Duplicated Employment Records

I am facing an issue with a scenario as the following:

an employee was terminated in 31-May and Rehired in 01-Jun due to his transfer from a company to another and the HR specialist tried to update the record but he was forced to select correction.

Now the issue is in both periods the employee person type is Employee when he suppose to be Ex-Employee in the previous period. I understand is that it's because there is no Gap between the 2 periods. this cause issues in the calculation for many allowances.

is there any solution to fix this knowing that the employee current period has been processed in the payroll run for few months and transferred to GL as well . Thank you