The devastating and lingering impact of the coronavirus indicates that a full reopening of the economy may be further away than most hope. But for employers looking to staff up after early COVID-19 layoffs, find out what you need to know when rehiring previously employed and furloughed workers.
When the coronavirus outbreak spread across the country, employers were forced to shut down or completely rework their business models. The result? Mass layoffs and furloughs, totaling one of the worst unemployment rates in American history.
Employers typically use furloughs to retain staff that they can’t afford but don’t want to layoff, and there are certain legal requirements for each. For a more expansive understanding of the four key differences between a furlough and a layoff, consult the following blog.
For employers who have seen an uptick in business, bringing back furloughed workers is relatively seamless because they’re still employees. Yet for rehiring layoffs, HR administrators need to take the following steps:
The same National Law Review article warns that employers should be cautious about who and why they select to recall and rehire. There could be challenging legal implications at play, especially if a former employee isn’t brought back and suspects that the decision might have something to do with their protected class status, which can “bring a disparate treatment claim.”
The author suggests that to avoid this potentially damaging litigation—and avoid infringing on your workers’ rights—develop a written reopening plan that determines the most valuable skills needed to be successful. Be as specific as possible, and include detailed reasoning for your actions. An article in SHRM also backs up this approach.
Honesty and transparency go a long way in building and maintaining trust with employees. A rehire offer is no different.
In your rehire communication, outline the following talking points:
Use the following template:
Hi [name],
I’m reaching out today regarding your former position at [company name], which was recently eliminated due to COVID-19 downsizing. At this time, I’m pleased to inform you that [company name] has reinstated the [position name] role and is extending you a formal rehire offer to rejoin our team.
We’ve reinstated the role because [explain why the position has been reinstated]. Our rehire offer includes your [full-time or part-time] [exemption status] wage of [wage] at [hours] per week, and you’ll report to [name of manager]. Regarding your benefits, [include information about PTO, seniority, and benefits elections].
[include other terms of employment, if applicable].
[Company] has also implemented a number of policy changes to keep our entire team safe during the pandemic. These include [policy changes].
We’ve set a planned start date of [date]. If you accept our rehire offer, please sign this letter and respond by [date].
Finally, I want to take this chance to say thank you on behalf of [company] for your [previous employment duration] of service. These past several months have been unprecedented for everyone, but I’m confident we’ll be able to bounce back stronger than ever.
I look forward to hearing from you soon.
Thank you,
[name]
Your organization may look very different from when your employee was originally hired. While they might be familiar with the ins and outs of company culture and their role, dedicate time to instructing rehires about the new processes that have been implemented since their departure.
If your employee accepts a rehire offer, consider covering the following topics during their onboarding:
Businesses that applied for relief funding using the PPP must adhere to certain criteria for these loans to be partially or completely forgiven. In updates that were instituted in the Paycheck Protection Program Flexibility Act (PPPFA), the following staffing requirements were included:
*Note: According to the Small Business Administration (SBA), if an employee refuses your rehire or return-to-work offer, you can still qualify for loan forgiveness so long as your organization “made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower.”