-
- Type:
- How to
Measures under the Employment Rights Act 2025, due to come into force in January 2027, significantly restrict employers’ ability to change contractual terms by dismissing and re-engaging employees. In advance of the changes, employers may decide to review their use of variation clauses, to give them flexibility to make contractual changes in the future.
-
- Type:
- FAQs
The use of fire and rehire to change contractual terms will be significantly restricted under measures due to come into force in January 2027.
-
- Type:
- FAQs
A contractual change that is authorised by a valid variation clause that already forms part of the contract of employment will not be affected by the new provisions on fire and rehire ...
-
- Type:
- FAQs
Assuming there is no variation clause allowing the employer to make the change, if an employer proposes a "restricted variation" (for example a reduction in pay or a change in the number of working hours), the employees are entitled to refuse to agree to the change ...
-
- Type:
- Employment law guide
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:
- Employment law guide
There are no recent updates to highlight.
-
- Type:
- Legal timetable
Updated to reflect the Government's timeline update for the Employment Rights Act 2025, published 3 February 2026.
-
- Date:
- 10 July 2025
- Type:
- News
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
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
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.