The Code of practice associated with the legal framework of ‘dismissal and re-engagement’ has been announced, 18 July 2024.
Dismissal and Re-Engagement
Employers may occasionally need to consider proposing changes to employees’ contracts of employment due to economic decisions. Where changes to the terms within the contract are required, both the employer and employee are required to agree (including the involvement of authorised trade union or other employee representations where applicable). Where agreement is not reached, then the employer may, as a last resort, dismiss the employees, and offer to re-engage them on new terms, or offering to engage other employees.
This employment approach has been subject to negative impacts to the employer and the employee relationship, and in addition can potentially lead to engagement issues and industrial conflict.
The purpose of the code is to ensure that the employer has taken all reasonable steps to avoid the dismissal, including exploring all alternatives and providing a full and meaningful consultation with the aim of reaching an agreed outcome. The code seeks to ensure that the employer does not put undue pressure on the employees concerned, during the consultation programme, by threatening them with dismissal.
The code outlines guidance where the employer is looking to make changes to one or more of the employees’ terms outlined in the contract of employment, and includes the legal obligations with which the employer must comply.
The Labour government has indicated that they tend to make further changes to the practices associated with ‘dismissal and re-engagement’.
If you have any queries relating to ‘dismissal and re-engagement’, and you are looking to make changes to the employee’s contracts of employment please contact our Employment Team on 0345 6460406 or fill in our online enquiry form and a member of our Team will be in touch.