Fire and Rehire Draft Guidance Published

The Government has published guidance, setting out commercial best practice when employers wish to change or amend the terms and conditions of employees.  Julie Sabba, an Associate in the Employment team, summarises the new draft Code of Practice for employers.

The proposed Code provides guidance in relation to situations where an employer takes steps to impose changes to terms and conditions by dismissing affected employees, then offering immediate re-engagement on the new terms.  This is usually done after a period of consultation with either the employees or the relevant union, something which is strongly recommended in the draft Code.

Although not binding, failure to adhere to the advice contained within the Code will be taken into account in any unfair dismissal claim, with a potential sanction of a 25% uplift imposed on employers who unreasonably fail to comply.

Some of the key points in the Code are:

• An onus on the employer to reconsider its business strategy and avoid the disputed terms, in the event that agreement cannot be reached;
• Sharing relevant information with employees or representatives;
• Reintroduction of original terms if circumstances change;
• Implementing a period of review; and
• Phasing in terms one at a time, where a number of changes are sought.

In summary, the draft Code acts to strengthen the position of employees in such circumstances and prevent unscrupulous employers from quickly forcing through unfavourable terms.

If you would like advice from the Employment team at MLP Law in respect of any of the issues raised here or more generally, please do not hesitate to get in touch on 0161 926 9969 or employment@mlplaw.co.uk, or follow us on Twitter @HRHeroUK.