Reinstate an Employee Terminated in Error

If you have used the termination feature in Maxwell to terminate an employee and need to undo the termination, whether that is due to the employee changing their mind about leaving the company, or an administrative error that needs to be corrected, you have the option to Reinstate the Employee.

The Reinstate option should only be used if the employee was terminated in error and never actually ended their employment for any portion of time.

How to Reinstate an Employee

The option to reinstate will appear in the options drop down on the inactive employee's profile and will only be available for 30 days after the termination date.

When an employee is reinstated, we will do the following in Maxwell:

  • Set the employee’s status back to Active
  • Remove the termination date from the employee’s profile
  • Restore the previous benefit enrollments
  • Remove any related COBRA events

Additionally, when an employee is reinstated, if you have notifications set up, you and any other member of your administrative team can receive a notification. This serves as an alert to those that may need to be aware that the employee was reinstated.

Please note: If you have terminated or deleted benefits individually from the employee's benefits tab rather than using the Termination workflow in Maxwell, the Reinstate option will not restore previous benefit enrollments.

Follow the steps below to reinstate an employee in Maxwell:

Should I use Reinstate or Rehire?

  • Reinstate: If the employee was terminated in error and never actually ended their employment for any portion of time, you should use the Reinstate option to make this correction. This means that you are undoing the termination event in Maxwell.
  • Rehire: If the employee's employment with your company ended previously and the employee is now returning, you should use the Rehire option. Check out how to Rehire an Inactive Employee here >>

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Additional items to Consider

Depending on when the termination was initially entered and when the employee was reinstated in Maxwell you may want to be aware of the following:

  • If you do not have EDI and you’ve previously notified a carrier or other vendor of this termination, you should make them aware that the coverage was reinstated.
  • EDI: If you have EDI, depending on the timing of the termination, reinstatement and your weekly file, there is a chance that the employee’s termination was already sent to the carrier. However, when you reinstate the employee in Maxwell, the next EDI file will pick up their active coverage and let the carrier know that coverage was reinstated.
  • Payroll: The terminated employee will be dropped from any payroll reports and integrations, but  will be picked up once the employee is reinstated. You will want to make sure your payroll system is updated directly with any missed deductions. 
  • Reports: When first terminated, the employee will appear on the termination report and will drop from any enrollment & cost reports. They would also show up on the Change Report as a termination with terminated products.
    • When an employee is reinstated they will no longer appear on the termination report and will show up again on any enrollment & cost reports. The Change Report will continue to show any product changes related to being enrolled once again.
  • COBRA integrations: COBRA files from Maxwell are sent on a weekly basis on Mondays. After receiving a file, typically COBRA vendors act on sending the notice within 24 hours, so there is a chance the employee may receive a notice that they will need to disregard.
  • Open Enrollment:
    • If an employee was terminated after being included in your Open Enrollment setup, when you reinstate the employee, they will be automatically added back into the Open Enrollment event.
    • If the employee was terminated prior to you setting up your Open Enrollment, you will need to manage their open enrollment separately through an Individual Open Enrollment Event. You can learn more about Individual Open Enrollment events here.
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