‘Fire and rehire’ is the term often used for dismissing an employee and offering them re-engagement on different, generally less favourable, terms. This practice, commonly known as fire and rehire, has become increasingly controversial due to concerns about its fairness and the imbalance of power between employers and employees. The former government issued a statutory Code of Practice aimed at deterring employers from using the tactic without exploring alternatives (for more information, see: Updated draft code on “fire and rehire” published).
Ultimately however, the practice was not banned and remained the ultimate trump card employers sometimes seek to fall back on as a last resort when negotiating alterations to terms and conditions.
As part of its manifesto, the Labour Party promised to end fire and rehire, so it is of no surprise that it features prominently as a part of the Employment Rights Bill (ERB). While the provisions have been watered down since the Government’s initial proposal, the circumstances in which fire and rehire will be able to be used will be severely limited.
An employee will be automatically unfairly dismissed where the employee is dismissed and the reason, or principal reason, is either:
European Commission President Ursula von der Leyen got sued by an MEP. EPA/OLIVIER HOSLET 17 September 2025 Romanian MEP Gheorghe Piperea filed an action against European Commission President Urs...