Fire and rehire to become unlawful

The UK government has announced plans to tackle dismissing someone then rehiring them on worse terms and conditions, often referred to as 'fire and rehire.' This practice is set to become an automatically unfair dismissal, in most cases. 

When will this change come into effect? 

The change is expected in October 2026. It will have implications not just for how organisations manage recruitment but also the approach taken where employees refuse to vary their contract in some way which comes under the legislation.

How will this affect me as an employer?

With the proposed changes in the legislation, employers will need to be mindful that ending an employee’s employment (dismissal) will be deemed automatically unfair if it was due to a refusal by the employee, whereby the employer had sought to impose a variation on certain aspects of their existing contract. 

Variations or changes which are substantial employment terms such as pay, working hours, holiday or pension entitlements are examples of certain aspects which fall within this category. 

What should I do to prepare?

One of the key takeaways for employers is the need to consider the approach to any potential or proposed changes to the core terms and conditions of employment for employees. 

Here are a few steps employers should begin adopting now:

• Plan ahead: consider the existing terms and conditions of employment that are currently in place for your employees. Some flexibility will be restricted after the implementation of the new legislation; it may be sensible in some scenarios to consider your options now, before certain aspects become automatically unfair. 

• Check the scope: not all changes or variations to an employee’s terms and conditions of employment will be relevant to this change in legislation, and so would not be automatically considered unfair. Some changes, such as a change in location for an example, wouldn’t necessarily need to be considered here but would need to be handled in line with the current legal position both now and moving forwards. 

• Seek advice: changes in legislation often cause misunderstanding or misinterpretation of what is expected from you in certain situations as the employer. The best way forward would be to seek the advice of your HR Advisor prior to any consideration of changes to employees’ core terms and conditions of employment.

How will Stallard Kane support me? 

By the time this legislation takes effect, employers will be expected to already be operating to these higher standards. This does not just include the 'fire and rehire' aspect but also many different changes to employment law brought about by the Employment Rights Bill.

In preparation, our team of HR Advisors is actively reviewing all relevant policies and procedures. Please be prepared to receive a comprehensive suite of updated documentation throughout 2026, which will be reviewed and discussed in detail during your HR Audit.

Preparing now gives your business time to embed stronger practices, train managers, and ensure that by 2026 you’re not just compliant but confident in how you hire, manage and retain your workforce.

In the meantime, if you have any questions or need further assistance, please don’t hesitate to contact your designated HR Advisor; we're here to help. For guidance, speak to your HR Advisor: hr@skaltd.co.uk | 01427 402 403

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