Rehiring Employees in PAC

What You’ll Be Able to Do

• Rehire a separated employee straight from PAC
• Choose between a New Contract (a clean fresh start) or an Existing Contract (keeps the employee’s original service history).
• Let the system re-activate pay elements and auto-fill any gap between termination and rehire with zero-pay periods, when rehiring onto the existing contract within the same tax year.

1. Overview

1.1 What Is Rehire?

Rehire is an action on a separated employee’s record in PAC that brings them back as an active employee. It offers two modes:

• New Contract — a fresh contract and fresh pay elements under the same employee ID.
• Existing Contract — re-engages the employee’s original record, preserving statutory service continuity: gratuity, leave accrual, social security continuity, probation status, and retirement-fund linkage.

1.2 Why Two Modes?

Not every return is the same. Someone coming back after a long gap, or into a substantively different role, is effectively a new hire — New Contract handles that. Someone returning after a short break, where tenure-based entitlements should carry straight through, needs Existing Contract instead, both are now available directly in PAC.

1.3 Who This Guide Is For

Role	What You Can Do
PAC Administrator	Rehire a separated employee using either mode, scoped to your assigned legal entity/country

2. Getting Started

2.1 Before You Start

Don’t see Rehire on an employee’s row? Rehire only appears for employees whose status is Separated/Inactive — it won’t show on an Active or Draft employee.

Both options greyed out? Either this employee has already been rehired once before, or their termination sits in the payroll period that’s currently open. See the FAQ below for what to do in each case.

2.2 Navigating to the Feature

Go to the PAC sidebar, open Employees, and switch to the Separated tab. Find the employee and open the “…” action menu on their row — a Rehire: flyout shows New contract and Existing contract.

2.3 The Two Modes at a Glance

Mode	What It Does	Use When
New Contract	a fresh contract, fresh pay elements.	The employee is returning to a substantively different role, or continuity of service doesn’t matter.
Existing Contract	Re-engages the original employee record and preserves statutory service continuity.	The employee is returning after a short break and tenure-based entitlements should carry over.

3. Rehiring an Employee

3.1 Rehire with New Contract

• From the Rehire flyout, choose New contract.
• A “Rehire > New contract” wizard opens, pre-filled from the employee’s prior record. Update Hire Date to the actual rehire date on the Job Details step.
• Step through Job Details, Personal information, Dependents, and Payment Method, filling in any new contract details.
• Click Rehire to save, then Activate to finalize.

Treat it as a fresh hire under the same employee ID, with no continuity logic applied.

3.2 Rehire with Existing Contract

• From the Rehire flyout, choose Existing contract.
• On the Job Details step, set Hire Date to the rehire date. Leave Original Hire Date as it is — this is what preserves service continuity.
• Review the remaining pre-filled steps (Personal information, Dependents, Payment Method) and adjust only what’s changed.
• Click Rehire, then Activate.

3.3 What Happens on Activation

• Status moves from Separated to Active.
• Hire Date is set to the rehire date you entered.
• Original Hire Date stays untouched (Existing Contract mode only).
• All fields set during termination — last working date, EOS reason, contract type, termination deduction rule, and so on — are cleared automatically.

4. Same Tax Year vs. Cross Tax Year

For Existing Contract, the system checks whether the rehire date falls in the same tax year as the termination date, and handles pay elements differently in each case.

4.1 Same Tax Year

Original pay elements are re-activated from the rehire date, and zero-pay gap periods are auto-generated for every payroll period between termination and rehire — used for audit and continuity, not for payment.

4.2 Cross Tax Year

The prior tax year’s pay elements stay closed. Fresh pay elements are created at current rates from the rehire date. Original Hire Date is still preserved, so statutory service continuity holds even across the tax-year boundary.

5. Things to Check After Rehiring

Check the Salary tab after activation to confirm the employee’s recurring pay elements are active for the new period. If a termination falls in the same period that’s currently open for payroll, use Revert Termination instead — Existing Contract is meant for a termination that’s already been paid out in a closed period.

6. Frequently Asked Questions

Both Rehire options are greyed out — why? Either this employee has already been rehired once before, or their termination sits in the currently open payroll period. Hover the disabled option for an explanation.

Do I need to manually add back pay elements after rehiring? For Existing Contract in the same tax year, the system re-creates the employee’s prior recurring pay elements from the rehire date. Check the Salary tab afterwards to confirm.

What happens to leave balances and gratuity? Existing Contract preserves the original hire date, so tenure-based statutory entitlements continue uninterrupted, including across a tax-year boundary.

Where do zero-pay gap periods show up? On the employee’s payroll history, for every period between the termination date and the rehire date, each with zero-value pay elements.

Can I rehire someone whose termination is in the current open payroll period? No — for Existing Contract, the system routes you to Revert Termination instead in that case.