End the contract by populating the contract end date.
Go to Admin Centre and you'll find the contractor in rehire inactive employee.
After you have rehired the employee is still markerd as Contingent worker
Until b1611 we'll have to run a script to fix this issue.
contingent worker permanent rehire , KBA , LOD-SF-EC-CWF , Contingent Workforce , LOD-SF-EC-HIR , New Hire/Rehire Wizards , Problem
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