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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
    • 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
    • Collective bargaining
    • Employee relations

    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.

    • Collective redundancy
    • Fire and rehire
    • 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.

    • Fire and rehire
    • Employment law
    • Latest News

    Post Office fired and rehired IT staff on hugely inflated pay rates

    by Adam McCulloch 23 Dec 2024
    by Adam McCulloch 23 Dec 2024

    The Post Office's ‘flipping’ practice saw staff sacked then rehired as contractors on inflated rates.

    • Fire and rehire
    • Employee relations
    • Latest News

    Tribunal uplifts for ‘fire and rehire’ code breaches to take effect

    by Jo Faragher 9 Dec 2024
    by Jo Faragher 9 Dec 2024

    Employers that fail to comply with the statutory code of practice on dismissal and re-engagement could be forced to pay more from January next year.

    • Fire and rehire
    • Agency workers
    • Zero hours

    Recruiters issue ‘urgent warning’ over Employment Rights Bill

    by Adam McCulloch 6 Dec 2024
    by Adam McCulloch 6 Dec 2024

    As key consultations on the Employment Rights Bill draw to a close, the recruiters' body warned that the Bill was 'undercooked' and needed changing.

    • Collective redundancy
    • Fire and rehire
    • Financial penalties

    Consultation: Fire and rehire and collective redundancy

    by Rob Moss 22 Oct 2024
    by Rob Moss 22 Oct 2024

    Government launches consultation on reforms to strengthen remedies at employment tribunal on collective redundancy, and fire and rehire

    • Collective redundancy
    • Fire and rehire
    • Agency workers

    Impact of Employment Rights Bill published as consultations launched

    by Rob Moss 21 Oct 2024
    by Rob Moss 21 Oct 2024

    Employment Rights Bill could cost business £7.4bn over 10 years as government publishes impact assessment and four consultations.

    • Fire and rehire
    • Sexual harassment
    • Zero hours

    Employment Rights Bill: 12 key takeaways

    by Liz Stevens 11 Oct 2024
    by Liz Stevens 11 Oct 2024

    Liz Stevens, professional support lawyer at law firm Birketts, highlights the key takeaways from the long-awaited Employment Rights Bill

    • Fire and rehire
    • Zero hours
    • Shared parental leave

    Employment Rights Bill: government outlines next steps for future reforms

    by Kavitha Sivasubramaniam 10 Oct 2024
    by Kavitha Sivasubramaniam 10 Oct 2024

    The government unveils its Next Steps to Make Work Pay alongside the publication of its Employment Rights Bill today.

    • Fire and rehire
    • Zero hours
    • Employment law

    Employment Rights Bill ‘will not make work pay’ as it stands: Unite

    by Adam McCulloch 10 Oct 2024
    by Adam McCulloch 10 Oct 2024

    Unite, one of the UK's largest trade unions, has said the government's Employment Rights Bill ‘stops short of making work pay.’

    • Fire and rehire
    • Zero hours
    • Employment law

    ‘This Bill means business’: lawyers react to employment rights proposals

    by Adam McCulloch 10 Oct 2024
    by Adam McCulloch 10 Oct 2024

    Employment lawyers give their initial reactions to the Employment Rights Bill after its full publication.

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