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The often-controversial practice of “fire and rehire,” where employers dismiss and then re-engage employees to alter their terms and conditions of employment, often leads to significant conflict between employers, employees, and trade unions.
To address this, a statutory Code of Practice on Dismissal and Re-engagement was introduced last month (on 18 July) outlining the responsibilities of employers when seeking to change contractual terms and conditions. The Code emphasises that dismissal and re-engagement should be used only as a last resort.
Importantly, employment tribunals now also have the authority to impose a 25% uplift on an employee’s compensation if an employer unreasonably fails to adhere to this Code when applicable. This serves as a strong incentive for employers to carefully consider their actions before resorting to such measures.
Click HERE to read the latest version of the Code which was updated on 30 July (amendments effective from 18 July 2024). Amongst the updates is an addition to Section 52 which now specifies that employers should only change terms that have been part of the information-sharing and consultation process, and not use this as an opportunity for further changes. Other minor revisions have also been made throughout the Code but these do not affect the substance of the Code.
Please get in touch if you have any questions regarding the issues discussed in this article.
E: help@jma-hrlegal.co.uk / T: +44 (0)1252 821792
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