The government has blocked a Private Member's Bill which aimed to curb the practice of "fire and rehire" that has been the subject of numerous high-profile disputes in recent times, particularly as a response to the impact of Covid-19 upon businesses. 

Employers who wish to make detrimental changes to employees' terms and conditions may, in the absence of employees agreeing to those changes, dismiss them (on the lawful grounds of 'Some Other Substantial Reason' (SOSR) as provided for by the Employment Rights Act 1996) and offer to re-engage them on the new but detrimental terms. 

 

On 8 June 2021, responding to a report published by Acas, the government stated that it would not yet legislate to prevent this practice but had requested that Acas prepare more detailed guidance on how and when dismissal and re-engagement should be used - given that the current law on the practice (and the use of SOSR dismissals generally) remains surprisingly vague.

 

Labour MP Barry Gardiner had sponsored the Employment and Trade Union Rights (Dismissal and Re-engagement) Bill which intended to legally discourage the use of fire and rehire practices and grant additional protection to those affected by it. The government ordered Conservative MPs to oppose the Bill at its second reading on 22 October 2021. While it regards the practice as "unacceptable as a negotiating tactic", the government says that it intends to await the Acas guidance.