How do I reinstate an employee correctly?

Updated Rehiring Process

We have reviewed our rehiring processes, and have updated these now to accurately reflect how the accuracy of the process works.

If an employee is terminated and finds new employment, but later returns to your business, this employee would need to be rehired. HMRC require a new employee number each time a person changes employer and this is to distinguish employment history.

Because of this, The “undo this decision” option has been enhanced to only allow a decision to be undone if a genuine mistake has been made while terminating an employee. Or if the employee has redacted their notice. This option will now only be available for 7 days from when the termination was actioned.

If you wish to undo the leaver within the next 7 days, the below pop up will appear.

Please read these options carefully to be sure one of them applies before confirming.

If you wish to undo a leaver, but the 7 day threshold has passed, a different message will show, as seen below:

This message prevents you from rehiring the employee outside of the 7 day deadline.

If you wish to rehire an employee who had previously left your business, a new employee profile will need to be created. This is to ensure a new employee number is generated and HMRC can easily understand the individual’s employment history, based the leave date previously submitted.

This new process ensures that HMRC can apply the correct tax rules for each individual, meaning there is no impact to the employee.