Statutory code of practice on "fire and rehire" introduced

Implementation date: To be confirmed

Employers seeking to change contracts of employment are required to follow a new statutory code of practice. The code will make clear that employers must act fairly and reasonably when seeking to make contractual changes and imposing terms by "firing and rehiring" employees should be a last resort.

An unreasonable failure to comply with the code may result in an uplift in any compensation awarded by an employment tribunal of up to 25%.

Acas has produced guidance to help employers explore alternative options for introducing changes to contracts before considering firing and rehiring employees.