Employers looking to change contractual terms can do so through mutual agreement with their employees. However, if employees don't agree to the new terms, employers have the option to terminate existing employment contracts and re-engage the employees under new terms. This process, often called 'fire and rehire', must be handled carefully to ensure compliance with legal and ethical standards.
Here are the key factors schools and trusts should consider before resorting to fire and rehire practices.
Employers must have legitimate and justifiable business reasons for changing an employee's terms of employment. This reason should be clearly communicated to employees to foster understanding and cooperation.
Schools and trusts must follow a fair and transparent procedure. Employers should behave reasonably throughout the process, ensuring that employees are treated fairly.
Employers should explore all possible alternatives before resorting to fire and rehire practices. This might include negotiating with employees, offering voluntary redundancies, or considering other cost-saving measures.
Clear and open communication with employees is essential. Employers should keep any affected staff informed at each stage of the process, explaining the reasons for the changes and how they will be implemented.
Engaging in meaningful consultation with employees and their representatives is a key requirement. This helps to address concerns, gather feedback, and potentially reach a mutually acceptable solution.
While the Employment Rights Bill makes it automatically unfair to dismiss employees who refuse to vary their contract, an outright ban on this practice hasn't yet been introduced. Therefore, schools and trusts should consider the risks of carrying out fire and rehire practices from both a legal and reputational perspective.
Any dismissal, even if followed by re-engagement, carries the risk of unfair dismissal claims. Employers must ensure that their actions are legally defensible.
The practice can damage industrial relations, leading to possible strike action or other forms of collective resistance from employees.
Fire and rehire is a complex and sensitive process that requires careful handling. Employers must navigate this landscape with a focus on fairness, transparency, and respect for their employees. By adhering to the new code of practice and the provisions of the Employment Bill, employers can mitigate risks and maintain positive industrial relations while achieving necessary business changes.