EXCLUSIVE: Ending controversial ‘fire and rehire’ practices – a key plank of Labour’s Employment Rights Bill – will come into force from March 2027, The Mirror understands
A huge boost to workers’ rights protecting them from being sacked and rehired on worse terms has been hit by a delay – but will come into force next year.
Ending the worst “fire and rehire” practices – a key plank of Labour’s Employment Rights Bill – will come into action from March 2027, The Mirror understands.
It had originally been due to be prohibited at the start of January next year but has been knocked back due last year’s wrangling in the House of Lords over the legislation, sources said.
Under the measures, employers will be stopped from firing their staff and taking them back on in order to force through extreme changes to working patterns.
This could include moving someone from day to evening shifts or from weekdays to weekends without agreement.
Travel and accommodation expenses written into original contracts will also be protected in order to prevent bosses from slashing them after firing workers to cut costs.
It follows the closure of a government consultation on ‘fire and rehire’ practices with trade unions, employers, workers and trade business.
Minister for the Future of Work, Kate Dearden said: “For too long, some employers have forced through pay cuts and damaging changes to shifts, leaving workers facing an unacceptable choice between accepting worse conditions or losing their job altogether.
“These changes will put an end to the most damaging practices and outrageous behaviour. We’re giving working people real protections, while ensuring businesses retain the flexibility they need to protect jobs when times are tough.”
TUC general secretary Paul Nowak added:“Fire and rehire has no place in modern Britain. This is an important step forward and could help stop Britain’s worst bosses firing and rehiring staff on worse pay and conditions.
“But the law has to be watertight to protect workers. That’s why it’s right that the government has said it will actively monitor for continued use of fire and rehire and look at further strengthening laws if needed.”
The Department for Business and Trade said: “Following consideration of the consultation responses, the government will introduce regulations to exclude expenses and benefits in kind from the scope of restricted variations, except for certain travel and accommodation expenses and benefits.
“The regulations will also include changes to shift patterns between day and night working, and weekday and weekend working within the scope of restricted variations.”
“The government intends to legislate when parliamentary time allows, with the aim of bringing the regulations into force alongside the Employment Rights Act 2025’s fire and rehire protections in March 2027.”
Under the changes firms will also be banned from sacking staff just to replace them with cheaper agency workers doing the same job.
In 2022, P&O Ferries sparked national outrage by firing 800 crew – many by pre-recorded message – and was accused of “acting like gangsters” over the sackings. It attempted to justify the move at the time by claiming it was suffering losses of £100million a year.