Code of practice – fire and rehire

The new statutory code of practice on ‘Dismissal and re-engagement’ came into force on 18 July 2024.

The code provides practical guidance to employers and employees – and their representatives – where an employer:

• Is considering making changes to one or more of its employees’ contracts of employment.
• Envisages that, if the employee or their representative does not agree to some or all of the changes, it might opt for dismissal and re-engagement in respect of that employee.

Legal status

A failure to follow the code does not in itself make an employer liable to proceedings. However, if an employer is found to have unreasonably failed to follow the code, the employment tribunal (ET) may increase any award it makes by up to 25%. The ET may also reduce any award by up to 25% where the employee has failed to comply with the code.

Information-sharing and consultation

Where changes are proposed to employees’ contracts, schools should ensure that all affected employees are informed and consulted, as well as recognised trade unions. There are no prescribed timescales. However, information should be provided as early as possible and consultation should continue for as long as reasonably possible in good faith, with a view to reaching an agreed outcome. All alternative options should be considered. Schools should also re-examine their proposals where agreement has not been reached, considering any feedback from employees or their representatives.

Last resort

The code seeks to ‘ensure that the employer does not raise the prospect of dismissal unreasonably early, or put pressure on employees by threatening dismissal’. Employers are also advised to contact Acas for advice before raising the prospect of dismissal and re-engagement. Dismissal and re-engagement should be the last resort.

Further details

A link to the code can be found here.

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