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

Bank of Dave founder and university vice chancellor on honours list Dave Fishwick

Bank of Dave founder and university vice chancellor on honours list

15 Jun 2026

2

FWP to lead The Villa into a new chapter The Villa VetPlus Academy Spa View

FWP to lead The Villa into a new chapter

12 Jun 2026

3

Healey resignation sparks new fears over GCAP future GCAP funding

Healey resignation sparks new fears over GCAP future

12 Jun 2026

4

Top honour for Northcote’s Lisa Lisa Goodwin Allen receiving the award

Top honour for Northcote’s Lisa

12 Jun 2026

5

Community bank’s new HQ takes shape Tia Warbrick

Community bank’s new HQ takes shape

12 Jun 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
Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

The Business Network Central and East Lancashire
LBV Header (33).png.png
LBV Hub Networking
18 Jun 2026

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Chamber Business Lunch
LBV Hub Networking
19 Jun 2026

Chamber Business Lunch

Lancaster House Hotel, Lancaster, LA1 4GL

11:00 - 14:00

The Bay Business Club
Logo.jpg.jpg
LBV Hub Networking
22 Jun 2026

The Bay Business Club

Morecambe Football Club, Morecambe, LA4 4TB

17:00 - 19:00

Preston Freelancer Meet-Up: June
June Freelancer Square.png.png
LBV Hub Networking
24 Jun 2026

Preston Freelancer Meet-Up: June

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

How to manage grievances…with confidence
Logo.jpg.jpg
LBV Hub Seminars
24 Jun 2026

How to manage grievances…with confidence

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Cyber Crime Awareness Event
Logo.jpg.jpg
LBV Hub Seminars
24 Jun 2026

Cyber Crime Awareness Event

Morecambe Golf Club, Morecambe, LA4 6AJ

13:00 - 16:00

How can smarter employee benefits reduce costs and improve staff retention?
Screenshot 2026-05-20 100211.png.png
LBV Hub Roundtables
25 Jun 2026

How can smarter employee benefits reduce costs and improve staff retention?

Forbes Solicitors , Preston, PR5 6AW

08:30 - 10:00

NO Rackets Required - The Ultimate Padel Party
Crowdfunder.png.png
LBV Hub Social
26 Jun 2026

NO Rackets Required - The Ultimate Padel Party

Pendle Padel Club, Nelson, BB9 5SR

16:00 - 00:00

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