Consultation Launched on 'Fire and Re-Hire' Statutory Code of Practice
The Government has published the long-awaited draft Code of Practice on dismissal and re-engagement. Consultation on the draft Code is open until 18 April 2023.
Why Has the Draft Code Been Published?
After P&O Ferries dismissed around 800 employees without consultation last year, the Government announced that it would publish a new Statutory Code of Practice on dismissal and re-engagement practices. The intention was not to make any substantive changes to the law, but instead to set out standards of best practice in respect of making changes to staff terms and conditions of employment.
What Does the Code Say?
The Code sets out a step-by-step process for employers to follow in order to explore alternatives to dismissal and to consult meaningfully in respect of proposed changes to staff terms and conditions. The Code treats dismissal and re-engagement as a last resort after a thorough and open consultation.
Do Employers Have to Follow the Code?
When it comes into force, it will be taken into account by courts and Tribunals. Tribunals will have the power to increase any award by up to 25% for the employer's unreasonable failure to follow the Code. It will also have the power to decrease any award by up to 25% for any unreasonable failure by an employee to follow the Code.
What Are the Next Steps?
The consultation is open until 11.45pm on 18 April 2023. The Code will be brought into force when Parliamentary time allows.