The UK government has introduced major reforms to the controversial “fire and rehire” practice through the Employment Rights Bill. Employers must now follow a statutory checklist before dismissing employees who refuse contractual changes. Automatic dismissal is limited to specific “restricted variations” such as pay, hours, and holidays.
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- Employers must justify changes and show proper consultation.
- Public sector exceptions apply only in cases of financial sustainability.
- A consultation on supporting regulations is expected in autumn 2025.
Why It Matters:
These changes aim to protect employees from unfair dismissal and ensure employers follow transparent procedures. Businesses should review their contracts and HR policies to stay compliant
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