The statutory Code of Practice on Dismissal and Re-engagement came into force on 18th July 2024.
There is no stand-alone claim for breach of the Code, however, it must be taken into account by employment tribunals in relevant cases, including unfair dismissal. It gives tribunals the ability to uplift compensation in unfair dismissal cases by up to 25% if an employer unreasonably fails to follow it. The uplift does not apply to protective awards for failure to inform and consult in collective redundancy situations.
Key provisions
- A requirement to consult ‘for as long as reasonably possible’, but — unlike collective redundancy consultation — there is no minimum period. Employers are told to contact ACAS at an early stage before they raise ‘fire and rehire’ with the workforce.
- ‘Fire and rehire’ should only be used as a last resort.
- Once the employer becomes aware the proposed changes are not agreed, they should re-examine them. The employer should consider feedback from employees and/or their representatives.
- Employers need to explore alternatives to ‘fire and rehire’
- Employers should not threaten dismissal if it isn’t a realistic outcome
- Employers mustn’t use threats of dismissal to force employees into signing new terms and conditions
Note that the Code may not be in force in this form for very long. Labour have pledged to legislate to ‘end fire and re-hire’ and to replace and strengthen the Code.
If you enjoyed this blog then perhaps you’d like to sign up to our monthly newsletter. We’ll keep you updated on what’s new in employment law.
The team at Hunter Law is here for you. We can handle your HR issues, finesse your policies, and keep you up-to-date on evolving legislation. Please get in touch with our legal team, we’d love to help.
