Code of Practice on fire and re-hire

The statutory Code of Practice on Dismissal and Re-engagement (“fire and rehire”) has now come into force.

Its aim is to give guidance to employers, employees and trade unions to minimise and resolve conflict around dismissal and re-engagement. This follows consultation on a draft Code by the previous government.

It must be taken into account by tribunals, meaning that any failure to follow it could result in awards of compensation being increased or decreased by up to 25% when certain specified claims are brought.

However, the Code now won’t apply to compensation for breach of collective consultation resulting in a protective award (contrary to what was indicated in Labour Research, July 2024, page 19).

This was due to be added to the list of claims, but it didn’t get House of Lords’ approval before the general election. However, the new government has committed to ending “fire and rehire” and considers the Code inadequate.