‘Fire and rehire’ is where an employer dismisses an employee and offers re-engagement on new terms and conditions of employment, usually where agreement cannot be reached on proposed changes.
Under UK employment law, there are statutory requirements that must be met. Employers must have a potentially fair reason for dismissal, follow a fair procedure and provide at least the statutory minimum notice. Where 20 or more employees are affected, collective consultation obligations may also apply.
Failing to follow the correct process can result in unfair dismissal claims and financial penalties, so legal advice should be sought before taking this step.
