Fire & Rehire Challenge Letter Template & Generator

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, plus a free tool to generate yours.

What this letter needs to cover

• State that the employment is valued and the new terms are not accepted
• Reference the Employment Rights Act 2025 restrictions on fire and rehire
• Request formal consultation
• State intention to seek legal advice and consider tribunal claim if employer proceeds

Why fire and rehire has become more restricted

"Fire and rehire" — dismissing employees and immediately re-engaging them on worse terms — is now subject to stricter rules following the Employment Rights Act 2025 reforms and updated statutory Code of Practice, which significantly increase the risk to employers who use this approach without genuine, exhausted alternatives and proper consultation.

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.

See our full letter template & generator library for related letters, or use our free checkers for guidance specific to your situation.