30/05/2024

FIRE & RE-HIRE: GB CODE OF PRACTICE COMING INTO EFFECT ON 18 JULY 2024 (28 May 2024)

The Code of Practice (Dismissal and Re-engagement) Order 2024 was passed on 28 May 2024 and brings into effect the new Code of Practice on dismissal and re-engagement

The Code only applies where the prospect of dismissal and re-engagement has been raised by a business with either employee or representative on or after 18 July 2024.

Essentially, Code gives practical guidance on good industrial relations, where a business is considering making changes to one or more employees’ contracts of employment.

It is not a ban but envisages that if employee or their representative do not agree with changes, the business might opt for dismissal and re-engagement.

The Code does not impose any new legal obligations. Like other Codes, a failure to follow the Code is not actionable in itself but such failures can be taken into account in other legal claims. It certain claims a failure could lead to an increase or reduction to the  compensation awarded for those claims.

Again this Code (and Order) applies in Great Britain only.

Labour’s Plans:

Indeed this Code could have a short life. If elected, Labour has stated in Labour’s Plan to Make Work Pay: Delivering A New Deal for Working People  that it intends to replace ‘inadequate statutory code brought in by the Government’, with a strengthened Code. [NB: the detail on what this means remains unclear]

Northern Ireland:

At IoD Northern Ireland Briefing on 28 May 2024 with officials from Department for the Economy Northern Ireland they discussed potential Employment Law Changes. The Department confirmed that fire & re-hire is one of issues that they are currently considering. At this stage the Department is scoping out what should included in the Consultation Document that will lead to an Employment Bill. We can expect to see their Consultation Document issued around summer time.