The Department for Business, Energy and Industrial Strategy has published proposals to crack down on dismissal and re-engagement practices often known as ‘fire and rehire’.
The consultation began on 24 January and will run until 18 April. The Government has put forward a statutory code of practice for employers seeking to change contractual terms or make employees redundant. The proposals are the result of P&O Ferries’ decision last year to sack 786 seafarers without informing the Government nor following best practice.
The draft code makes it clear that employers must not use threats of dismissal to pressure employees into accepting different contractual terms. Courts and Employment Tribunals would also be able to apply a 25 per cent uplift to an employee’s compensation if the employer is found not to have followed the code. You can contribute to the consultation by clicking here.
Commenting on this Andrew Jones MP said: “I am against employers using ‘fire and rehire’ tactics and I am pleased to see proposals put forward that will put a code of practice on a statutory footing.
“We saw last year how using these tactics can damage the reputation of a business. These proposals go one step further to ensure employers treat employees fairly when negotiating while maintaining the necessary flexibility that running a business requires.”