Fire And Rehire – Is It Lawful?

In 2022, in the wake of publicity around P&O Ferries' handing of the dismissal of a large number of employees, the government announced that a new Statutory Code of Practice would be introduced on the use of so called "fire and rehire" as a means of bringing about unilateral changes to terms and conditions.

Having decided against the banning the practice of "fire and rehire" altogether, the idea was that the Code would set standards for businesses to hold fair, transparent and meaningful consultations on proposed changes to employment terms and conditions

Following extensive consultation a draft of the proposed final Code was published in January 2024 and is likely to be approved by Parliament shortly, and become effective this Summer. The Code has been watered down somewhat from the original version and has been criticised as lacking real teeth.