The Department for Business, Energy and Industrial Strategy (BEIS) has published new best practice guidance on fire and rehire. This is when an employer dismisses an employee and rehires them on new terms which are less favourable.
The Draft Code of Practice on Dismissal and Re-engagement came about because of the unlawful redundancies of over 800 employees by P& O Ferries in early 2022. The Draft Code aims to encourage employers and employees to act reasonably and fairly in the process. It provides practical guidance to employers on how this can be achieved.
Employers will not be under any legal obligation to abide by the Code, however, just like the Acas Code on Discipline and Grievance Procedures, it will be admissible in tribunal proceedings and any award issued can be increased by up to 25% where an employer has unreasonably failed to comply, and similarly, it can be decreased by up to 25% where it is the employee who has unreasonably failed to comply.