- 1). Contact the Human Resources department to identify the names and contact information for the employees you laid off. Review performance reports on the laid off employees, and consult supervisors to determine which workers would be best to hire back. You don't want to rehire problem or underperforming employees.
- 2). Pair potential rehires with open positions that need to be filled. If you plan to assign different responsibilities to rehired employees, you need to communicate this clearly when you speak to them. Take into account employees may need training to perform effectively in their new roles.
- 3). Discontinue severance benefits for those employees you plan to rehire. This protects you from paying double for severance benefits and a regular paycheck when the employee returns to work.
- 4). Contact the employees you want to rehire. Rehired employees need to notify Michigan's Unemployment Insurance Agency (UIA) to suspend their unemployment benefits. Employers aren't required to notify the UIA when they rehire an employee. The UIA automatically picks up the information when payroll forms are filed with the state.
- 5). Reinstate employee benefits for applicable portions of the company's employee benefits package. For instance, if the rehired employee participated in your company's 401(k) plan, his prior service should count toward his vesting requirements. If the break in service is longer than the period worked or greater than five years, the IRS allows employers to disregard prior years of service. Reinstate employees into the company's medical plan if there's no waiting period.
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