Statutory Code of Practice on fire and re-hire comes into force
The statutory Code of Practice has come into force on 18 July 2024 as planned, despite the Labour Government's continued plans to introduce legal reform in this area.
Statutory Code in force
The statutory Code of Practice on dismissal and re-engagement has come into force. Whilst it does not change the law of dismissal and re-engagement, it does place emphasis on meaningful consultation and highlights the importance of exploring alternatives to dismissal. It is intended to provide practical guidance and a step-by-step process for employers to follow. The Code will be admissible in evidence in relevant Tribunal or court proceedings. Tribunals will have the power to increase or decrease compensation by up to 25% in the event of either party's unreasonable failure to follow the Code.
Whilst the Code is now in force, it will not apply to procedures where the possibility of fire and re-hire was raised by the employer prior to 18 July.
Future legal reform?
There had been some uncertainty on how the Code stands up against the new government's plans to replace the Code with a strengthened version. This week the Secretary of State for Business and Trade confirmed that the government has decided to let the Code of Practice come into force, although plans still stand to replace it with a strengthened version once the relevant legislation is brought forward.
For more information or advice, please contact Michael Halsey in our Employment team on 020 7665 0842, or complete the form below.