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.