The Government has committed to publishing its draft statutory code of practice on “fire and re-hire” practices.
The practice of dismissing employees and offering immediate reengagement on new terms and conditions in order to unilaterally impose changes in terms and conditions of employment (“fire and re-hire”) has been heavily criticised in recent months.
A debate in the House of Lords has confirmed that the draft Statutory Code of Practice on dismissal and reengagement will be published for consultation this summer. This code is expected to set out good practice and help parties reach a negotiated settlement.
WHAT DOES THIS MEAN FOR EMPLOYERS?
“Fire and re-hire” will not be prohibited by the Code, nor is there currently any suggestion that it will be prohibited. The draft code has been expected for some time. It is anticipated that the Government will be meeting with stakeholders with relevant expertise before the code is published for consultation.