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

Bowker Motor Group marketing team wins National BMW and Porsche Awards Amy Lancaster-Hall, Marketing Manager; Freya Hesketh, Marketing & Social Media Executive; Chloe Robinson, Graphic Designer and Ellie Shaw, Social Media Expert

Bowker Motor Group marketing team wins National BMW and Porsche Awards

20 Mar 2026

2

First phase of major Blackpool town centre £17m road upgrade starts Aerial image of Blackpool town centre

First phase of major Blackpool town centre £17m road upgrade starts

20 Mar 2026

3

Breck submits planning for 64-home affordable housing scheme Bolshaw Road layout

Breck submits planning for 64-home affordable housing scheme

20 Mar 2026

4

Barons Contract Furniture announces strategic expansion with major investment in Leyland Barons Furniture expansion

Barons Contract Furniture announces strategic expansion with major investment in Leyland

19 Mar 2026

5

Pleasure Beach Resort urges support for the tourism sector as it launches its 130th season Late night at Pleasure Beach resort

Pleasure Beach Resort urges support for the tourism sector as it launches its 130th season

19 Mar 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
AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36 Outdoor Elements Logo1920x1008
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Exploring Debt Finance: Unlocking SME Growth
LCC Event Logos
LBV Hub Exhibitions
24 Mar 2026

Exploring Debt Finance: Unlocking SME Growth

Farleys Solicitors, 3 Mead Way, Shuttleworth Mead, Padiham, Burnley, BB12 7NG

09:00 - 12:00

The Marketing Meetup Lancashire
TMM Lancs - 27th Jan.jpg.jpg
LBV Hub Networking
25 Mar 2026 - 25 Mar 2026

The Marketing Meetup Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

Invest in Pendle: A Live Celebration Event
Northlight photograph
LBV Hub
25 Mar 2026

Invest in Pendle: A Live Celebration Event

The Leisure Box, Northlight Mill, Glen Way, Nelson, BB9 5NH

12:00 - 14:00

The Employment Rights Act 2025: What you need to know
Logo.jpg.jpg
LBV Hub Seminars
26 Mar 2026 - 26 Mar 2026

The Employment Rights Act 2025: What you need to know

Lancaster & Morecambe College, Lancaster, LA1 1TZ

08:00 - 10:00

90 Day Business Planning Workshop
LBV Hub Networking
27 Mar 2026 - 27 Mar 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

The Ultimate Music Quiz
Logo.jpg.jpg
LBV Hub Fundraisers
27 Mar 2026 - 27 Mar 2026

The Ultimate Music Quiz

Morecambe Football Club, Morecambe, LA4 4TB

19:00 - 22:30

Lancashire Business Expo 2026
SE, Lancashire 2025.png.png
LBV Hub Exhibitions
27 Mar 2026 - 27 Mar 2026

Lancashire Business Expo 2026

Sir Tom Finney Sports Centre, Preston, PR1 2HE

09:00 - 15:00

RISE - a tailored 6 month leadership programme for women across the North West
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
15 Apr 2026 - 15 Apr 2026

RISE - a tailored 6 month leadership programme for women across the North West

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Sickness Absence: key actions for your business
Logo.jpg.jpg
LBV Hub Seminars
22 Apr 2026 - 22 Feb 2026

Sickness Absence: key actions for your business

The Longlands Hotel, Carnforth, LA6 1JH

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin