Fire and rehire is back in the news after USDAW successfully obtained an injunction in the Hight Court to prevent a supermarket dismissing employees with ‘permanent’ or ‘guaranteed’ enhanced ring-fenced terms, and then rehiring them on the same terms, but with the ring-fenced element removed.
This is a controversial area of employment law and one that has received much focus during the pandemic. A number of large employers sought to make use of fire and rehire during the pandemic, seeking to cut the pay and benefits of employees.
Whilst there may sometimes be a genuine economic motive behind the need to alter terms and conditions, the reason fire and rehire is so controversial is that it essentially leaves employees with the option of accepting less favourable terms or losing their job. This would never be an easy choice but particularly during a pandemic, when there is so much job uncertainty, fire and rehire left employees particularly vulnerable. There is also scope for fire and rehire to be used by unscrupulous employers to reduce pay and benefits where there is not a genuine need to do so.
There are currently calls to ban fire and rehire, particularly from Trade Unions. However, at present the process is not unlawful.
In the above case, the specific facts led to the injunction being granted and there is nothing in the Judgment to prevent the use of fire and rehire tactics by employers. However, it is hoped that the Judgment will make employers think twice about using such an approach.
Employees who find themselves faced with a fire or rehire situation may be able to bring a claim for unfair or constructive unfair dismissal.
If you have a question about fire and rehire and unfair dismissal, or any other aspect of employment law then our employment team can help. Here at Beecham Peacock we have a trusted relationship with some of the largest trade unions in the country to protect your working rights. For further information call us on 0191 232 3048 or email enquire@beechampeacock.co.uk.