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.
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 best practice
Good practice for employers to provide information in writing
Failure to follow the code can be taken into account by tribunals in relevant cases, and tribunals will be able to uplift any compensation awarded by up to 25 per cent for unreasonable failure to follow the code.
If the code is approved by Parliament, it should come into effect later in 2024.
To read more visit the Willans website. To contact Hayley Ainsworth email: hayley.ainsworth@willans.co.uk
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