Re-Employing or Re-Instating a Terminated Employee - UK
If the employee has been incorrectly terminated and you have not issued a P45 you are able to delete the P45 termination record if you have created one, remove the termination date on the employee record and continue paying them as usual, this will update HMRC on the next FPS submission.
If you have issued the employee with a P45, even if they have not actually left then you will need to treat them as a new starter.
If you are reinstating a terminated employee you will need to create a new employee record to ensure that all payroll information from their previous employment with your company is kept separately.
Please be aware - if you are trying to create a record with the same name and therefore Employee ID as an existing record you will need to edit the existing terminated record as you can only have unique Employee IDs (these are the record names).
Navigate to the terminated employee record and open in edit mode, untick "Auto" next to the Employee ID and then for example add "- OLD" or "-DNU" to this. This will also ensure you do not use the wrong record in the future. Example below:
Once done you will be able to create the new record.
Useful Links