Fire and rehire is a strategy employers use when they wish to change the terms and conditions of their employees' existing employment contracts.
United Kingdom Employment and HR
Fire and rehire is a strategy employers use when they wish to change the terms and conditions of their employees' existing employment contracts. Reasons for this may vary, but it is typically because of an employer's need to cut costs. Employers dismiss affected employees and offer to hire them back under new employment contracts that often contain less favourable term.
Fire and rehire has long been practiced by businesses and has been considered controversial for just as long. It is more common than one might think with small businesses as well as large corporations using it as a method to cut costs (more famously, Tesco lost a Supreme Court battle in September of last year over their firing and rehiring in 2021).
Whilst there is little information on the exact number of businesses that use this strategy, a survey of workers by the Trades Union Congress undertaken in January 2021 found that 9% of workers had been told to reapply for the same jobs under worse terms since March 2020. This shows fire and rehire has become more prevalent during COVID due to the obvious financial strains all businesses faced.
Whilst fire and rehire has become more common, employees are challenging this. As Employment Tribunals...
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