Fire and rehire practice code finalised

The government has published the final draft code of practice for employers on dismissing and re-engaging staff.

The code, which warns that ‘firing and rehiring’ should be a last resort, urges organisations seeking to change employment contracts to consult staff or their representatives and take “all reasonable steps” to explore alternatives to dismissal. A draft code was originally published in January 2023.

Employers deciding to dismiss and re-engage staff must give appropriate statutory notice and consider giving employees more time to make arrangements that accommodate their changing circumstances. They should also consider offering help with relocation or career coaching.

The Department for Business and Trade, which oversaw the guidance, warns that employment tribunals will be able to increase an employee’s compensation by up to 25% if an employer unreasonably fails to comply with the code.

The government intends to bring the code into force in the summer of 2024, following approval by Parliament.