Fire and Re-hire
In late March, P&O Ferries made 800 members of staff redundant instantaneously and with no notice, to then go on to replace them with cheaper agency workers. This sparked wide range shock and triggered government interest in introducing a new statutory code of practice covering fire and rehire.
In late March, P&O Ferries made 800 members of staff redundant instantaneously and with no notice, to then go on to replace them with cheaper agency workers.
This sparked wide range shock at the very blatant disregard for the law, namely that of having a meaningful consultation, and has resulted in calls being made for P&O Ferries to repay the £11 million it received from the government during the coronavirus pandemic to furlough its staff.
Where employers are planning to make 20 or more staff redundant within any 90-day period, they must first consult staff and speak to trade union representatives. The key is that this consultation needs to be ‘meaningful’ and very much a two-way process between employer and employee. If this doesn't happen, employees are entitled to take their employer to a tribunal.
With a 103% rise in planned redundancies between January and February 2022, together with increases in interest rates, rising energy costs and the cost-of-living crisis, this should act as a cautionary tale to businesses. If employers are considering redundancy, they must ensure that they follow the collective consultation rules carefully. The government has also indicated that a new statutory code of practice covering fire and rehire will be introduced in due course. An employer who unreasonably fails to comply with the code when it is introduced would risk an uplift of up to 25% being awarded on relevant tribunal compensation.
In addition to the financial implications of ignoring the collective consultation regime, the likely media interest and ongoing reputational damage may well be an incredibly hard hurdle for businesses to get over.Contact
Mark Hickson
Head of Business Development
onlineteaminbox@brownejacobson.com
+44 (0)370 270 6000
Related expertise
You may be interested in...
In Person Event
Ascensus and O Shaped workshop: Ethics in the spotlight
Opinion
Opportunities for private children’s services to engage with Regional Care Cooperatives
Legal Update
What’s in a name: ESG principles and UK local authorities
Opinion
Balancing employer flexibility and employee rights
Legal Update
Right to work update: eVisas
Legal Update
How the Data (Use and Access) Bill will impact the public sector
Opinion
Empowering your workforce: Key tips on adjustments for new starters
On-Demand
Shaping a culture of respect and safety: Preventing sexual harassment in our schools
Legal Update
Top five takeaways for schools on the Employment Rights Bill
Legal Update
Building an inclusive workplace: strategies for attracting and retaining disabled talent
On-Demand
How schools can grapple with new employment law to thrive in a new era
Press Release
Browne Jacobson advises The Jordon Group on transformative merger
Press Release
Browne Jacobson advises UK’s leading fire protection specialist on key acquisition
Press Release
Browne Jacobson advises IT solutions specialist on sale to Goldman Sachs-backed international digital transformation provider
Online Event
EdCon 2025
Legal Update
Breaking the glass ceiling: Empowering female leadership in the food and drink sector
Legal Update - Employment Rights Bill
What does the Employment Rights Bill mean for employment practices liability insurance?
Opinion - Employment Rights Bill
Beyond the Bill: Exploring the horizon of new employment rights and proposed measures
Legal Update - Employment Rights Bill
Labour’s employment law reforms: Employment Rights Bill unveiled
Legal Update
Expanding the role of school attendance mentors
Online Event
Managing safeguarding allegations against staff
Press Release
Browne Jacobson advises UK climbing operator on sale to Belgian investment firm
Legal Update
Organisational approaches to ESG and sustainability matters
Legal Update
Balancing acts: Navigating the complex risks in adult social care provision
Legal Update
What the UK Covid-19 Inquiry means for higher education providers
Opinion
New anticipatory duty to prevent sexual harassment at work: final EHRC guidance published
Opinion
Employment tribunal case shines light on mistaken customer communications
Press Release
Browne Jacobson launches new HR services offering in health and social care
Press Release
Browne Jacobson and CBI roundtable explores how to finance public infrastructure post-PFI
Opinion
Navigating the new norms of flexible working and reasonable adjustments
Legal Update
Hybrid working, the right to flexible working and how to make it work for public sector employers
Press Release
Comments on the publication of Universities UK’s (UUK) report
Press Release
An interview with HSBC’s ex-commercial manager
Opinion
HMRC score on employment status: Football referees may be employees
Press Release
Browne Jacobson advises global digital transformation services provider on PE investment and acquisition of US and Hungary-based commerce consultancy
Legal Update
Supreme Court re-instates injunction in Tesco fire and re-hire case
Legal Update
A balancing act: Navigating between positive action and discrimination in the workplace
Legal Update
CQC publish National review of maternity services in England
Press Release
Leading the conversation on DEI in the food & drink industry: celebrating the contribution of women
