What does the Employment Rights Bill mean for fire and rehire?

One of the most controversial practices within the business world is that known as fire and rehire.

This is where an employer sacks members of staff before offering them their jobs back on inferior terms. The Employment Rights Bill that is a flagship policy of the government would change the legal situation around fire and rehire. So, what will it mean for businesses?

What changes will there be?

If the bill becomes law, the practice of fire and rehire would be illegal. The bill makes it clear that employers cannot sack people as a way of imposing new employment terms on them. The only exception to that is if a company can demonstrate that the changed terms were unavoidable, due to something like financial problems.

What should businesses do?

It would be wise for businesses of all sizes to prepare for this, as the bill seems likely to become law. For most companies, it will be a matter handled by HR. New policies will need to be drafted, agreed upon and implemented. One of the benefits of using outsourced HR services in Northampton is that they can offer employment law expertise. That will help to ensure businesses get it right.

While many aspects of the Employment Rights Bill are opposed by businesses, that is not true in this case. A survey conducted by the Institute of Directors found that 61% of business owners approved of banning fire and rehire.

For expert and professional HR services in Northampton, get in touch with FiveRivers Consulting now. Alternatively, you can listen to our HR Hacks and Halos podcast on Apple, Spotify or Amazon now to get greater insights into the changing world of HR.