Commons Sense

House of Commons · Ministers' Questions

Fire and Rehire

Thursday 16 May 2024 · 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 4 Not answered 0

Key points

  • Government published a statutory code of practice on dismissal and re-engagement to address fire and rehire practices.
  • The Seafarers Wages Act 2023 was introduced to ensure minimum wage for seafarers operating in UK waters.
  • The code of practice on dismissal and re-engagement will provide workers up to 25% extra compensation if employers breach the code.

Topics (select to filter)

Questions & Answers

Q1 Sam Tarry
Employment Transport
Context

Concern about widespread use of 'fire and rehire' practice affecting employees, especially incidents like British Airways trying to sack staff and P&O Ferries unlawfully sacking 786 staff.

Question

I am concerned about the steps being taken with Cabinet colleagues to prevent the use of fire and rehire practices in the transport industry. The TUC found that since 2020, about 10% of all workers have had to reapply for their job due to fire and rehire. British Airways tried to sack 36,000 staff through this practice but was stopped by strike action; Go North West threatened similar actions which were averted; and P&O Ferries unlawfully sacked 786 staff before replacing them with agency workers. I urge the Government to outlaw this practice rather than just issuing best practice guidelines.

Answer from Anthony Browne

The Government published a statutory code of practice on dismissal and re-engagement addressing fire and rehire. This aims to ensure it is only used as a last resort with proper employee consultation and fairness. After the P&O incident, we introduced measures including the Seafarers Wages Act 2023, coming into force this summer, and the seafarer charter which P&O has now committed to.

Partly answered

Not addressed: Did not provide a specific commitment to outlaw fire and rehire practices in transport industry

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Q2 Sam Tarry
Employment Parliamentary Procedure
Context

Incidents of fire and rehire practices have occurred in various companies, with British Airways attempting to sack staff and P&O Ferries unlawfully dismissing seafarers.

Question

The TUC has found that since 2020 about 10% of all workers have had to reapply for their job due to fire and rehire practices. In 2020, British Airways tried to sack 36,000 staff through fire and rehire but was stopped by strikes; in 2021, Go North West threatened similar actions which were averted; in 2022, P&O Ferries unlawfully sacked 786 staff before replacing them with agency workers. The Government took no action in these cases.

Answer from Anthony Browne

After the P&O incident, we introduced a range of measures including the Seafarers Wages Act 2023 to ensure minimum wage for seafarers operating in UK waters. The code of practice on dismissal and re-engagement will come into force before summer recess giving workers up to 25% extra compensation if employers do not abide by it.

Partly answered

Not addressed: Did not provide a specific commitment to outlaw fire and rehire practices in the transport industry

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Q3 Mike Kane Lab Wythenshawe and Sale East
Taxation Employment
Context

P&O Ferries admitted to paying seafarers £4.87 an hour, below the UK minimum wage of £11.44 per hour.

Question

The UK's minimum wage is £11.44 an hour, but P&O admitted it paid seafarers only £4.87 an hour. This has been a breach of trust. What more will the Minister do to stop companies acting like modern-day pirates when it comes to fire and rehire?

Answer from Anthony Browne

P&O's practices, including on minimum wage issues, were unacceptable. The Seafarers Wages Act will ensure seafarers operating in UK waters get the minimum wage. We coordinated with France to set a minimum wage corridor for services between the UK and France.

Partly answered

Not addressed: Did not provide specific measures beyond legislation already mentioned

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Q4 Gavin Newlands SNP
Employment
Context

British Airways CEOs Willie Walsh and Álex Cruz threatened thousands of workers with fire and rehire four years ago, despite Government covid assistance being refused.

Question

Two years after P&O's actions, Peter Hebblethwaite appeared in Parliament admitting pay cuts for seafarers. British Airways' CEOs threatened workers four years earlier but took no action from the Government then or now. I asked if the fire and rehire code of practice would have prevented this threat, which it could not.

Answer from Anthony Browne

The P&O case is under investigation by the Insolvency Service. The point of the fire and rehire code of practice is to ensure it is used only as a last resort, with up to 25% extra compensation for employees if employers breach the code.

Partly answered

Not addressed: Did not clarify why new code could not prevent threats made previously by companies

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