Changes to the Code of Fire and Rehire

The Code aims to ensure fair and reasonable employer conduct when changing employee’s terms and conditions, requiring consultation and the exploration of alternatives before considering dismissal. Therefore, Employment Tribunals must consider this Code when hearing relevant claims, while non-compliance with the Code does not automatically incur liability, the Tribunal can adjust compensation for certain claims up to 25%, including unfair dismissal, if either party unreasonably fails to follow the code. However, this adjustment does not apply to claims for protective awards for failure to inform and consult in collective redundancies.

Despite criticism from Labour that the Code is insufficient, the Secretary of State for Business and Trade has confirmed that the Government will introduce new legislation within 100 days to end ‘Fire and Rehire’ practices, and subsequently seeks to replace the current Code with a stronger version.

We do not expect this policy to be in force for long in light of the Kings Speech and Labour Proposals.

If you would like to discuss any of the above or have any questions in relation to your own employers policies and how to navigate compliance with these, our Employment team are here to help on 020 8290 0440 or email employment@thackraywilliams.com.