Code of Practice on Dismissal and Re-engagement Now in Force

Nikki Hampson
Solicitor
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Earlier this week, the statutory Code of Practice on Dismissal and Re-engagement, commonly known as ‘fire and re-hire’, came into force.

The Code emphasises that dismissal and re-engagement should only be used as a last resort, after a period of thorough consultation with the employee. For an overview of its key provisions, please see our previous JEL alert.

A failure to follow the Code does not, in itself, provide the basis for a claim. However, much like the ACAS Code of Practice on Disciplinary and Grievance Procedures, employment tribunals will take this Code into account when considering certain claims, such as unfair dismissal. If an employer is deemed to have unreasonably failed to follow the Code, the tribunal can increase a compensatory award by up to 25%.

The tribunal will not, however, have discretion to apply this compensatory uplift where the claim is for a protective award for failure to inform and consult in respect of collective redundancies.

Although this Code of Practice has only recently come into force, it is expected to be strengthened and replaced in the not-so-distant future given Labour’s commitment to ‘put an end’ to fire and re-hire.

If you would like to read the Code of Practice, you can access it, here.

If you would like to discuss the implications of the Code of Practice, or if we can provide support or assistance on any other employment matters, please don’t hesitate to contact a member of the team on 0141 331 5150.

Topics: Dismissal and Re-engagement