About 40% of employers say they’ll rehire many employees who were let go during the downturn, according to a recent survey by OI Partners.

Higher numbers were in the industries most affected by the economic downturn. For example, half of respondents in the financial sector expressed interest in rehiring laid-off employees, along with 47% in the construction industry.

The reason: To avoid training costs, it makes sense to bring back people who already know the work and the company.

When the economy begins picking up, companies will need to consider whether they want to rehire employees who’ve been let go. Not handling that question properly got this company tangled up in a big court battle.

An employee was laid off when the company decided her department was overstaffed. The company offered her transfers to a few other positions, which she turned down for various reasons. She also inquired about other openings for which she wasn’t qualified.

Eventually a job opened that the ex-employee was qualified for, and the company’s HR manager called her to discuss the position. She said she was interested but claims she got no further information about the offer.

When she found out a few weeks later the job had gone to someone nearly 30 years her junior, she sued the company for age discrimination.

Who takes the next step?

The employee claimed she was told the job was hers, then never contacted again. But the company argued it put the ball in her court. The HR manager said she probably would’ve been given the job, but she never sent in an application, so she was never officially considered.

Who’d the judge side with?

The employee. The court noted previous offers the company made to her, which appeared to be straight offers without the need for applications or interviews. The inconsistency looked suspect to the judge, who denied the company’s motion to dismiss.

You know what that means — a hefty settlement or a long, costly trial.

Cite: Owens v. Wellmont, Inc.

No, says recruiting expert G.L. Hoffman of JobDig.com.

His logic: Taking back an employee who quit tells other employees they can leave and keep your company as a safety net.

Of course, not all experts share the same opinion. There are several good reasons to re-hire a former employee — most importantly, the company will know what to expect from the person’s work. When candidates have a good track record and the skills you need, it may not be smart to punish them for leaving.

But some managers and HR pros worry about potential retention problems — if this person already left once for another employer, should you expect the same thing to happen again?

The best way to find out is to get the details on why people are leaving their current employer. They may have been fired and really are just using your company as a safety net. That person likely will only stick around until another opportunity arises.

What do you think? Has your company rehired employees who quit? Did it work out? Let us know your experience in the comments section below.