Fire & rehire: Government consultation underway
The government has published a draft Code of Practice on fire and rehire, and a 12-week consultation period has commenced. Our employment law experts provide the latest updates.
The draft code sets out steps employers should take when considering making changes to employees’ contracts of employment, including:
- re-examining business plans
- considering any alternative ways to achieve its business objective
- engaging in meaningful consultation in good faith
- considering alternative proposals made by employees
- engaging in a genuine exploration of whether alternatives are workable or will meet their objectives
- not imposing contractual changes unless all alternatives have been fully explored.
The code will apply regardless of the number of employees affected but does not apply to redundancy situations.
Failure to comply can increase any compensation awarded by up to 25% in the event of an employer’s misconduct.
The consultation closes on 18 April 2023. At the time of writing, the government has not proposed a timeframe for bringing the Code of Practice into force.
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