The statutory Code of Practice on Dismissal and Re-engagement came into force on 18th July 2024. More commonly known as the Code of Practice on ‘fire and re-hire’, there is no stand-alone claim for breach of its provisions. However, the Code must be taken into account by employment tribunals in relevant cases, including unfair dismissal. The Code gives tribunals the ability to uplift compensation in unfair dismissal cases by up to 25% if an employer unreasonably fails to follow it. The uplift does not apply to protective awards for failure to inform and consult in collective redundancy situations.

Key provisions include:

  • ‘Fire and rehire’ should only be used as a last resort.
  •  A requirement to consult ‘for as long as reasonably possible’, but — unlike collective redundancy consultation — there is no minimum time period. Employers are told to contact Acas at an early stage, before they raise ‘fire and rehire’ with the workforce.
  • Employers need to explore alternatives to ‘fire and rehire’. 
  • Once the employer becomes aware the proposed changes are not agreed, they should re-examine them. The employer should consider feedback from employees and/or their representatives.
  •  Employers should not threaten dismissal if it is not actually envisaged.
  •  Employers must not use threats of dismissal to coerce employees into signing new terms and conditions.

It is worth noting that the Code may not be in force in this form for very long. Labour have pledged to legislate to ‘end fire and re-hire’ and to replace and strengthen the Code.

Speak to Jon Dunkley

Jon is a Partner at Wollens and can advise you. Contact Jon via email jon.dunkley@wollens.co.uk or call 01271 341021.

Jon Dunkley - Wollens Solicitors Devon

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.

Related News & Insights

4 minute read
Wollens Welcomes Five New Trainee Solicitors - Wollens Solicitors Devon

Wollens Welcomes Five New Trainee Solicitors

Read Article
4 minute read
No Right of Way? Five Solutions When a Property Has No Recorded Access Rights - Wollens Solicitors Devon

No Right of Way? Five Solutions When a Property Has No Recorded Access Rights

Read Article
7 minute read
From draft to detail: understanding the key terms in your share purchase agreement - Wollens Solicitors Devon

From draft to detail: understanding the key terms in your share purchase agreement

Read Article
8 minute read
Can my solicitor help me stay in my own home? - Wollens Solicitors Devon

Can my solicitor help me stay in my own home?

Read Article
9 minute read
Buying neighbouring land - Wollens Solicitors Devon

Buying neighbouring land

Read Article
3 minute read
When A&E Gets It Wrong: The Rise in Emergency Department Claims - Wollens Solicitors Devon

When A&E Gets It Wrong: The Rise in Emergency Department Claims

Read Article
6 minute read
Corporate Restructuring: A Foundation to Success - Wollens Solicitors Devon

Corporate Restructuring: A Foundation to Success

Read Article
4 minute read
Understanding Erb’s Palsy - Wollens Solicitors Devon

Understanding Erb’s Palsy

Read Article