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Status of the Statutory Code of Practice on Dismissal and Re-engagement

on Friday, 07 June 2024.

Parliament has now been prorogued ahead of the general election on 4 July.

One of the topics of interest in the parliamentary wash-up is the current status of the draft statutory Code of Practice on dismissal and re-engagement.

The draft Code has been in progress for over a year now, having first been announced in early 2023. Following consultation, an updated version was published in March this year, with plans confirmed for it to be in effect from 18 July 2024.

Since the general election was announced for 4 July 2024, it has been unclear what would happen to the statutory Code. However, last week an Order was made to bring the Code into effect on 18 July 2024. The Order confirms that the Code will not apply where the prospect of dismissal and re-engagement has been raised by the employer with the employee and/or their representatives before 18 July 2024. The potential 25% compensation uplift for claims involving the unreasonable failure to follow the Code will apply.

There is a separate draft Order to allow the protective award to be uplifted by up to 25% for non-compliance with collective consultation requirements. This Order does not appear to have been made as part of the parliamentary wash-up and so its current status is unclear.

Next steps

As of now, the statutory Code will come into effect on 18 July 2024. However, the Labour Party has previously stated it would abolish the practice of fire and re-hire if it were in power. We will continue to report on developments involving the statutory Code once more is known.

For more information or advice, please contact Ellie Boyd in our Employment team on 020 7665 0940, or complete the form below.

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