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Tag: fire and rehire

When the Code of Practice on dismissal and re-engagement (otherwise known as ‘fire and rehire’) came into force in July 2024, (see here) it failed to include protective awards among the uplifts that could be applied for non-compliance. Protective awards are made by Tribunals where employers have failed to comply with collective consultation obligations in redundancy situations involving 20 or more employees.

This has now been put right. From 20 January 2025 Tribunals can impose a compensation uplift of up to 25% on protective awards for breaches of the Code. This means the worst-case financial scenario for non-compliance is no longer capped at 90 days’ gross pay per employee.  Employers must also factor in the potential 25% compensation uplift for failing to follow the Code.

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