Statutory Code of Practice to be issued on "fire and rehire" practices

On 29 March 2022, in light of events involving P&O ferries, the government announced that a new Statutory Code of Practice will be published on the use of "fire an rehire" practices to bring about changes to employees' terms and conditions.

This will detail how businesses must hold fair, transparent and meaningful consultations on proposed changes to employment terms. The code will include practical steps that employers should follow. Tribunals and courts will be required to take the code into account when considering relevant cases, including unfair dismissal. They will have the power to apply an uplift of up to 25% of an employee's compensation where the code applies, and the employer unreasonably fails to follow it.

This announcement follows the government's advice on 22 February 2022 that it had no plans to legislate against fire and rehire, having already blocked a Private Member's Bill aimed at curbing the practice.

Source: BEIS: News story: New statutory code to prevent unscrupulous employers using fire and rehire tactics (29 March 2022)