Petition Ban fire and rehire employment tactics

Government responded

This response was given on 11 May 2021

Government has been concerned by reports of employers using fire and rehire inappropriately. We asked Acas to conduct an evidence-gathering exercise and will set out our next steps in due course.

From the outset of this pandemic, the Government has acted decisively to save lives and livelihoods. Through the Coronavirus Job Retention scheme, we have helped protect 11.4 million jobs. As we build back better, the Government wants to work with employers to protect existing jobs and create new jobs. And we continue to support those on the lowest incomes - earlier this month, around 2 million of the UK’s lowest-paid workers benefited from increases to the National Living Wage and National Minimum Wage. This included a 2.2% increase in the National Living Wage to £8.91, the equivalent of more than £345 extra per year for someone working full-time.

The Government appreciates that announcements about redundancies and job losses will be distressing for employees. The prospect of redundancy and changes to employment contracts can be deeply unsettling, with many workers showing great loyalty and commitment to their employers. As such, Government expects employers to act responsibly and with due consideration to their employees. This means that all negotiations over contractual changes must be done fairly and in good faith.

However, the Government has been concerned about reports that some employers were using fire and rehire tactics during negotiations. As such, the Department for Business, Energy and Industrial Strategy asked the Advisory, Conciliation and Arbitration Service (Acas) to conduct an evidence-gathering exercise to learn more about the use of ‘fire and rehire’ by employers. As an impartial and independent body, Acas held conversations with a balanced set of stakeholders including business groups, employer bodies, trade unions and professional bodies. Acas shared this evidence with BEIS in February, and the Government is now considering its next steps.

UK employment law sets out the statutory rights and responsibilities for individuals and employers in the workplace. If employers or employees want to change the terms and conditions of a contract, they must seek to come to an agreement. We expect employers to comply with their legal obligations and abide by fair processes when consulting with employees.

On matters of redundancy, the Government continues to strongly encourage employers to do the right thing. Legislation makes clear that the redundancy process should be fair and reasonable, with appropriate equalities considerations. Both employers and employees should engage in good faith and consult reasonably.

Employers carrying out redundancy consultations for the termination of employment for 20 or more employees in a 90 day period must follow a collective consultation process with trade unions/employee representatives, including minimum time periods for consultation, considering counter-proposals and exploring alternative options. Employees are also protected against discrimination during redundancy processes. If no such agreement is possible, employers can dismiss and re-employ employees on new terms and conditions.

Those with the necessary qualifying service who believe that they have been unfairly selected for redundancy, or that the redundancy was unfair in some other way, may be able to complain to an employment tribunal. Both employee and employers can contact the Advisory, Conciliation and Arbitration Service, who provide free advice to workers and employers to enable them to understand their rights and responsibilities.

Department for Business, Energy and Industrial Strategy