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Fire and rehire

“Fire and rehire” describes a practice where employers dismiss employees and then rehire them with new contracts on less favourable terms. The controversial practice, also known as dismissal and re-engagement, is often seen as a last resort for employers who need to make significant changes to the terms and conditions of employment but are unable to reach an agreement with the workforce or trade union representatives. Critics argue that fire and rehire is an exploitative practice that undermines workers’ rights and job security. In 2024 the UK government announced a code of practice to deter fire and rehire practices, with employment tribunals being given the power to uplift compensation by 25% where the code has not been followed.

    • Fire and rehire
    • Employment law
    • Latest News

    Employment Rights Bill U-turn unlikely, say legal experts

    by Jo Faragher 10 Sep 2025
    by Jo Faragher 10 Sep 2025

    Lobby groups hoping that the Employment Rights Bill will be shelved or materially changed are likely to be in for a disappointment, according to legal experts.

    • Fire and rehire
    • Zero hours
    • Department for Business and Trade (DBT)

    Reshuffle sparks fears over Employment Rights Bill

    by Jo Faragher 8 Sep 2025
    by Jo Faragher 8 Sep 2025

    A reshuffle of top government positions after the resignation of deputy prime minister Angela Rayner has sparked concerns about the future of the Employment Rights Bill.

    • Collective redundancy
    • Fire and rehire
    • Employment law

    P&O Ferries boss who steered 800 sackings steps down

    by Jo Faragher 29 Aug 2025
    by Jo Faragher 29 Aug 2025

    According to a statement given to the BBC, Peter Hebblethwaite is resigning to ‘dedicate more time to family matters”.

    • Fire and rehire
    • USA
    • Industrial action / strikes

    Unite hails victory in fire and rehire dispute with US hot dog giant

    by Adam McCulloch 25 Jul 2025
    by Adam McCulloch 25 Jul 2025

    About 550 workers at US company Oscar Mayer in Wrexham had been involved in 200 strike days between September 2024 and April 2025.

    • Fire and rehire
    • Employment law
    • Latest News

    Ministers loosen fire and rehire proposals in Employment Rights Bill

    by Adam McCulloch 10 Jul 2025
    by Adam McCulloch 10 Jul 2025

    Fire and rehire proposals in the Employment Rights Bill are being amended by ministers to offer employers slightly more leeway.

    • Acas
    • Fire and rehire
    • Zero hours

    Government publishes ‘roadmap’ for Employment Rights Bill

    by Nic Paton 2 Jul 2025
    by Nic Paton 2 Jul 2025

    The government has published an ‘implementation roadmap’ for the Employment Rights Bill, confirming that, once the Bill has made it...

    • Fire and rehire
    • Employment law
    • Latest News

    When will the Employment Rights Bill become law?

    by Adam McCulloch 26 Jun 2025
    by Adam McCulloch 26 Jun 2025

    The Employment Rights Bill is unlikely to become law until at least the autumn as it remains subject to amendments in the House of Lords. 

    • Fire and rehire
    • Employment law
    • Latest News

    House of Lords to resume scrutiny of Employment Rights Bill

    by Adam McCulloch 30 May 2025
    by Adam McCulloch 30 May 2025

    The House of Lords will resume their detailed scrutiny of the Employment Rights Bill at committee stage on Tuesday 3 June.

    • Fire and rehire
    • Employment law
    • Latest News

    Fire and rehire: the relocation question

    by Darren Newman 22 May 2025
    by Darren Newman 22 May 2025

    Under new fire-and-rehire rules, even the most reasonable employer could face unfair dismissal claims if it tries to relocate staff.

    • Fire and rehire
    • Zero hours
    • Employment law

    CBI chair Soames accuses ministers of not listening over Employment Rights Bill

    by Adam McCulloch 16 May 2025
    by Adam McCulloch 16 May 2025

    At the Acas 2025 conference in Westminster, Soames accused the government of failing to listen to businesses's concerns about the proposals.

    • Fire and rehire
    • Zero hours
    • Collective bargaining

    Employment Rights Bill must be tightened to protect workers

    by Adam McCulloch 1 May 2025
    by Adam McCulloch 1 May 2025

    The IER argued that the proposals concerning fire and rehire would still allow employers to dismiss and re-engage staff under vaguely defined ‘likely financial difficulties’.

    • Fire and rehire
    • Employment law
    • Latest News

    Lords criticise ‘opaque’, ‘on-the-hoof’ Employment Rights Bill

    by Rob Moss 30 Apr 2025
    by Rob Moss 30 Apr 2025

    Peers criticise number of amendments government is making to the Employment Rights Bill, as they debate legislation in the House of Lords.

    • Fire and rehire
    • Employee relations
    • Employment law

    P&O Ferries scandal: Employment Rights Bill must protect seafarers, urge unions

    by Adam McCulloch 17 Mar 2025
    by Adam McCulloch 17 Mar 2025

    New laws will help seafarers but further specific action needs to be taken by ministers.

    • Collective redundancy
    • Fire and rehire
    • Employment law

    Employment Rights Bill: Collective redundancy protective award doubled

    by Rob Moss 4 Mar 2025
    by Rob Moss 4 Mar 2025

    Employment Rights Bill amendment doubles maximum protective award when employers fail to comply with collective redundancy obligations.

    • Fire and rehire
    • Collective redundancy
    • Agency workers

    Agency workers to be included in zero-hours clampdown

    by Rob Moss 4 Mar 2025
    by Rob Moss 4 Mar 2025

    Agency workers included in ban on ‘exploitative’ zero-hours contracts, as government tables amendments to the Employment Rights Bill.

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