Statutory code of practice on "fire and rehire"

Implementation date: 18 July 2024

A new statutory code of practice sets out the procedure that employers should follow when proposing to make changes to contractual terms. The code makes it clear that employers must act fairly and reasonably when seeking to make contractual changes and that dismissal and re-engagement should only be used as a last resort.

An unreasonable failure to comply with the code may result in an uplift in any compensation awarded by an employment tribunal of up to 25%.

The code of practice was laid before Parliament on 28 May 2024 and will come into effect on 18 July 2024.