Has your business ever considered rehiring a formerly terminated or laid-off employee? When companies struggle to find qualified applicants due to a limited talent pool, the easiest way to strengthen hiring efforts is by expanding the talent pool. While some companies may choose to evaluate remote employees as an option, another great strategy is to evaluate rehiring past employees. r However, evaluating a former employee’s eligibility for rehiring as well as reestablishing employment terms can be tricky. Employers need to consider the best possible approach that will satisfy both them and the rehired employee.

Can You Get Rehired After Being Terminated?

While the answer may not be obvious, it is possible for a terminated or laid-off employee to be rehired by their previous employer. In fact, when it comes to rehiring, who is eligible is entirely up to the discretion of the employer. However, employers should greatly consider the former employee’s history with the company, including their reason for termination, before beginning rehire negotiations.

Designing a Rehire Policy

To ensure a consistent and definitive process, businesses should establish a general policy for rehiring employees. Policies should be clearly outlined and written so that the staff can reference them when necessary. Even employers who choose not to allow rehiring options for their business should have a written policy in place that says so.

For employers willing to rehire, the most important thing to include in your rehire policy is the definition of your company’s stance on rehire eligibility and any exceptions. Employers may also want to consider including the application process required for rehiring and any contact information for the individual(s) responsible for handling rehire operations.

Eligibility for Rehire

When designing a rehire policy, employers must establish and directly communicate eligibility to their organization. 

When it comes to determining eligibility requirements, employers should start with the original reason for termination or, in general, why the employee left to begin with. It is important to understand the circumstances in which you DO NOT want to rehire an employee. 

Some common deal-breakers for rehiring an employee include:

• Whether the employee leaves voluntarily or involuntarily
• A broken employment contract
• Inappropriate or culture-clashing workplace behavior
• Disciplinary issues
• Poor performance

Employers should carefully evaluate these circumstances to determine when they want to rehire a former employee.

Form I-9 and Rehires

In addition to crafting a rehire policy for the company, employers must also consider the compliance requirements for rehiring employees, particularly regarding Form I-9. 

Depending on how long ago the employee left the company, they will have to reverify their existing Form I-9 for the employer reengaged OR refile a new form altogether.

The regulations established by the US Citizenship and Immigration Services regarding rehiring employees and Form I-9 employment verification go as follows:

• If an employee reengages with the employer within three years, the existing Form I-9 can be reverified by completing Supplement B
• If the employee reengages with the employer after three years have passed, a new Form I-9 must be filed to be verified for employment

Rehiring employees is just another reason to understand how to complete Form I-9.

Rehiring Tips and Best Practices to Follow

Here are some key tips and best practices to ensure an easy and effective rehire process:

Use Past Employee Data to Evaluate Your Candidate’s Skills

When considering rehiring a former employee, employers should make a well-informed decision, backed by previous employee performance data and relevant business analytics, to determine if the candidate is qualified to rehire for the role.

Using performance management software and relevant data from an HR analytics tool, employers will want to gather and review past performance. Some good places to start include:

• Productivity metrics and learned skills that measure the employee’s growth and development throughout their time with the company
• Rehiring costs, including the former employee’s previous compensation agreement
• Employee engagement scores

Negotiating Employment Terms for Former Employees

Given that some time has passed since the employee's termination, the former employee’s needs could differ from when they had previously worked at the company.

Negotiating new employment terms for rehired employees is not uncommon. The former employee may have certain requirements that differ from the initial employment agreement. Common requests or changes to employment terms when rehiring can include:

• An increase in employee compensation (salary or wage)
• A new job title or promotion
• Availability changes
• Requests for benefits changes

Onboarding Process for Rehired Employees

The onboarding process, or reboarding process for rehired employees, is still necessary when rehiring a terminated employee, regardless of how familiar the employee may be with the company or role. However, because of the employee’s pre-established skillset and familiarity with the company, a more focused onboarding approach may be better suited than a standard new hire approach.

Some onboarding objectives employers should cover when rehiring an employee include:

• Reintroducing the company culture, including core values and the mission statement
• Introducing new processes and tools that go into the new or original job role
• Reinforcing company policies and compliance requirements

Get Help with Rehiring Employees

Rehiring a former employee, particularly if they are terminated, requires a lot of careful consideration and precise policies. Establishing proper communication with the former employee for reengagement can reveal a set of unique challenges for an HR team to tackle.

Employers should have a well-informed plan and policies set in place to set the standard for rehiring throughout the company. In addition, taking the right steps when rehiring a terminated employee is key to ensuring a smooth transition back into the company and its culture.

If your company needs support with rehiring employees or finding qualified talent for your organization overall, contact us today for further assistance.