New Code of Practice on Fire and Rehire

The government has released new guidance on the ‘fire and rehire’ practice, stressing it should be a “last resort.” Employers are urged to prioritise thorough information-sharing and consultation processes. At Ascolta HR, we can help you implement these changes smoothly.

Understanding Fire and Rehire

‘Fire and rehire’ involves changing employment terms by dismissing and re-engaging employees under new conditions, often when obtaining consent is difficult. This practice gained attention during the COVID-19 pandemic.

Scope and Legal Status

The Code applies when employers consider changing terms and might dismiss and re-engage employees or hire new workers under new terms. Genuine redundancy situations are excluded. While the Code doesn't impose new legal obligations, it can influence legal proceedings, with tribunal awards adjustable by up to 25% based on compliance.

Key Provisions

- Last Resort: Use ‘fire and rehire’ only after exhausting other options. Avoid using it as a negotiation tactic.

- Information and Consultation: Engage early with employees, sharing as much information as possible, and consider their feedback.

- Contacting Acas: Seek advice from Acas before considering dismissal and re-engagement.

- Notice Periods and Support: Provide notice beyond contractual requirements and consider offering practical support like career coaching.

Implications for Employers

The Code emphasises the risks of ‘fire and rehire’ but doesn't significantly change the law. The new requirement to contact Acas is notable, and the Labour Party's intent to outlaw ‘fire and rehire’ if elected adds potential future changes.

How Ascolta HR Can Help

Navigating the new Code of Practice can be challenging. Ascolta HR specialises in helping businesses:

- Develop thorough consultation processes

- Ensure compliance with new guidelines

- Provide practical support to employees

- Mitigate legal and reputational risks

Let Ascolta HR guide you through these regulations and maintain a fair workplace. Contact us today to learn more.