‘Fire and re-hire’ has been portrayed in the press as the easy option for employers looking to make changes to employees’ terms and conditions, but there are still significant legal risks and considerations to bear in mind. Employers must remember to give employees their correct period of notice (or payment in lieu of notice where permitted), and where there will be more than 20 dismissals, they may need to carry out collective redundancy consultations. The risk of unfair dismissal and discrimination claims should also not be forgotten.
Acas Chief Executive, Susan Clews, said:
“Our findings provide valuable insight into the use of fire and rehire practices. We gathered a range of views from professional bodies with workplace expertise, including trade unions and employer organisations.
“Some of the participants told us about the business challenges of COVID-19 and how the use of fire and rehire can help reduce redundancies. Others believe that the practice is unacceptable, and that the pandemic has been used as a ‘smokescreen’ to diminish workers’ terms and conditions.
“There was also evidence that fire and rehire practices have been used for many years and predate the pandemic. We will take up the government’s request to produce further guidance that encourages good workplace practices when negotiating changes to staff contracts.”
Employers should give careful thought to any dismissal and re-engagement process, and always seek professional advice.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
