fire & Re-hire - code of practice

What is Fire and Re-hire?

​Fire and re-hire, also known as dismissal and re-engagement, is a practice where employers terminate employees' contracts and offer them new contracts, often with different terms and conditions. This approach is typically used during restructuring or cost-cutting measures. However, it has generated  significant scrutiny due to its potential impact on employee job security and rights.

Practical Steps for Small Employers

Navigating the new fire and re-hire guidance can be challenging, especially for small employers with limited resources. Here are some practical steps to help you comply with the new regulations:

1. Review Current Contracts: Assess your existing employment contracts and identify any areas where changes may be needed. This will help you understand the potential impact on your employees and prepare for consultations.
2. Engage in Meaningful Consultation: Initiate open and honest discussions with your employees about the need for changes. Provide clear explanations and listen to their concerns. Consider involving employee representatives or trade unions if applicable.
3. Explore Alternatives: Before deciding on fire and re-hire, explore alternative options such as voluntary agreements, flexible working arrangements or temporary adjustments. Demonstrating that you have considered all options can strengthen your position.
4. Document the Process: Keep detailed records of all consultations, communications, and decisions related to fire and re-hire. This documentation can be crucial in defending against any potential claims of unfair dismissal.
5. Seek Professional Advice: Given the complexities of employment law, it’s advisable to seek legal or HR consultancy services. At Keane HR Consulting Ltd, we offer tailored guidance and support to help small employers navigate these challenging situations.

​The new fire and re-hire code of practice highlights the importance of fair and transparent practices in managing employment contracts. While these changes may pose challenges, they also present an opportunity for small employers to strengthen their HR processes and build trust with their employees.