Government reforms (5): Fire and Rehire - Code of Practice

We updated you previously that the Government would publish a new Statutory Code of Practice (‘the Code’) on the practice of ‘fire and rehire’ to ensure that employees are treated fairly and consulted with.

The Code is now available in draft and we outline it here:

What do we already know?

We updated you in previous Newsletters (available here) on the practice of ‘fire and rehire’ (when an employer dismisses an employee and subsequently re-engages them on new terms and conditions of employment) .

We also told you here that (following P&O Ferries dismissal last year of around 800 employees without consultation) the Government announced that it would publish a new Statutory Code of Practice (‘the Code’) on the practice of ‘fire and rehire’ to ensure that employees are treated fairly and consulted with.

What’s new?

The Government has published the Code in draft (available here) and there will be a consultation on this until 18 April 2023.

The Code is designed to set out good industrial practice for when employers negotiate/impose changes to terms and conditions and sets out a detailed step-by-step process for employers to follow. The intention is that employers should explore alternatives to dismissal and consult meaningfully in respect of proposed changes.

Where multiple changes to terms and conditions are proposed, the Code recommends that these are implemented (where possible) over a period of time and that the need for that change be kept under review. Dismissal and re-engagement is viewed as a last resort after a thorough and open consultation.

The Code also includes recommendations for sharing information (which, currently, only applies when collective consultation obligations are triggered).

Failure to comply with the Code will be taken into account by tribunals in any unfair dismissal claim (if the employer dismisses those who do not agree to contractual changes) and an unreasonable failure to comply with the Code can result in an uplift to any award of up to 25%. Tribunals will also have the power to decrease any award by up to 25% for any unreasonable failure by an employee to follow the Code.

Government reforms (5): Fire and Rehire – Code of Practice

We updated you previously that the Government would publish a new Statutory Code of Practice (‘the Code’) on the practice of ‘fire and rehire’ to ensure that employees are treated fairly and consulted with.

The Code is now available in draft and we outline it here:

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