Fire & Rehire - New Rules!
The Government has now given guidance on the fire and rehire rules. A new code has now been drawn up by the Department for Business and Trade and is before Parliamentary approval.
Should this new code be accepted, this would in turn mean that Employment Tribunals have the power to uplift up to 25% of a person’s compensation through any unreasonable lack of compliance. The guidance states that employers should explore alternatives to dismissal and have meaningful discussions with their employees or Trade Unions to reach an agreed outcome.
Business Minister, Kevin Hollinrake has said that the code will “crack down on employers mistreating employees and sets out how they should behave when changing an employees’ contract”.
However, TUC General Secretary, Paul Nowak is calling out for far more robust legislation to protect people at work, and he has said “one in ten were threatened with fire and rehire during the Pandemic, tinkering around the edges is not going to cut it”.
The Unite Union believes that the code is not going to stop employers from opting for fire and rehire.
If you are a business looking to restructure your workforce or planning to make changes to staff’s terms and conditions, you must take into account the new Code of Practice and legal advice on any proposals before making changes. This new guidance is also likely to lead to an increased number of Tribunal claims and therefore there is also risk for a business to face reputational damage if the procedure is not handled correctly or fairly.
If you are an employee and you feel that you have been dismissed unfairly due to changes in your terms and conditions of employment, then please do not hesitate to contact us. We have helped many people who have been dismissed unfairly.
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