fire and rehire

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The practice of fire and rehire has hit the headlines and been the topic of political debate in recent years. While the current UK government has rejected calls to outlaw entirely the practice, in early 2022 it committed to introducing a statutory code of practice to set out expected standards of behaviour and best practice.

Our blog from 13 February 2023 considered the draft code as the consultation was launched. We now provide an update on the content of the new Code and explores some challenges and tips for employers faced with navigating a change of terms and conditions once the Code comes into force, including the punitive sanctions for non-compliance, as well as a look ahead to what might change if we have a change to a Labour party government in the next 12 months.Continue Reading Developments with the UK’s ‘fire and rehire’ clampdown: what’s next?

The practice of ‘fire and rehire’ (i.e. dismissal of an employee and offering re-engagement on new, usually lesser, terms) as a way to facilitate a change to terms and conditions of employment has been under the spotlight in recent years. It is not a new strategy as a way of making changes to employment contracts, nor is it unlawful if handled properly, but the tactic has been subject to increased scrutiny in recent years as cases of misuse by some employers have hit the headlines.

In autumn 2021, legislation curbing dismissal and re-engagement was shelved by the government and replaced with a commitment for updated and more detailed Acas guidance. That guidance (which is not binding) focusses on the importance of thorough and constructive consultation with staff to explore all alternative options to terminating employment, describing fire and rehire as ‘a last resort’.

Fast forward a few months, and the government has announced that we can now also expect a new Statutory Code of Practice on fire and rehire intended to crackdown on the inappropriate use of the tactic, with increased punitive financial sanctions for non-compliance.

As always, the devil will be in the detail. The new Code is expected to set out the consultation process to be followed where there are proposed changes to terms and conditions, and to give practical steps for employers to follow. It is also expected that an additional 25% penalty (on top of the existing punitive sanctions) will be levied where an employer deploys fire and rehire tactics without first having made reasonable efforts to reach agreement through consultation, or where there is otherwise unreasonable non-compliance with the Code.
Continue Reading Fire & rehire clampdown: will a new Statutory Code of Practice help?