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Fire and Rehire: Progress made but challenges remain

Published: 22 Feb 2024

Photograph showing an employment contract on a desk.

As the UK’s national charity for working parents and carers, Working Families’ mission is to remove the barriers that people with caring responsibilities face in the workplace. And so, when it comes to working parents and carers exercising their rights, we continue to campaign for these to be to be upheld by a justice system that understands their needs.

With this in mind, we are pleased to see that the Government has responded to the consultation on the practice of ‘fire and rehire’ by introducing reforms. Updating the Code of Practice on dismissal and re-engagement (better known as ‘Fire and Rehire’) and granting Employment Tribunals the ability to uplift compensation by up to 25% if an employer unreasonably fails to follow the Code will provide greater security for those at risk.

We are also pleased to see changes to the code that encourages dialogue and mediation. Specifically the recommendation that employers are now advised to contact ACAS at an early stage, before raising fire and rehire with the workforce, and that the risk of threats of dismissal should no longer be used as a way to pressurise employees to accept changes. Additionally, the amendments that encourage a dialogue between Employers and Employees and Trade Unions are welcomed, as is the reference that ‘fire and rehire’ should only be used as a last resort. Employers will now have to explore alternatives to dismissal and re-engagement in order to reach agreed outcomes.

While we welcome these changes and the Government’s commitment to take action on this subject, we are mindful that what is being proposed is not a ban on the practice of ‘fire and rehire’. With changes to the code highlighting what good practice around fire and rehire looks like, it is vital that the Government continues to assess if this code is robust enough to deter the process from happening again in the future.

Finally, with the upholding of the code still something that will be decided by an Employment Tribunal, we would implore the Government to direct funding towards services which ensure those most at risk of having their employment rights infringed are aware of their rights and entitlements and how they can access them.