jcalder
HR Administrtor
ibetX Limited
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Re-employ after redundancy?

Reemploy after redundancy

In August 2007 we had to make some cut backs, so two departments were merged together, and most employees in those areas were made redundant.

The company now seems to have picked back up, and we now need to re-employ in the areas that were made redundant. Although the job is very similar to what it used to be, it is not exactly the same.

How long after redundancies are made, can we re-employ staff in that area again?

Can we also go back to those that we made redundant and offer them a job, as we know that they will not need so much training?

I would be grateful of any information given. Thank you
Jodie Calder

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5th Feb 2008 11:20

An employee has 3 months after termination to put forward a claim for unfair dismissal. I would use this as a timeframe to start looking if the need for a vacancy arises.

Re-deployment is a brilliant idea - but there is a basis for which the employee left in the first instance (bottom of a selection criteria?) and I would also argue that a degree of bad blood could have developed with the employee - will they be made redundant again if the situation arises? In short I would not employ someone who had been made redundant purely for the psychological implications.

Not aware of the tax implications of re-employing someone once they had been made redundant - because they would go and work for another company and it would be business as usual?

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By kansel
19th Jan 2008 15:53

Are there not tax implications to consider when making someone redundant and then re-employing them within the same tax year?

Could you not have the situation where an employee (who after being made redundant was perhaps forced to take a lower paid job, or experienced loss of pension or other benefits)when notified that their original job is now being advertised less than 6 months later has rise to a claim?

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By rhayes
25th Jan 2008 15:29

We made a few redundancies in Nov 07 based on restructuring. As a result a team of 4 was reduced to 3. Now one of the remaining em'ees has resigning leaving a team of 2. The backfil (back to 3 heads) has been approved and we are thinking about potentially re-employing the person we made redundant. We have no policy about this so would be interested in hearing others views. 2mths have passed only. I couldn't find anything on HMRC about their views given the person received a tax-free payment. Any advice/thoughts would be appreciated.
Kind regards
Rachel Hayes

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By sjbeale
16th Jan 2008 14:48

There is no reason why you can't re-employ your old employees again as plenty of time has lapsed since they were dismissed particularly the challenge of unfair dismissal.

As you know them and their capabilities as you say the amount of training required will be reduced.

Sandra Beale FCIPD

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