Former Employee Rehire (Boomerang) Policy Template

Sometimes the best person for the job is someone who’s already worked here. Whether they left for a new opportunity, a personal break, or a career change, former employees often return with fresh skills, new perspectives, and a deep understanding of the company’s culture.

A clear rehire policy ensures that returning employees are evaluated consistently, fairly, and in alignment with business needs. It also helps clarify what happens to things like benefits eligibility, seniority, and compensation when someone rejoins the team.

This policy outlines eligibility criteria, the rehire process, and how prior service is handled for returning employees.

What the Rehire Policy Should Include

To be effective and fair, a rehire policy should cover:

• Purpose and scope: Why the policy exists and who it applies to
• Eligibility criteria: Who is eligible for rehire and who is not
• Time-based considerations: Whether prior service length or time away impacts rehire status
• Rehire application process: How former employees can apply and how they’re evaluated
• Treatment of prior service: How things like seniority, PTO, or 401(k) vesting are handled
• Compensation and role alignment: Whether returning employees retain their former title or pay
• Manager and HR responsibilities: Who approves rehires and what documentation is required
• Exceptions or special cases: For layoffs, reorgs, or other non-voluntary exits

Purpose of the Former Employee Rehire Policy

This policy is designed to:

• Provide a consistent process for reviewing and rehiring former employees
• Clarify how past performance and reason for departure affect rehire eligibility
• Maintain fairness and compliance in the hiring process
• Preserve institutional knowledge while encouraging new growth
• Support a culture of learning, growth, and second chances when appropriate

Sample Former Employee Rehire Policy

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Effective Date: [Insert Date]
Policy Owner: People Team / Talent Acquisition / HR Department
Last Reviewed: [Insert Date]

1. Policy Overview

[Company Name] recognizes that former employees may be a valuable source of talent and institutional knowledge. This policy establishes the guidelines for considering and rehiring individuals who previously worked at the company.

The company encourages the rehire of qualified former employees when it is in the best interest of the business and the individual meets the criteria outlined in this policy.

2. Who This Policy Applies To

This policy applies to:

• Former employees who voluntarily resigned
• Former employees who were laid off or impacted by organizational changes
• Former employees who completed temporary assignments or internships
• Employees terminated for performance or policy violations are not typically eligible for rehire, unless explicitly approved by the Chief People Officer or CEO

3. Rehire Eligibility

Former employees may be eligible for rehire if they:

• Left the company in good standing (e.g., proper notice, no outstanding disciplinary issues)
• Were not terminated for cause (e.g., misconduct, policy violations, or performance issues)
• Have been away from the company for at least [Insert duration, e.g., 6 months], unless rehired as part of a structured alumni return program
• Apply for a role for which they meet the current qualifications

Eligibility will be reviewed on a case-by-case basis by HR and the hiring manager.

4. Application and Review Process

Former employees must follow the standard application process and:

• Submit a current resume
• Apply through the company’s careers page or internal referral process
• Disclose their prior employment with the company on their application
• Participate in the full interview and evaluation process

Hiring managers and recruiters should collaborate with HR to review:

• The individual’s prior performance, conduct, and exit interview notes
• Any updates to the job description, compensation, or organizational structure
• Legal or benefits considerations tied to reemployment

Rehires require approval from the People Team and the hiring manager.

5. Rehire Status and Prior Service

Employees rehired within [Insert timeframe, e.g., 12 months] may:

• Have prior tenure count toward benefits eligibility or vesting (e.g., PTO accrual, 401(k) vesting)
• Be reinstated at their previous job level, title, or a new one based on experience and role alignment
• Be eligible for accelerated benefit enrollment if required by law or plan rules

Employees rehired after 12 months will typically be treated as new hires for benefits and onboarding, unless otherwise specified by HR.

6. Compensation for Rehired Employees

Rehired employees will be compensated based on:

• The pay range for the role at the time of rehire
• Market benchmarks and internal equity
• Their skills, experience, and contributions since leaving the company

Previous salary will be considered but does not guarantee pay continuity.

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7. Benefits and Seniority

For eligible rehires:

• PTO accrual may resume at the same rate if the break in service was less than 12 months
• 401(k) vesting may continue from prior service under the terms of the plan
• Health benefits will begin based on current new hire eligibility rules unless otherwise noted
• Seniority for internal purposes (e.g., promotion eligibility, tenure awards) may or may not reset depending on the time away

HR will communicate exact benefits treatment as part of the offer process.

8. Exceptions

Exceptions to this policy must be reviewed and approved by:

• The Chief People Officer, for rehires of individuals terminated for cause
• Legal and HR, for rehires into regulated or high-sensitivity roles
• The Compensation Team, for offers outside of standard salary bands

Each exception will be evaluated on a case-by-case basis to balance fairness, risk, and business needs.

9. Recordkeeping

HR is responsible for:

• Reviewing prior employment files
• Confirming final pay, benefits, and exit records before rehire
• Documenting rehire approvals and storing them in the employee's personnel file
• Updating internal systems to reflect continuous or non-continuous service, as applicable

Frequently Asked Questions

1. Can someone who was laid off be rehired?
Yes — in fact, former employees who were laid off due to organizational changes are often excellent rehire candidates, especially if the business need has returned.

2. If I refer a former employee, can I still get a referral bonus?
Yes, assuming they haven’t worked at the company within the last 12 months and meet the eligibility for referral bonuses under the Employee Referral Program.

3. Can a rehire skip onboarding?
All rehired employees are expected to complete onboarding, though it may be abbreviated depending on how recently they worked here and how much has changed.

4. Will my PTO balance from before carry over?
No, but your prior tenure may be counted toward your accrual rate depending on how long ago you left. Check with HR to confirm.

5. What if the former employee left on difficult terms?
Employees who left involuntarily or with unresolved issues are generally not eligible for rehire unless explicitly approved by the People Team and executive leadership.

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