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Business Update

29 March 2022

Proposing MP
Sutton and Cheam
Type
Written Ministerial Statement
Department
Department for Business, Energy and Industrial Strategy

At a Glance

Issue Summary

The statement addresses the use of 'fire and rehire' tactics by employers to renegotiate contracts and announces plans for a statutory code of practice.

Action Requested

The Government will bring forward a statutory code of practice on dismissal and reengagement under section 203 of the Trade Union and Labour Relations (Consolidation) Act 1992, consult on the draft later this year, and aim to introduce it when parliamentary time allows.

Key Facts

  • The Government has asked Acas to look at 'fire and rehire' tactics.
  • Acas published online guidance stating employers should consider dismissal as a last resort after thorough consultation.
  • A statutory code of practice will be admissible in evidence before courts or Employment Tribunals in England, Scotland, and Wales.
  • Employment Tribunal judges can award an uplift in compensation up to 25% for employees subject to unfair treatment.
Assessment & feedback
Summary accuracy