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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:
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.
