Recall rights: Overview, definition, and example
What are recall rights?
Recall rights refer to the legal right of an employee to be rehired by their employer after being laid off or temporarily dismissed, usually within a certain period and under specific conditions. Recall rights are commonly outlined in union contracts, collective bargaining agreements, or employment policies and often apply to employees who have been laid off due to business conditions, such as a downturn in sales or temporary restructuring. These rights give employees priority for reemployment when the employer resumes hiring or when business conditions improve.
For example, if your business had to lay off workers during a slow season but anticipates needing more staff when business picks up, employees with recall rights could be rehired before new applicants are considered.
Why are recall rights important?
Recall rights are important because they provide job security for employees who might otherwise fear permanent job loss in the event of a temporary layoff. These rights help maintain good relationships between employers and employees by offering a clear pathway to reemployment and ensuring that employees feel valued and have a chance to return to work when conditions improve.
For SMBs, offering recall rights can help attract and retain employees, particularly in industries with fluctuating demand, while also reducing turnover and the costs associated with hiring and training new employees after a layoff.
Understanding recall rights through an example
Imagine your business runs a seasonal retail store. During the off-season, you temporarily lay off some employees due to a decrease in business. However, you include recall rights in their employment contracts, meaning that if the business picks up again during the busy season, these employees are given priority to be rehired over new applicants. When the busy season arrives, you recall your former employees and offer them the opportunity to return to work.
In another example, if your company is undergoing temporary layoffs because of an economic downturn, employees with recall rights may be called back to work as soon as the financial situation improves, providing them with job stability and reducing the impact of unemployment.
An example of recall rights in action
Here’s how recall rights might be referenced in an employee handbook or union contract:
“Employees who are laid off due to business conditions shall have recall rights for a period of 12 months following the layoff. During this time, the employee shall have priority for reemployment before external candidates are considered for available positions.”
Conclusion
Recall rights provide employees with the ability to be rehired after a temporary layoff, offering job security and ensuring priority for reemployment. For SMBs, including recall rights in employment agreements can help retain experienced staff, improve employee satisfaction, and streamline rehiring processes when business conditions improve. By managing recall rights effectively, businesses can maintain a stable workforce and reduce the costs associated with employee turnover.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.