Read this before you fire and rehire employees

In March 2022, following the P&O Ferries scandal, the government announced a new statutory code of practice on ‘fire and rehire’.

The code is designed to encourage employers to engage in meaningful consultations with employees if they wish to introduce changes to employees’ terms.

Firing and rehiring occurs when employers dismiss workers and rehire them on new, less-favourable terms, often to save operational costs.

P&O Ferries’ sacking of 800 staff by video recording demonstrates what not to do when planning to make redundancies or change workers’ terms.

Whilst terminating employment via a videocall is not ideal (it is the message rather than the delivery method that is important), the issue with the P&O Ferries case is the lack of warning or consultation.

Had they complied with their legal obligations, P&O Ferries would have notified the government’s Redundancy Payments Service, then informed staff of the risk of redundancy and entered formal consultations for a minimum of 45 days with affected employees.

The 45-day requirement applies where an employer proposes to make more than 100 staff redundant.

During the consultation process, alternatives to dismissal would have been explored and although, ultimately, it may have made no change to the outcome, staff would have been given time to adjust and explore options.

The new statutory code will assist businesses to hold transparent consultations and to act as a deterrent to businesses in similar circumstances to P&O Ferries.

Its use will be considered by courts and employment tribunals when determining claims.

Where employers unreasonably fail to follow the code, employees’ compensation may be increased by up to 25 per cent.

Currently, legislation to implement the new code will be introduced when parliamentary time allows.

Enjoyed this? Read more from Olivia Bailey, Harrison Drury

Latest news

1

Lancashire turbines sold to Belgium Europlay 2

Lancashire turbines sold to Belgium

20 Oct 2026

2

Round of promotions across PM+M Pmm Promotions October 26

Round of promotions across PM+M

20 Oct 2026

3

Brysdales to sponsor transport category at Red Rose Awards Red Rose Awards

Brysdales to sponsor transport category at Red Rose Awards

19 Oct 2026

4

Cowgills expands into Lancashire following Haleys acquisition Haleys Image

Cowgills expands into Lancashire following Haleys acquisition

19 Oct 2026

5

Why flexibility matters for your fleet Lee Grendall Intack

Why flexibility matters for your fleet

19 Oct 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Commercial Planning Application workshop
Commercial Planning Workshop 20 Oct 2026

Commercial Planning Application workshop

Online, Accrington , BB5 0PF

12:00 - 13:00

They’ve Already Decided About You – Sales Geek Sales Club: how buyers judge you before you speak – and what to do about it
Lancaster And Morecambe Logo 1 21 Oct 2026

They’ve Already Decided About You – Sales Geek Sales Club: how buyers judge you before you speak – and what to do about it

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Mock Tribunal - step inside an employment tribunal… without the risk
LBV Website Events GraphicMock Tribunal 21 Oct 2026

Mock Tribunal - step inside an employment tribunal… without the risk

Online, Preston, PR1 3JD

09:30 - 12:30

Preston Freelancer Meet-Up: October
Freelance Meet Up 22 Oct 2026

Preston Freelancer Meet-Up: October

Society1, 9-10 Cross Street, Preston, PR1 3LT

10:00 - 12:00

North West Business Expo
LBV Website Events GraphicBusiness Expo 1 23 Oct 2026

North West Business Expo

Toughsheet Stadium , Bolton, BL6 6JW

09:00 - 15:00

Girlie Night Out
Lancaster And Morecambe Logo 1 23 Oct 2026

Girlie Night Out

Lancaster Brewery, Lancaster, LA1 3LA

19:00 - 23:00

Lancashire Finance Leaders Forum: The Autumn Budget in Focus
ian-UmTFcwHLPC0-unsplash.jpg.jpg 29 Oct 2026

Lancashire Finance Leaders Forum: The Autumn Budget in Focus

Farington Lodge Hotel, Stanifield Lane, PR25 4QR

08:00 - 10:00

The PM+M Autumn Budget seminar - East Lancashire
Autumn Budget 2026 LBV 29 Oct 2026

The PM+M Autumn Budget seminar - East Lancashire

Blackburn Rovers Football Club (Premier Suite), Blackburn, BB2 4JF

08:00 - 10:30

Autumn Budget 2026
Lancaster And Morecambe Logo 1 30 Oct 2026

Autumn Budget 2026

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin