Downsized then offer to rehire?

hhaynal

There is a possibility that the company may wish to rehire someone who is soon to be terminated as a result of downsizing. The company has not yet offered the person the position since we want to look at alternative candidates. If the person leaves the company with the severance package and then is later asked to return in a different role, what are the implications? Are there time limitations that should be considered? (i.e. we must rehire within 3 months of termination to accommodate pension reinstatement and/or other needs?)

Thoughts?

E Wart

May be its me and Monday morning... but why would you downsize someone in the first place if you want to "rehire" them? My rule of thumb is that you don't "eliminate" a position or job unless you won't fill it for 3-6 months.
E Wart

hhaynal

Company recently went through an organizational transformation process and after all the shaking and sifting, a small number of folks were left without anywhere to go. Each has been offered a severance package with a separation date coming up soon. This one particular individual's name came up with respect to a newly created position for which their skill set may serve. The company is thinking about offering this person the job, but wants to first see if there are other candidates with a better skill set.

E Wart

I know many companies that have done this and don't see a problem with it. However, what is your policy if you offer him the job and he doesn't take it. Are you going to stop his severance. (Normally in the offer when separated, you state that if it is equal or greater pay that they are offered and they turn it down, then severance would end. However, if it isn't their severance keeps going.) Also, are you making all the severanced employees aware of the job opening or just this one?
I just would be careful so that they know what their situation is if you do decide to offer it. Sometimes it gives employees a boost to know that employees are thought about this way.
E Wart

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 05-09-05 AT 06:16PM (CST)[/font][br][br]I don't know of any rules or law that requires you to observe a particular time period for rehire to be eligible for pension plans. Whatever the plan states must be followed and that's largely guided by the whims of the company.

You didn't ask for this guidance, but I will caution against bringing back a particular person and having a complaint alleging that it was discriminatorily orchestrated. Be careful to reduce all of the plan and your thoughts and intentions reduced to a good set of notes. A decent plaintiff's attorney can make mince meat of you if you haven't got a good defense.

Some might even think the management there wants this 'special person' to get a severence package, then be rehired and enjoy the cash.

hhaynal

Thanks for the comments and we'll be sure to keep everything documented, whatever we decide to do!