COVID-19 has affected business across all sectors. Whether that’s operationally or financially, or both, it’s resulted in many redundancy cases.
Now that restrictions have relaxed, businesses have reopened and experts are expecting an economic boom as consumers begin spending again. And yet, the question remains: what about employment after redundancy?
Key considerations
If you’ve made an employee redundant but since reopened, and business is picking up once again, you may need to recruit some staff. If so, there are two key points to consider:
1. Timeframe
If recruiting within the first six months following an employee’s redundancy, you need to approach them first to offer the vacant role. If you don’t do this, then your former employee could raise a claim questioning the rationale of the redundancy in the first place.
However, as time goes on, the risk decreases. Following six to 12 months, you can argue the need to offer the redundant person the role in the first instance. However, our advice would be to make them aware and at least allow them to apply for the role. In this circumstance, your normal recruitment policy and procedure applies.
Bear in mind that if an employee has sought and obtained employment elsewhere, then they may refuse the new role. In this circumstance, you would not be at risk as you have met your obligations to ensure previous employees are either offered the role or at least given the opportunity to apply.
2. Continuity of service
From a legislative point of view, a break in service of a week or more means that length of service does not carry forward. Thus, the continuity of employment is lost. A new contract, new probationary period, and new terms can all therefore apply.
It’s important to note in the new contract that no previous employment history would constitute a continuation of said service. This is an added precautionary measure to ensure no employees attempt to raise a concern of their length of service and, if ever in a position in court, that you can always fall back on your contract of employment.
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