Fire and rehire: Government responds to consultation on code of practice

A public outcry over firms using ‘fire and rehire’ practices to change employee terms and conditions forced a consultation and now the Government has responded. Hayley Ainsworth, of Willans, explains.

Hayley Ainsworth, associate solicitor at Willans LLP.

The Government has responded to the consultation on the draft Statutory Code of Practice on Dismissal and Re-engagement, which includes minor amends to the draft.

The consultation, which came after public outcry around employers using ‘fire and rehire’ practices to force changes in employee terms and conditions, closed in spring 2023.

The Government’s response contains an amended draft code, along with an explanatory memorandum, to be presented to Parliament for approval. The key provisions remain the same as in the original draft code, summarised here, but there have been some minor amendments as follows:

Original draft code

Employers must contact Acas if unable to reach agreement with employees about fire and re-hire

Phasing-in changes are obligatory

No reference to employers providing information in writing

New draft Code

Employers must contact Acas at an early stage, before raising fire and re-hire with employees

Phasing-in changes are …