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Unless there is a specific reason or agreement that forbids it, they can hire anyone they choose. Back in the 80s, the word "lay off" changed from meaning "take leave of a job with the probability of being reinstated when economically possible" to meaning "fired with a recommendation".

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Q: Can you be laid off due to lack of work then the employer hires someone else a few months later when business picks up despite the fact that they know you are still not working and like to return?
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