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📋 Toolbox Talk  ·  Employment Rights

Fire & Rehire:
Know Your Rights

What fire and rehire is, when it's lawful, the ERA 2025 restrictions, and what you can do if your employer threatens it.

✅ Verified July 2026📚 GOV.UK · ACAS · ERA 2025🇬🇧 England, Wales & Scotlandukworkrights.co.uk
The basics

What is fire and rehire?

  • Fire and rehire (also called "dismiss and re-engage") is when an employer dismisses employees and offers to rehire them on worse terms
  • Typically used to impose pay cuts, reduce benefits, change hours or remove contractual protections
  • It is a last resort tactic — not a routine HR tool
  • The practice has been widely condemned and is now heavily restricted under ERA 2025
  • Before ERA 2025, it was technically lawful if followed correctly — now the bar is much higher
  • P&O Ferries sacked 800 workers via Zoom in 2022 — the high-profile abuse that accelerated legal reform

⚠ ERA 2025 change

The Employment Rights Act 2025 makes fire and rehire automatically unfair dismissal in most circumstances. Implementation expected 2026 — verify at legislation.gov.uk.
The law

What ERA 2025 changed

1
Automatically unfair dismissal

Dismissing an employee to rehire on inferior terms is now automatically unfair in most cases — regardless of length of service.

2
Very limited exceptions

An employer may still dismiss and re-engage in genuinely exceptional financial circumstances — but the bar is high and must be demonstrable. "We want to cut costs" alone won't suffice.

3
Consultation obligations strengthened

Employers must genuinely consult with employees and/or unions before any contract changes. Rubber-stamping consultation is not enough.

4
Collective redundancy rules apply

If 20+ employees are affected, collective consultation of at least 30–45 days is required. Failure to consult is a criminal offence.

5
Day one unfair dismissal protection

From April 2026 all employees have day one unfair dismissal rights — removing the previous two-year qualifying period.

By the numbers

Fire & rehire in context

800
P&O workers dismissed without notice in 2022 — the scandal that drove legal reform
30
Minimum consultation days required when 20–99 employees are affected
45
Minimum consultation days when 100+ employees are affected
Day 1
Unfair dismissal protection from April 2026 — no qualifying period
90
Days an employer must notify the Insolvency Service before large-scale dismissals
Uncapped
Compensation where dismissal is found to be automatically unfair
What to do

If your employer threatens fire and rehire

1
Do not sign anything under pressure

Take time to read any new contract carefully. Signing under duress does not make it binding — but seek advice before refusing.

2
Check whether collective consultation has started

If 20+ employees are affected, your employer must begin formal collective consultation. If they haven't, that's already a breach.

3
Contact your trade union

If you're in a union, contact your rep immediately. Unions can challenge fire and rehire through collective bargaining and legal action.

4
Contact ACAS

Free advice: 0300 123 1100. If you're dismissed, start the ACAS early conciliation process immediately — time limits are strict.

5
Consider an Employment Tribunal claim

If dismissed, claim unfair dismissal. Under ERA 2025, fire and rehire dismissals are automatically unfair in most cases. No qualifying period required from April 2026.

Common questions

Frequently asked questions

Is fire and rehire now illegal?
Under ERA 2025, it is automatically unfair dismissal in most circumstances — making it practically unlawful for most employers. There is a very narrow exception for genuine financial emergencies, but the burden of proof on employers is high.
Can I refuse to sign a new contract?
Yes, but your employer may then dismiss you. If dismissed, that is likely automatically unfair dismissal under ERA 2025. Do not sign anything without taking advice first — contact ACAS or a solicitor.
What if my employer says the changes are necessary for the business to survive?
They must be able to prove this is genuinely the case — not just commercially convenient. "Business survival" is one of the narrow exceptions under ERA 2025, but courts will scrutinise the evidence carefully.
Do the rules apply to small employers?
Yes — ERA 2025 applies to all employers regardless of size. The collective consultation rules (30/45 days) only apply when 20+ employees are affected, but the automatic unfair dismissal protection applies to everyone.
Free rights guidance

Facing fire
& rehire?

Describe your situation and get personalised guidance on your rights and options.

ACAS
0300 123 1100
acas.org.uk
Citizens Advice
0800 144 8848
citizensadvice.org.uk
TUC — Trade Union Congress
Find your union
tuc.org.uk/join-union
UK Work Rights — Free checker
Fire & Rehire Checker
ukworkrights.co.uk/firerehire.html

General rights guidance only — not legal advice · Verified July 2026 · © UK Work Rights Ltd · Company No. 17228507