Outcome of the fire and rehire consultation

Fire and rehire is when an employer dismisses an employee and offers to employ them again on a new contract, usually with less favourable terms and conditions. It can also involve employing someone else to do the same job on the new terms.  

The ERA introduces new protections for employees when an employer uses dismissal and re-engagement to change employment contracts. It also protects certain key contract terms as restricted variations. Dismissal to change these terms may be automatically unfair. 

What did the consultation cover?

The government consulted on how new protections should apply to:

• expenses
• benefits in kind, such as non-cash benefits provided through employment
• shift patterns.

What has the government decided?

After considering the consultation responses, the government will introduce regulations that: 

• exclude most expenses and benefits in kind from restricted variations, while keeping certain travel and accommodation expenses and benefits within the restricted category.
• treat changes between day and night working, and between weekday and weekend working, as restricted variations. 

This will mean that employees will be protected against dismissal and re-engagement where an employer seeks to make these specified changes. At the same time, employers will retain some flexibility to change other expenses, benefits and working arrangements when operational needs change.

The full consultation response can be found on GOV.UK.

When will the changes take effect?

The regulations are expected to come into force in March 2027.

Related consultation

The government has also launched a consultation on a revised code of practice for dismissal and re-engagement. Organisations are encouraged to respond directly to the consultation should they wish to do so, by 17 December 2026.