The practice of dismissing and re-engaging employees – sometimes referred to as fire and rehire – as a means of changing their terms and conditions of employment can cause conflict between employers, employees and trade unions.
The new code which is now in place sets out employers’ responsibilities when seeking to change contractual terms and conditions of employment and seeks to ensure dismissal and re-engagement is only used as a last resort.
Employment tribunals have the power to apply an uplift of 25% of an employee’s compensation if an employer unreasonably fails to comply with the code where it applies.
PAYadvice.UK 24/7/2025