The Government’s new statutory code on ‘fire and rehire’ practices falls short of properly protecting workers.
What is Fire and Rehire?
Fire and rehire is a practice wherein an employer dismisses an employee and rehires them on new terms, which are usually less favourable.
The New Statutory Code
On 24th January, the government announced that they were cracking down on employers using fire and rehire practices.
This new statutory code is intended to make it clear to employers that they aren’t allowed to threaten their staff with dismissal to pressure them into accepting less favourable terms. The code would also apply when employers attempt to replace their workers with new staff on worse terms.
Once this code is implemented, Courts and Employment Tribunals will be able to take it into account when considering relevant cases, including those regarding wrongful dismissal. If an employer is found to flout this code, they will have the power to increase the relevant employee’s compensation by 25% in certain cases.
P&O Ferries Scandal
Last year, P&O Ferries sacked 786 seafarers without prior consultation, with a plan of replacing them with cheaper agency workers.
Chief executive, Peter Hebblethwaite, admitted the company had broken the law with their actions due to their failure to consult trade unions in good time before the sackings, instead choosing to make the workers redundant with immediate effect.
Criticism
This code falls short of the outright ban on fire and rehire practices that many unions have called for. The Trade Union Congress general secretary said “A general code of practice is not going to stop another P&O-style scandal from happening, and it won’t deter bad bosses from treating staff like disposable labour”
Labour’s deputy leader, Angela Rayner, commented, “This code isn’t worth the paper it’s written on. It’s shameful that nearly a year after the P&O Ferries scandal the Conservatives can only offer this weak half-measure, which they admit will allow fire-and-rehire tactics to continue”
Sharon Graham, the general secretary of Unite the Union described it as “an insult to workers and their families” and called on the government to ban fire and rehire practices for good.
This isn’t a New Issue…
The P&O Ferries scandal is certainly not the first of its kind. In April 2021, hundreds of British Gas engineers were sacked after refusing to sign up to new terms and conditions which would have seen them working longer hours and facing a pay cut.
Following this issue, a Survation poll was conducted on behalf of GMB, which found that 76% of those who answered believed that the practice of fire and rehire should be illegal. This included 71% of Conservative voters. Therefore, it is certainly not just criticisers of the Tory party who want workers to have protection from what is, quite frankly, an exploitative labour practice.