A revised Code of Practice on ‘Fire and rehire’ has been published. If the Code is approved by Parliament, then it will come into effect later this year.
What are the updates to the Code?
There have been no changes to the key provisions in the original Code, which was published in January 2023, however, there have been some slight amendments which include: –
• The requirement to contact Acas if an employer is unable to reach agreement with employees has now been strengthened. Employers should now contact Acas early on prior to raising fire and rehire in the workplace.
• It now states it is good practice for employers to provide information in writing.
• It is now best practice to phase in changes and not an obligation.
• The Code will not apply in redundancy situations; however, it will be applicable where both redundancy and fire and rehire are options.
• Consultation is required for as long as is reasonably possible, however, there is not a minimum time period like there is for collective redundancy.
• Employees must not be threatened with dismissal in order to persuade them to sign new terms and conditions.
• Alternatives will need to be explored by employers to fire and rehire and the focus must be on reaching agreement by having worthwhile conversations with employees and trade unions.
• Fire and hire must only be used as a last option.
What happens if an employer does not follow the code?
If employers do not follow the Code there is no stand-alone claim but in relevant cases it can be take into account. A tribunal will be able to uplift compensation up to 25% if an employer fails to follow the Code.
If you would like to speak to one of our experts, please contact us on 01483 362732 or info@guildford-hr.co.uk