Collective redundancy and fire and rehire consultation
We’d like to gather your views on the government’s consultation on collective redundancy and fire and rehire practices which aims to enhance and strengthen the collective redundancy framework and protections for employees against fire and rehire practices.
To help us with our response we are seeking the views from members of HR and payroll to provide a response to our surveys on behalf of your organisation or as an individual.
Please complete our online survey to give your feedback by midnight Sunday 24 November 2024.
Organisations are also encouraged to submit their own responses especially if they wish to comment on other sections of the consultation proposals.
More information on the consultation
Collective redundancy
The requirements for the consultation to start prior to the first dismissal depends on the total number of proposed redundancies.
Currently, when an employer proposes redundancy for 20 or more employees in a 90-day period, the employer must consult with employees and the consultation should begin at least 45 days before the first dismissal for 100 or more redundancies or at least 30 days before the first dismissal for 20-99 redundancies.
If employers do not comply, a tribunal can award a protective award of up to 90 days’ pay to each affected employee.
The purpose of this consultation is to seek views on the proposal to increase the maximum period of the protective award that a tribunal can award. The government is considering two options:
- increasing the maximum protective award a tribunal can grant from 90 to 180 days, or potentially removing the cap entirely
- whether interim relief should be available to employees who bring claims for the protective award.
Fire and rehire
Currently, employers can use fire and rehire if they have a valid business reason, such as economic changes or harmonising terms and conditions, and must comply with collective consultation obligations when firing and rehiring 20 or more employees.
The Employment Rights Bill includes a clause to end unscrupulous fire and rehire tactics in which employers will need to prove financial difficulties that threaten their viability and that changing the contract was unavoidable in order to use fire and rehire.
The consultation is seeking views on whether interim relief should be available to employees who are bringing an unfair dismissal claim under the new right which will be introduced by the employment rights bill (subject to Parliament’s approval).
Interim relief is available for certain unfair dismissal claims under the Employment Rights Act 1996 and the Trade Union and Labour Relations (Consolidation) Act 1992. Claimants typically apply for this relief when initiating their unfair dismissal claims. If granted, the court may order the employer to either reinstate the employee or continue paying their salary and benefits until the final hearing.
