Rehiring an Employee

There are a few things to be aware of when re-hiring an employee. Spending 5 minutes reading this article now, could save you a lot of admin later, so we'd definitely recommend giving it a read!

What to do when rehiring an employee

Some care should be taken when re-hiring an employee. If they are being re-hired on a different rate of pay or payment frequency, their tax residency or band has changed, or you paid out personal leave on their Final Payslip (i.e. made an employment termination payment) you should instead create a new employee record. This will ensure any corrections to their previous period of employment are not based upon their existing data and will ensure accurate reporting.

If you do choose to re-hire an employee (on identical terms and conditions as previously), note that their leave balance will be reset to the opening balance in the employee record upon re-hire (as it assumed their leave will have been paid out or lost upon the end of their first employment period).

If in doubt, we recommend creating a new employee record. It's always the safer way!

What's the difference between an Active/Inactive employee and a Hired/Terminated employee?

The Active/Inactive switch for employees is only used to determine the plan of your Easy Payslip subscription. For example. if you are on the 1-4 employees plan, you cannot activate more than 4 employees.

This concept is entirely separate from the notion of hired/terminated ("employment ended").

An employee that is currently hired will generally be 'active' so that you can create payslips for them (but could be made 'inactive' if their employment is paused for a while, which could enable you to change your Easy Payslip subscription plan and save some money!)

An employee that is terminated ("employment ended") will generally be 'inactive' (but could be briefly made 'active' should you need to correct a payslip from during their employment period). The process of creating and lodging a Final Payslip STP will automatically set an employee to be 'inactive' and also 'Employment Ended'.