Legislation
The Worker Protection (Amendment of Equality Act 2010) Bill
Date
Effective now
Summary
The Statutory Code of Practice on Dismissal and Re-engagement, known as ‘fire and rehire,’ has been in force since 18 July 2024.
Dismissal and re-engagement is the practice of forcibly changing terms and conditions by dismissing the employee and re-engaging them on the new terms.
While the Employment Rights Bill aims to strengthen the rules by making it “automatically unfair” unless the employer can demonstrate no alternative, the current provisions remain in place.
The code sets out the principles it expects employers to follow and encourages a greater level of consultation. It also states that when issuing the new terms to an employee, the only terms that should be
changed are those which the employee has been consulted about. No other changes should be made.
From 20 January 2025, employers have been required to adhere to the Code, in addition to existing consultation requirements, for redundancies involving 20 or more dismissals.
Employment tribunals can apply an uplift of up to 25% to an employee’s compensation if an employer unreasonably fails to comply with the Code where it applies.
Consultation on the code commenced on 2 December 2024, and the outcome was published in March 2025. It resulted in a decision to increase the maximum protective award for collective redundancy from 90 to 180 days’ pay, but not to introduce interim relief as a remedy.
Employment Law guide
April – May 2025 edition Do you know when the latest complex legislation changes come into effect? And are you aware of the work required to ensure your business is fully compliant?…