Fire and rehire: government responds to consultation on Code of Practice

The Government has responded to the consultation on the draft Statutory Code of Practice on Dismissal and Re-engagement, which includes minor amends to the draft.

The consultation, which came after public outcry around employers using ‘fire and rehire’ practices to force changes in employee terms and conditions, closed in spring 2023.

The Government’s response contains an amended draft code, along with an explanatory memorandum, to be presented to Parliament for approval. The key provisions remain the same as in the original draft code, summarised here, but there have been some minor amendments as follows:

Failure to follow the code can be taken into account by tribunals in relevant cases, and tribunals will be able to uplift any compensation awarded by up to 25% for unreasonable failure to follow the code.

If the code is approved by Parliament, it should come into effect later in 2024.

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