Fire And Rehire: How To Protect Your Rights As An Employee

Fire and rehire is an employment process that generally works to the benefit of employers, but often leaves employees at a disadvantage. Here’s how it works. An employee is dismissed from their existing employment contract, and then rehired on an altered employment contract with new work conditions. It might sound like this practice should be illegal. However, employers are within their rights to fire and rehire employees.

Let’s look at the effects that fire and rehire might have on you, your life, and your career.

How Does Fire And Rehire Affect You As An Employee?

The impact of fire and rehire on employees can be significant, affecting job security, wages, and trust in the workplace. Here are the five main ways that this practice may affect you.

1. You Don’t Feel Secure In Your Job

When you or your colleagues have gone through the process of fire and rehire or you suspect your employer will use this practice, you may begin to feel insecure about your job. The threat of dismissal and rehiring under less favourable working terms creates anxiety and uncertainty.

2. Your Wages May Be Reduced

Businesses often use fire and rehire to cut costs. If you are dismissed and rehired, you may see a reduction in your wages or changes to the pay structure. Either way, you’re worse off.

3. You May Lose Perks And Benefits

Fire and rehire can lead to the loss of non-mandatory benefits, such as health insurance, a company car, or gym membership. Other benefits may be reduced to their mandatory levels. This includes company pension, parental pay and leave, paid holiday, and sick pay.

4. You Don’t Trust Your Employer

Experiencing fire and rehire, or just living under the threat of this practice, damages trust between employers and employees. It can place a strain on their work relationship and lead to resentment.

5. Your Stress Levels Are Higher

The stress and emotional impact of fire and rehire can affect your well-being. You feel more stressed and you’re more prone to illness, both physical and mental.

How Can You Protect Yourself Against Fire And Rehire?

Facing the possibility of fire and rehire can be stressful, but there are steps you can take to protect yourself as an employee.

Know Your Rights

It’s important that you know your rights as an employee and the rules that your employer must follow in a fire and rehire scenario. These include:

• making sure that the dismissal is lawful
• being given the correct notice period
• the right to receive your dismissal in writing
• that employers follow the correct procedure

You can find plenty of information on your rights and your employer’s legal obligations by reading your employment contract and your employer’s company handbook. Other sources of information are ACAS, your trade union, the CIPD, and the government website for your country, such as gov.uk for England.

Collect Evidence

Keep a record of your current employment terms and conditions, including your employment contract, staff handbook, and pay slips. Keep a copy of all communications with your employer and a timeline of events. These documents can make all the difference if you need to challenge your dismissal or negotiate changes to your working conditions.

Seek Employment And Legal Advice

Consult an employment solicitor or trade union representative for legal advice. They can offer personalised guidance to help you understand your options.

You might also like to speak to the Citizens Advice Bureau and ACAS.

Don’t Be Afraid To Negotiate

The employer doesn’t have to have it all their own way. You are within your rights to negotiate the new terms of your employment. Talk to your employer about your concerns around the proposed changes and discuss alternatives.

If you’re part of a trade union, ask for their help. Trade union representatives can negotiate for you and provide support during discussions.

Are There Plans To Stop Fire And Rehire?

Fire and rehire practices appeared in several of the political party manifestos in the run up to the 2024 general election, including Labour. As the elected government, Labour have promised to end fire and rehire as part of their ‘Plan to Make Work Pay: Delivering a New Deal for Working People’. Their pledge to bring in new legislation within the first 100 days may include a ban on fire and rehire practices.

Despite the election of a new government, the Code of Practice (Dismissal and Re-engagement) Order 2024 will still come into effect on 18 July 2024. While this document still allows for fire and rehire, it places extra obligations on employers to make sure employees are fully informed and sufficiently consulted, and to involve ACAS in the process.

Wrapping it up

The questionable practice of fire and rehire continues to affect employees in the UK. While businesses are within their rights to carry out this process, the best way to protect yourself is to know your rights, keep a record of evidence, seek employment and legal advice, and be willing to negotiate new working terms. The promise of change from the new UK government, however, suggests a better future for employees.