Varying contracts

New and updated

• Type:

  Employment law guide

  Dismissal and re-engagement (fire and rehire)

  This guide explains dismissal and re-engagement (also known as "fire and rehire") as a means of changing contract terms. The guide covers the statutory code of practice, the risk of breach of contract, and the circumstances in which such dismissals may be unfair. The guide also highlights that collective consultation may be required.

• Type:

  How to

  How to change the terms of existing employment contracts

  Updated to reflect that the maximum protective award for failure to consult collectively doubles from 6 April 2026, under the Employment Rights Act 2025. The collective consultation duty can apply when an employer proposes to dismiss and re-engage employees to change their contract terms.

• Type:

  Employment law guide

  Variation of contracts

  There are no recent updates to highlight.

• Type:

  Legal timetable

  Reform of rules on dismissal and re-engagement

  Updated to reflect the Government's timeline update for the Employment Rights Act 2025, published 3 February 2026.

• Date:

  10 July 2025

  Type:

  News

  Ministers loosen fire and rehire proposals in Employment Rights Bill

  Fire and rehire proposals in the Employment Rights Bill are being amended by ministers to offer employers slightly more leeway.

• Date:

  18 October 2024

  Type:

  Survey analysis

  Employment Rights Bill research 2024

  The first draft of the Employment Rights Bill was published on 10 October - just ahead of 100 days into the new Labour Government. We take an early look at how HR is reacting to the changes included in the Bill.

• Type:

  Employment law cases

  Supreme Court stops Tesco's plans to "fire and rehire"

  In Tesco Stores Ltd v Union of Shop, Distributive and Allied Workers and others, the Supreme Court held that there was an implied term in the employment contracts that prevented Tesco from exercising its right to terminate them for the sole purpose of removing the entitlement to enhanced pay.

• Type:

  How to

  How to change the pay method for employees

  Updated to reflect the statutory code of practice on dismissal and re-engagement, which applies from 18 July 2024.

• Type:

  FAQs

  Can an employer change an employee's hours where there is no contractual clause authorising it to do so?

  Updated to reflect the statutory code of practice on dismissal and re-engagement, which applies from 18 July 2024.

• Type:

  FAQs

  How long must an employer consult with employees for when seeking agreement to change their contracts?

  Updated to reflect the statutory code of practice on dismissal and re-engagement, which applies from 18 July 2024.