This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Have you been offered your old job back shortly after redundancy? Understand the impact on your employment status, continuity of service, and what you should consider before accepting.
Rehiring after redundancy raises important legal and practical questions for both employers and former employees. In England and Wales, redundancy refers to a dismissal by reason of redundancy when an employer no longer needs an employee's role due to business changes. Once redundancy has taken effect and any statutory redundancy pay has been made, there is no automatic bar on rehiring that person. However, employment law contains specific rules on continuity of service, statutory rights, procedural fairness and potential tribunal claims that both parties should understand. This article explains these issues step by step, including re‑employment timing, continuity rules under the Employment Rights Act 1996, legal risks, and common questions arising in practice.
Can an Employer Rehire a Redundant Employee?
No Mandatory Waiting Period
UK law does not impose a minimum period that an employer must wait before rehiring someone made redundant. An employer may re‑advertise a role, recruit a former employee back, or offer a new role at any time after redundancy takes effect. There is no statutory prohibition on rehiring, and redundancy pay does not have to be repaid when an ex‑employee returns to work. Employers must, however, be able to show that the original redundancy situation was genuine at the time; otherwise, an employee may challenge the dismissal as unfair.
Example: A business loses a major contract and makes roles redundant. A few months later it secures new work and rehires some of the same people. This is lawful if the earlier redundancy was genuine and reflects a change in business needs.
Continuity of Employment and Statutory Rights
Continuity for Statutory Rights
When an employee is rehired, continuous employment matters because it underpins statutory entitlement to redundancy pay, unfair dismissal protection, notice periods and other rights. The law distinguishes between preserved continuity and broken continuity:
- Preserved continuity: Under section 138 of the Employment Rights Act 1996, where an offer of re‑engagement (or contract renewal) is made before the original employment ends and is to start immediately or within four weeks after termination, the period between contracts (up to four weeks) is treated as continuous. This means continuity for many statutory rights is preserved.
- Broken continuity following redundancy pay: If someone receives a redundancy payment and is then rehired, statutory continuity for future redundancy pay is generally broken under section 214. The employee must build up at least two years of new qualifying service before becoming entitled to another statutory redundancy payment.
Note: A break of more than one week (Sunday to Saturday) also typically breaks continuity for other statutory rights unless covered by specific statutory provisions such as section 138.
Offers of Suitable Alternative Employment Before Redundancy
Before terminating a contract by redundancy, employers must consider suitable alternative employment within the organisation. If a suitable role exists, the employee should be offered it before their current position ends. Acceptance or rejection of such an offer can affect entitlement to redundancy pay. Suitable alternative employment must be genuinely comparable in pay, status and duties, and the employee has a statutory four‑week trial period to assess whether to remain in that role.
Example: If an employee is offered a suitable alternative role that begins within four weeks of their old contract ending and they accept, the original redundancy may not need to proceed, and continuity can be preserved under section 138.
Legal Risks When Rehiring After Redundancy
Unfair or Not Genuine Redundancy Claims
Where a former employee is rehired into the same or substantially similar role shortly after redundancy, they may argue the original redundancy was not genuine. In such cases, the employee could bring an unfair dismissal claim to an employment tribunal within the statutory time limit of three months from the date of termination. Employers must be prepared to demonstrate a real and subsisting redundancy situation at the time of dismissal.
HMRC Scrutiny
Rapid rehiring after redundancy may attract scrutiny from HM Revenue & Customs (HMRC). If redundancies appear contrived to reduce tax liabilities (for example, to secure tax‑free redundancy pay), HMRC may investigate whether the redundancy was genuine and whether the categorisation of payments was appropriate.
Policy vs Contractual Terms
Some organisations include specific rehire policies or contractual terms restricting re‑application for a period after redundancy, but such policies are not legally binding against statutory rights and must be clear, lawful and applied consistently.
Practical Considerations for Employers
Document Business Reasons
When making redundancies, employers should document the business reasons, evidence of consultation and selection criteria thoroughly. This helps defend against claims that redundancy was not genuine if roles are later rehired.
Communicate Clearly
Employers should communicate openly with employees about redundancy and potential future opportunities. Clarity reduces misunderstanding and may avoid tribunal claims about fairness or misrepresentation.
Rehire Offers in Writing
Offers of re‑employment or suitable alternatives should be made in writing, specifying whether continuity will be preserved or whether a new contract with a break in service is intended.
Practical Considerations for Employees
Check Continuity and Contract Terms
Employees offered re‑employment should clarify whether continuity of service will be preserved and how this affects statutory rights such as unfair dismissal and redundancy entitlement.
ACAS Early Conciliation
Before making tribunal claims about unfair dismissal or redundancy legitimacy, employees generally must engage in ACAS Early Conciliation. This process provides an opportunity to resolve disputes without litigation.
Time Limits for Claims
Tribunal claims must usually be filed within strict time limits: three months less one day for unfair dismissal and six months for statutory redundancy pay disputes. Failure to meet these limits will generally result in the claim being dismissed.
Common Questions About Rehiring After Redundancy
Does re‑employment affect the redundancy payment I already received?
No. Former employees do not have to repay statutory redundancy payments when rehired, even soon after redundancy.
Can an employer recruit into a position soon after redundancy?
Yes. UK law allows recruitment at any time, but employers must be prepared to justify that the original redundancy was genuine if challenged.
Will my service be continuous if I return within a week?
If re‑engagement is effectively continuous under the statutory rules (for example, offered before the old contract ends and starting within four weeks), continuity can be preserved for many statutory rights. Otherwise, continuity may be broken.
Does re‑hiring reset my service for redundancy pay?
Yes. Even where continuity for other rights is preserved, the receipt of redundancy pay and subsequent re‑employment breaks continuity for future statutory redundancy pay entitlement, requiring a fresh qualifying period.
Key Takeaways
Rehiring after redundancy in England and Wales is legally permitted at any time following a redundancy dismissal. Employers must carefully manage continuity of employment and demonstrate that the original redundancy was genuine, particularly if similar roles are re‑advertised. Statutory rules under the Employment Rights Act 1996 allow continuity for certain rights where re‑engagement occurs promptly, although redundancy pay continuity is separately governed. Both employers and employees should be mindful of tribunal time limits, documentation, suitable alternative employment duties and the potential for HMRC scrutiny where redundancies and rehires occur in close succession.
