Fire and Re-Hire: New Code of Practice
In recent years a practice has grown in some sectors of firing and then immediately re-hiring employees. Whilst not illegal, it has understandably caused concern amongst employees and their representatives. As a result, in July, a new Code of? Practice was introduced that goes some way towards ensuring that fire and re-hire is only used as a last resort and in a reasonable manner.
New Statutory Code of Practice
·???????? The Code?sets out practical guidance for employers and employees and imposes procedures on employers wishing to use fire and rehire tactics.
·???????? The purpose of the Code is to “ensure that an employer takes all reasonable steps to explore alternatives to dismissal and engages in meaningful consultation with a view to reaching an agreed outcome with employees and their representatives”.?
·???????? Pursuant to the Code, organisations should share “as much information regarding the proposals as reasonably possible” to enable employees and their representatives to understand the reasons for the proposed changes and so that employees can ask questions and or make counter-proposals.?
·???????? Consultation under the Code will also be required regardless of the number of employees who might be affected.
·???????? The Code also makes it clear that firing and rehiring should be a last resort.
Sanctions for non-compliance with the Code
Although the Code does not create a claim in its own right, non-compliance can be taken into account by employment tribunals?in relevant cases, including unfair dismissal. Tribunals will also be able to uplift compensation by up to 25% if an employer unreasonably fails to comply with the Code.
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More developments are expected soon.
If you would like further advice on any of the issues raised herein, then?please get in touch.
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