Code of Practice on Dismissal and Re-engagement
Consultation launched 24 January 2023
Following on from the widespread condemnation of P&O Ferries which dismissed its entire workforce in late 2021, the government has just launched a consultation on a new Code of Practice on Dismissal and Re-engagement.
The aim is to prevent or at least curtail the practice of ‘fire and rehire’ where employees who do not accept new terms and conditions are dismissed and then offered their job back on the new terms.
The proposed code will crack down on unscrupulous employers, in particular making it clear that threats of dismissal should not be used.
It will give courts the power to apply a 25% uplift to employee compensation, in the same way as the ACAS Code of Practice is enforced. The consultation launched on 24 January and will close on 18 April 2023.