New Code Of Practice Published On Fire And Rehire

The government has published new statutory guidance which warns that 'fire and rehire' should only be used to change employees' terms and conditions as "a last resort" and urges employers to first engage in thorough and open information and consultation processes.

'Fire and rehire' is a shorthand for the practice of changing employment terms and conditions by way of dismissal and re-engagement, typically in situations where it is impossible to obtain employee or trade union consent to the changes. It has attracted heightened controversy in recent years, as several prominent employers used the practice during the Covid-19 pandemic. Following the scandal over the firing of 800 workers by P&O Ferries in March 2022 (which strictly did not involve a 'fire and rehire' exercise), the government announced plans to introduce a new statutory Code of Practice to encourage employers to act fairly and reasonably in negotiations over changes to terms and conditions.