Indiana Code Title 36. Local Government § 36-8-4-11

Sec. 11. (a) If it is necessary for the safety board to reduce the number of members of the police or fire department by layoff for financial reasons, the last member appointed must be the first to be laid off, with other members also laid off in reverse hiring order, until the desired level is achieved.

(b) If the department is increased in number again, the members of the department who have been laid off under this section shall be reinstated before any new member is appointed to the department.  The reinstatements begin with the last member laid off.

(c) A member who is laid off shall keep the appointing authority advised of the member's current address.  A member shall be informed of the member's reinstatement by written notice sent by certified mail to the member's last known address.  Within twenty (20) calendar days after notice of reinstatement is sent to a member, the member must advise the hiring body that the member accepts reinstatement and will be able to commence employment on the date specified in the notice.  All reinstatement rights granted to a member terminate upon the member's failure to accept reinstatement within that twenty (20) day period or five (5) years after the day on which a member's layoff begins.