Fire & Rehire Challenge Letter: Free Template and What to Include

If you need to challenge your employer's intention to dismiss and rehire on worse terms, a written letter is the recommended first step — it creates a clear record and shows you're pursuing the matter formally. Below is what a strong fire & rehire challenge letter should include.

What this letter needs to cover

• State that the employment is valued and the new terms are not accepted
• Ask your employer to follow the statutory Code of Practice on Dismissal and Re-engagement
• Request formal consultation
• State intention to seek legal advice and consider tribunal claim if employer proceeds

Where fire and rehire stands now

"Fire and rehire" — dismissing employees and re-engaging them on worse terms — is not banned. In England, Wales and Scotland employers should follow the statutory Code of Practice on Dismissal and Re-engagement, which expects them to explain the changes and the reasons, consult properly and consider alternatives first. New protections under the Employment Rights Act 2025 are planned but are not law yet; the government's timeline puts them in January 2027.

What to include before you send it

• Reference to the specific proposed changes to your terms and conditions
• A challenge to whether genuine consultation and alternatives were properly explored first
• Reference to the statutory Code of Practice on fire and rehire
• A request for the employer to reconsider or properly justify the approach

What tribunals now look for

Tribunals can increase compensation by up to 25% where an employer has unreasonably failed to follow the statutory Code of Practice on fire and rehire — this makes the process itself, not just the outcome, something employers now need to take seriously, and something you can specifically challenge if it wasn't followed.

Frequently Asked Questions

Does this mean employers can never change contract terms?
No — genuine business need can still justify changes, but the process for reaching them, including real consultation and consideration of alternatives, now carries much more legal weight.

What if I refuse to accept the new terms?
This can potentially lead to dismissal and re-engagement on the new terms, which is exactly the practice now more heavily scrutinised — if this happens without proper process, it strengthens a potential unfair dismissal claim.

[Your Name]
[Your Address]
[Your Postcode]
[Your Phone Number]
[Your Email Address]
[Name of HR Manager / Line Manager]
[Company Name]
[Company Address]
[Company Postcode]
[Date]

Dear [Name],

Subject: Objection to proposed contract changes

I am replying to your proposal to change my terms and conditions, and your statement that my contract will be ended and offered back on new terms if I do not agree.

I value my job and want to keep it, but I do not agree to these changes:
• [e.g. the cut to my pension contribution rate]
• [e.g. the changes to my shift pattern and weekend pay]

[Great Britain: Please follow the statutory Code of Practice on Dismissal and Re-engagement, which expects you to explain the changes and the reasons, consult properly and consider alternatives first.] Please arrange formal consultation on these proposals.

If the changes are imposed, I will keep working but only under protest. My continuing to work must not be taken as accepting the new terms.

If the company goes ahead, I will seek legal advice and consider a claim to an employment tribunal [Northern Ireland: industrial tribunal], for example for breach of contract, unlawful deductions from wages or unfair dismissal.

Yours sincerely,

[Your Signature]
[Your Printed Name]