Commons Sense

House of Commons · Ministers' Questions

Fire and Rehire

Thursday 30 November 2023 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Government consulted on a draft statutory code of practice on fire and rehire and plans to publish the final version in spring 2024.
  • P&O situation was described as a fire-only situation, not fire and rehire, and the Government condemned the actions.
  • Minister committed to bringing new measures on fire and rehire before the House next spring to provide workers with security.

Topics (select to filter)

Questions & Answers

Q1 Mick Whitley
Employment
Context

The concern over employers using fire and rehire tactics to change contractual terms of employment.

Question

What steps she is taking to prevent the use of fire and rehire practices. She asked about measures being taken to stop these practices.

Answer from Kevin Hollinrake

The Government consulted on a draft statutory code of practice on fire and rehire earlier this year. The final version will be published in spring next year, setting out employers' responsibilities when changing employment terms and ensuring dismissal and re-engagement is used only as the last resort.

Partly answered

Not addressed: Did not address any specific steps taken to prevent current use of fire and rehire practices beyond consulting on a code of practice

How: Under Review

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Q2 Nia Griffith Lab Llanelli
Employment
Context

P&O Cruises imposed new contractual terms on workers through fire and rehire tactics, despite the Government's promise to clamp down on them.

Question

The hon. Lady noted that P&O felt able to impose new contractual terms on workers last week through fire and rehire tactics, showing employers still feel they can use these tactics with impunity. She thanked the Minister for his answer but asked if there is any way legislation could be brought in more urgently to protect workers properly.

Answer from Kevin Hollinrake

Agreed with bringing legislation forward as quickly as possible. Stated P&O was not a fire and rehire situation but a fire-only situation, condemned by the Government. The new statutory code of practice will be in place in spring next year, allowing employment tribunals to increase employees' compensation by up to 25% if an employer fails unreasonably to comply with the code.

Partly answered

Not addressed: Did not commit to bringing legislation more urgently, only stated it would be in place next spring

How: Under Review

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Q3 Mick Whitley
Employment
Context

Concerns were raised that the Carnival group was making provision to fire and rehire hundreds of staff working on P&O Cruises and Cunard Line. This revived memories of last year when P&O Ferries sacked over 800 employees.

Question

Last week, concerns were raised about the Carnival group planning to fire and rehire hundreds of staff working on P&O Cruises and Cunard Line. The hon. Member asked if banning fire and rehire tactics once and for all is necessary to provide workers with security.

Answer from Kevin Hollinrake

Does not think completely banning fire and rehire is the right thing to do because companies may need to restructure quickly. Thinks employees' proper consultation rights should be observed, and employment tribunals can impose a significant uplift on redundancy payments if an employer does not follow the statutory code of practice.

Not addressed: Did not directly address whether to legislate against fire and rehire tactics

How: Changed Subject

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Q4 Justin Madders Lab Ellesmere Port and Bromborough
Employment
Context

Research found that between March 2020 and July 2021, 43,000 employers changed their employees' contracts through fire and rehire techniques. The Government promised action following the P&O scandal.

Question

Fire and rehire is rife in this country. Between March 2020 and July 2021, research found that 43,000 employers changed their employees' contracts through fire and rehire techniques. The hon. Member asked how many employees he estimates will have had their contract changed through fire and rehire in the two-year period before any changes are implemented.

Answer from Kevin Hollinrake

Does not have that number to hand. Wants to strike a balance between employers and their workforces, condemns what P&O did, committed to bringing in new measures on fire and rehire and intends to bring those provisions before the House next spring.

Not addressed: Did not provide an estimate of employees affected by fire and rehire over two years

How: Changed Subject

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