Many UK employers are already taking steps to distance themselves from controversial ‘fire and rehire’ practices in a move that could help them stay ahead of Government reforms due to come into force next year. However, new research reveals that HR professionals still have concerns about how the changes will apply in practice.
Just 15% of businesses have ever used ‘fire and rehire’ tactics to implement contractual changes and only 4% had used the controversial practice in the last year. Experts warn though that the move away presents a potential skills gap that should be addressed.
Senior Employment Law Adviser, Lyndsay Gourlay at WorkNest said: “Our findings reflect the positive change we have already been seeing in how employers approach contractual change. There’s now a clear shift towards more consultative methods. Fire and rehire was often viewed as a last resort, not just for legal reasons, but because of the reputational and relational risks that it poses.
“This ongoing shift however presents a need for the industry to be strategically upskilled in negotiation, engagement, and communication as employers will need to secure contractual changes through collaboration.”
The survey highlights a possible need for relevant training however with a quarter (25%) of businesses saying they feel unprepared to implement contractual changes without using fire and rehire.
Senior Employment Law Adviser, Lyndsay Gourlay, added: “Employers are already culturally aligned with the expected direction of the reforms, but many could still lack the technical skills needed to manage change effectively and without legal repercussions. Now is the time to invest in equipping HR professionals with the skills they will need to lead fair and effective change.”
The Government’s recent Employment Rights Bill roadmap confirms that amendments to ‘fire and rehire’ will be introduced by October 2026. However, the poll findings suggest these changes are likely to formalise a shift already underway, rather than present a new challenge with four in ten (43%) respondents saying they would never consider using fire and rehire, and a further 42% having considered it but ultimately chosen not to.
When asked about the impact a ban on fire and rehire would have on their ability to make changes in their organisation, nearly one third (31%) said it will have no impact and over half (57%) said it expects a minor impact. Only 3% of respondents anticipate a major impact as a result of any reforms.
*The findings come following a webinar on The End of Fire and Rehire? Getting ready for reform from WorkNest.
