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PeopleSoft termination Process

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Hi
This is my scenario..
Employee wants to quit the company and informed the same to hr. Hr has discussed the so n so with employee , accepts his resignation and gave notice period for 3 months. During the 3 months employee hv to work for company and the same time he has to clear all the benifits to the company. If the employee decides to stay back in the same company during notice period. he can withdraw his resignation., so that in peoplesoft employee should be hired again.

For the above scenario. what is the process should i do?? someone please help me.. I'm new to this module...
It would be appreciate for any suggestion