Rehiring Dilemma: Should We Reassign Old Employee Codes to Returning Staff?

Hi friends, I have a very basic query for the group members: can we issue their old employee code to rehires? Would it be technically/logically correct to assign an employee, who was previously associated with the organization, their old employee code upon rejoining? Please advise.

Regards, Ankita

It's usually avoided for operational reasons. Whenever an employee leaves, their employee code/number is disabled from the database. Their PF and other statutory accounts are all linked to this—once you reactivate the same number/code, the chances of confusion with remittances/payouts only increase—especially during the intervening period. Though this can be handled by making the appropriate software changes, it may not be worthwhile to make the changes for one or two rehires. Hope you get the point. I am not sure of the legal angles, if any—please wait for other members also to respond.

Clarification Request

However, please clarify your reason(s) why you wish to reassign the old employee codes to the rehires—do you see any advantage(s), especially when it doesn't take time to assign fresh codes?

Regards,
TS

I would suggest assigning or creating a new employee code for that employee. It will help you understand things clearly and make a noticeable difference, as recommended by one of our members above. There is no legal obligation regarding this; it is a management decision and policy. However, it is advisable to opt for a new code if you are rehiring an employee.

Regarding your query, Ankita, it may be more appropriate to issue a new employee code to rehires rather than reusing their old one. This approach can help in maintaining clarity and organization within the system. Your concern about issuing the old employee code to a rehired employee is valid, and it is worth considering the implications of such a decision.

Please feel free to reach out if you need further clarification or guidance on this matter.

Regards,
Ankita

I totally agree with what TS posted earlier on this thread. Once the employee leaves an organization, the employee code is considered closed. Generally, most companies don't even reassign the code to another employee for record-keeping reasons. Since you are re-hiring, it is advisable that you open a fresh account for the employee. However, you could leave a footnote referring to their previous employee ID for documentation purposes.

My two cents.

Cheers,
AM

Yeah, I agree with you, Akilesh. Giving the same code to an employee after rehiring can cause a lot of confusion. If we assign a new code, i.e., a new employee ID, there will be no problems to evaluate.

We can issue the same code for rehiring or rejoining. Technically, it's not wrong, but we have to update their record in terms of joining date, EPF, EPF number, and update other compliance as applicable. In the remarks column of the database, we can mention that this employee has rejoined us.

Before quoting anything here, I would appreciate a discussion on the various aspects of the statements mentioned earlier. As an HR professional, it is important to consider cost-effective processes. Therefore, it is advisable to review the employee's contribution details. For instance, if an employee has made contributions for a minimum of 90 days in a contribution period, their previous ID can be used to access the amount paid to ESI. Additionally, consider setting a cap for EPF contributions for at least 3 months (90 days). You can then advise your ERP team to align their work accordingly, taking into account the reasons for the fluctuating interest rates on EPF amounts (which are influenced by the idle funds held by EPFO). While these actions may benefit some individuals, it is crucial to ensure that the true objective is not compromised.

I hope this perspective provides you with a different angle. 

Regards, Manish

Treat them as new employees for all purposes. Allot them a new code number except for ESI.

Regards

Your query has different parts:

Employee Code for Rejoining Employees

1. Giving an employee code to the same employee who is rejoining the company with a gap of a couple of months.

2. Giving the employee code of an old employee who already left to the new hires.

In my opinion, if any employee leaves the company and rejoins after a couple of months' gap, there is no problem in issuing the same employee code to them. In this case, you are rehiring the same employee, and there are different ways to show the gap in their job history.

Employee Code for New Hires

However, giving an old employee's code to any new hire may create some problems. For any new hiring, a new employee code should be issued to avoid any confusion in records. This practice will benefit both the employee and the employer.

Regards,
Meena

Any Employee Code is not allotted in isolation. It also has a Date of Joining. Therefore, in the case you have mentioned, it should be a new Employee code because the Date of Joining has now changed. This would also avoid hassle related to other qualification norms, e.g., 5 years of completed service for Gratuity.

Regards,
R. S. Patwardhan