Fire and Re-Hire Reform Is Stalled as a Private Member's Bill Is Blocked
Dismissal and re-engagement, or so-called 'fire and re-hire', has been increasingly hitting headlines over the course of the COVID-19 pandemic.
The practice allows employers to dismiss then re-employ workers on changed terms and conditions, or the prospect of doing so is used as a negotiation tool.
In October 2020, officials at the Department for Business, Energy and Industrial Strategy (BEIS) asked ACAS to carry out a review with relevant stakeholders and draft a report for BEIS. We reported on this review when it was published in June 2021.
On 16 June 2021, a Private Member's Bill on fire and re-hire (Employment and Trade Union Rights - Dismissal and Re-Engagement Bill) passed its first reading. Its second reading was arranged for 22 October 2021. The Bill, sponsored by Labour MP Mr Barry Gardiner, seeks to reform employment law to discourage the use of fire and re-hire practices by employers, and grant additional protection to workers affected by it. The Bill is said to be supported by over twenty trade unions.
The Bill Would:
- introduce a new duty for employers to consult employees in certain situations when they might be looking to dismiss or change the work terms of 15 or more employees - failure to consult would render any changes to an employment contract invalid
- provide additional employee protections, by:
- prohibiting employment contracts from including a unilateral right for employers to vary terms in ways less favourable to employees, without employee consent
- making it easier for employees to bring claims for 'unfair dismissal' in cases of fire and re-hire
- provide additional legal protections by making it easier and quicker for industrial action to be taken in cases of fire and re-hire
Labour MP Barry Gardiner sponsored the Employment and Trade Union Rights - Dismissal and Re-Engagement Bill which would discourage the use of fire and re-hire practices and grant additional protection to those affected by it. However, the Government has reportedly blocked the Bill and instead intends to await further ACAS guidance on this matter.