Lawyer Monthly Magazine - September 2021 Edition

40 WWW.LAWYER-MONTHLY.COM | SEP 2021 WHAT YOU NEED TO KNOW ABOUT “FIRE AND REHIRE” EMPLOYMENT PRACTICES “Fire and Rehire” is increasingly being used by employers looking to introduce alterations to Contracts of Employment where employees disagree with the changes being proposed. In essence, it entails employers dismissing employees (with contractual notice), and then offering them new employment on revised terms. Although controversial, this practice is not illegal when handled properly. It is also nothing new despite growing media attention borne out of the pandemic. There are, however, indications that this practice is becoming more widespread as a result of businesses struggling through lockdown. But what are the facts, and where do businesses, or for that matter employees, legally stand when it comes to “Fire and Rehire”? What is the legality of “Firing and Rehiring”? Whilst banned in Ireland, Spain and France, “Fire and Rehire” is common practice in the UK. In fact, research by the TUC shows that since March 2020, almost one in 10 UK workers have been forced to reapply for their role on poorer terms and conditions, or risk being let go permanently. It is employees with less than two years’ service that are at the highest risk due to their limited employment rights, although this is not always the case. Recently, however, there is a growing perception that COVID-19 has been used as a cover to reduce workers’ rights. Unite remains extremely critical of the practice, specifically citing the disparity this creates for employees at a time of enormous adversity in the aftermath of the pandemic, during which substantial Government support was offered to employers, including provisions such as the Coronavirus Job Retention Scheme. Statistics gathered by the GMB union back this sentiment, showing that three-quarters of people think “Fire and Rehire” should be outlawed. In January 2020, the Government launched an investigation into the practice with ACAS. However, on 8 June 2021, the Government confirmed that whilst it condemned the use of “Fire and Rehire” as a negotiation tool, it would not be introducing legislation to ban the practice. As a result, it remains an option for employers dealing with a problematic issue. When is “Fire and Rehire” used? “Fire and Rehire” is applied in a variety of situations by employers; there is no uniform perspective on when it is or is not used What You Need to Know About “Fire and Rehire” Employment Practices Tina Chander Partner, Wright Hassall Olympus Avenue, Leamington Spa, CV34 6BF T: 01926 884687 E: tina.chander@wrighthassall.co.uk www.wrighthassall.co.uk Tina Chander Tina Chander is the Head of Employment Law at Midlands law firm Wright Hassall and deals with contentious and non- contentious employment law issues, acting for small businesses to large national and international corporations. She advises on a variety of employment law matters, including all aspects of employment tribunal proceedings and appeals. Wright Hassall Wright Hassall is a top-ranked regional law firm, providing legal services including corporate law, commercial law, litigation and dispute resolution, employment law and property law. The firm also advises on contentious probate, business immigration, information governance, professional negligence and private client matters. The practice of firing employees, only to rehire them under an altered contract, has been widely condemned – yet remains legal. Here, we speak with Tina Chander, who describes the practice and why some employers feel driven to make use of it despite its dismal reputation.