Skip to main content
CLOSE

Charities

Close

Corporate and Commercial

Close

Employment and Immigration

Close

Environmental, Social, and Corporate Governance

Close

Fraud and Investigations

Close

Individuals

Close

Litigation

Close

Planning and Infrastructure

Close

Public Law

Close

Real Estate

Close

Restructuring and Insolvency

Close

Energy

Close

Entrepreneurs

Close

Private Wealth

Close

Real Estate

Close

Tech and Innovation

Close

Transport

Close

On 28 May 2024, Parliament approved the Code of Practice (Dismissal and Re-engagement) Order 2024. This means that, despite the general election, the statutory Code of Practice on Dismissal and Re-engagement will come into force on 18 July 2024 in England, Wales and Scotland. The final draft of this Code was published on 19 February 2024 alongside the Government’s response to last year’s consultation.

The Code will apply in situations where an employer is considering making changes to employees’ contracts of employment and envisages that if those changes are not agreed, employees may be dismissed and re-engaged on less favourable terms (often known as ‘fire and re-hire’). Failing to follow the Code does not in itself give rise to a claim, but Tribunals will take the Code into account where relevant and will have the power to increase an employee’s award by up to 25%.

The Code stresses the importance of treating fire and re-hire as a last resort. Employers should initiate early and meaningful consultations with employees or their representatives; provide information as early as reasonably possible; and contact Acas for advice before raising the prospect of fire and re-hire. Even where the proposed changes are unlikely to be agreed, employers should consult in good faith for as long as reasonably possible. The threat of dismissal should not be used as a negotiating tactic, or where it is not actually envisaged. When it is clear that some or all of the changes will not be agreed, but still need to be implemented, employers should re-examine their proposals. As much notice as possible should be given of any dismissals, and employees should be re-engaged as soon as reasonably practicable. The Code of Practice will apply irrespective of whether collective bargaining applies to the workforce and regardless of the number of employees affected.

The Code will not apply where the prospect of dismissal and re-engagement has been raised with employees or their representatives before 18 July 2024. It should also be noted that if Labour wins the general election, the practice of fire and re-hire may be banned altogether except in extreme situations such as insolvency. A Labour Government is therefore likely to implement new legislation to deter fire and re-hire (and also potentially ‘fire and replace’) and to strengthen or repeal the current Code.

Latest articles

Our Offices

London
One Bartholomew Close
London
EC1A 7BL

Cambridge
20 Station Road
Cambridge
CB1 2JD

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

 

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

Follow us

  • Lexcel
  • CYBER ESSENTIALS PLUS

 

BDB Pitmans has launched Broadfield and is now part of the new transformative international law firm.

Should you need to confirm our bank details, please call +44 20 7092 6996.

© BDB Pitmans 2024. One Bartholomew Close, London EC1A 7BL - T +44 (0)345 222 9222

Our Services

Charities chevron
Corporate and Commercial chevron
Employment and Immigration chevron
Environmental, Social, and Corporate Governance chevron
Fraud and Investigations chevron
Individuals chevron
Litigation chevron
Planning and Infrastructure chevron
Public Law chevron
Real Estate chevron
Restructuring and Insolvency chevron

Sectors and Groups

Private Wealth chevron
Transport chevron