‘Fire-and-Rehire’ Code Comes into Force

On 18 July 2024, the long-anticipated Code of Practice on Dismissal and Re-engagement was brought into force across England, Wales and Scotland, giving statutory backing to guidance that employers should use dismissal and re-engagement only as a last resort. The regulations set out clear “musts” and “shoulds” for employers contemplating such changes, including meaningful consultation obligations for affected employees.

From a practical perspective, HR teams should ensure their consultation processes are robustly documented and genuinely seek alternatives before resorting to dismissal and re-offer on new terms. Although the code does not create new statutory rights, tribunals may take it into account when judging the reasonableness of an employer’s conduct.