Fire and Rehire, also known as chapter and re -sharing, is a practice in the business world for a long time.
It involves companies that reject an employee, then reset them immediately. With the “new” job, a new contract will generally contain less conditions for the employee in question.
Yulia Barnes, founder and administrative director of the Boutique Commercial Lawyer, Barnes Law Associates The most prominent recent example of newspaper headlines is Union Usdaw, who won a case against Tesco in the Supreme Courts. The case focused on about three of about 50 employees at the distribution center affected by the “Fire and Rehire” plans. The employees were asked to accept a cut amount for one time instead of the high salaries they obtained several years ago to move; Otherwise, they face their rejection and re -renewal without increasing the salary.
Usdaw argued that workers' contracts stated that the increase in wages were permanent, which prompted the judges to conclude that Tesco should have determined the date of the completion of the deal if that intended to rise wages until it was temporary, and they should not be able to shoot and rehabilitate it whenever it was “appropriate () the purposes of its work” (BBC).
A controversial strategy
Of course, the broader audience only understands fire and rehabilitation strategies when they appear before the courts or in the media, as in the case of the Tesco distribution center workers. However, given that employees are always renewed on a lower preferential basis, this practice has always been present.
It is more common than he believed: One poll of the trade union conferences found that 9 % of workers were asked to re -apply for the same jobs under worse periods between March 2020 and January 2021 (although it should be noted that this was in the midst of the roaming epidemic that strongly affected all actions in the United Kingdom).
While the number of people affected in the past two years may be much lower, this rise in fire and employment has caught the attention of the public – and successive governments that have provided measures to reduce the strategy.
What are the rules about shooting and filtration?
The Practice Blog was issued by the previous government in the summer of 2024; While it does not seek to eliminate the separation and re -participate, it determines the alternative options that employers must observe, noting that the strategy must be the last resort. Failure to follow the code does not automatically mean that the employer will face a procedure, but if the employee takes the order to a court and wins, his compensation can be raised by 25 % if they can show not compliance by the employer.
It is scheduled to be replaced by the draft employment rights law in the current government, which will witness the fire and frequency strategies that are not fair unless the employer was able to prove that he has no other option except for the contract variation proposal, and the reason behind this is to limit the impact of severe financial difficulties that affected the possibility that the business could continue in operations (UK).
As is the case, there is no specific definition of “financial difficulty” in the draft law – which is more than the middle of the road through the process of parliamentary approvals – but this may be more clear by the time when it officially comes, probably not before the fall of 2026.
What are alternatives?
Clear contacts with employees, a specific period of negotiation and willingness to open up to suggestions are necessary when changes need to make. With open and honest contacts, an increasing possibility comes from the possibility of concluding agreements in a way that satisfies both employers and employees.
Of course, there will always be parking when the fire and rehabilitation must be seen. But to comply with the guidelines, this last resort should be really. The strategy is likely to present the relations between administration and employees, and there is also a broader reputation issue that must be taken into account. Customers are more aware of the ethics of the companies they use, and information can spread more quickly in the digital age – so communication may also be required with the broader stakeholders to ensure that the brand's reputation is not discredited by shooting and restoring.
The best way to avoid entering into a position in which the strategy may be necessary is to ensure that the contracts include flexible items. For example, the ability to change the advantages of annual employment and leave, put companies in a much stronger position if they find themselves have financial problems that require contractual changes. This also means that there is a level of transparency and honesty from the beginning, employees may face changes if (only) necessary in order to maintain business.
If the warning tales are about the major companies that were burned because of their practices and their rehabilitation, we teach us one thing, then this is the value of strong and flexible contracts in their place, and maintaining communication in two directions between leaders and employees during any difficulties or disturbances that are experienced. By preparing for any possibility from the beginning with flexible items in contracts, companies can protect themselves from being forced on the road and rehabilitating a road in the future – and thus they can help their employees avoid the repercussions of this controversial strategy as well.
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