statement: Direct but professional statement of rejection in first paragraph
• Reason Section: Brief, non-discriminatory explanation for the decision
• Future Opportunities: Optional statement about potential future applications or business
• Compliance Language: Industry-specific required disclosures (like ECOA notices for lending)
• Contact Information: Name and details of person to contact with questions
• Signature Block: Authorized representative's name, title, and signature
• Record Retention Notice: Internal note about document retention requirements

A Rejection Letter differs significantly from an Employment Offer Letter in several key aspects, though both are common in hiring processes. Understanding these differences helps organizations maintain clear communication and legal compliance.

• Purpose and Timing: Rejection Letters close the hiring process, while Offer Letters initiate employment relationships
• Legal Implications: Offer Letters create binding commitments when accepted, whereas Rejection Letters simply document a decision
• Content Requirements: Offer Letters must detail compensation, benefits, and work terms; Rejection Letters focus on diplomatic closure
• Risk Management: Offer Letters require careful drafting to avoid unintended contractual obligations; Rejection Letters focus on avoiding discrimination claims
• Record Keeping: Offer Letters become part of personnel files, while Rejection Letters support hiring practice documentation