Government Publishes New ‘Fire And Rehire’ Code Of Practice
The UK government has now published its new ‘fire and rehire’ Code of practice – the Statutory Code of Practice on Dismissal and Re-engagement. This guidance took force on the 18th July 2024, and aims to ensure that employers are only engaging in the practice of dismissing and re-engaging employees when completely necessary.
In a previous article in March, we discussed the government’s draft ‘fire and rehire’ Code of Practice, which responded to widespread criticism of employers acting in this way. This Code has now been published and is in force.
Has the draft ‘fire and rehire’ Code of Practice changed?
The draft ‘fire and rehire’ Code of Practice was subject to an initial period of consultation, during which feedback was given for the government to take into consideration. In light of this feedback, no substantial changes have been made, but the final version of the Code does contain a few updates to certain headings and phrases. These changes are related particularly to wording regarding new terms of employment following a re-engagement.
For example, the draft ‘fire and rehire’ Code of Practice included the following wording, which was originally removed:
“The employer should ensure that the only terms which are changed are those which have been subject to the information-sharing and consultation process, and should not use this as an opportunity to make any further changes”
However, on 30th July 2024, the Government updated the Code to include the omitted wording to paragraph 52 of the Code and make other small minor amendments.
The impact of a change in government
It must be noted that new guidance regarding ‘fire and rehire’ was drawn up under the previous Conservative government. In their policy document published in May 2024, the new Labour government outlined a commitment to the end ‘fire and rehire’ practice, except where there is authentically no alternative. The King’s Speech on 17 July 2024 also referred to ending the practice of ‘fire and rehire’ through the Employment Rights Bill. Labour have stated the current Code is ‘inadequate’.
With this in mind, we shall await the draft Employment Rights Bill to see if the government seeks to amend the Code further or withdraw it altogether. Once the proposals are clearer, we are here to help you navigate the changes. The employment law team at Kitson Boyce has years of experience acting on behalf of employees and employers and ensuring that you get the best representation possible.
If you require any assistance or legal advice on changing terms and conditions of employment or how the ‘fire and rehire’ Code of Practice will impact you, please do not hesitate to contact us today.
