Key employment law updates | June 2021

Government confirms no current intention to ban "fire and rehire" practices

The Government has responded to a report by Acas on the use of so-called "fire and rehire" practices by employers who dismiss employees and offer re-engagement on revised terms.  Although legislative changes are not imminent, Acas has been asked to prepare more detailed guidance on when and how dismissal and re-engagement/fire and rehire should be used.

Various legislative and non-legislative reforms have been suggested recently in this area including:

  • enhancing the unfair dismissal regime;
  • requiring employment tribunals to closely assess business reasons for changes to terms and conditions;
  • requiring continuity of employment to be preserved in a fire and rehire situation;
  • increasing employer consultation obligations in relation to any proposed dismissals; and
  • improving guidance on relevant legal obligations and best practice.

Acas highlighted the issue of unintended adverse consequences to a reform in this area, which could lead to more job losses and has been asked to produce more detailed and comprehensive guidance for employers before "fire and rehire" is implemented.

Key Contacts