Dismissal and re-engagement

It changes terms by ending one contract

Dismissal and re-engagement is the process of dismissing an employee and offering employment on new terms, usually after proposed contract changes have not been agreed. It is also called fire and rehire. The old employment contract ends even when the person accepts the new offer and continues doing substantially the same work.

This is not another way to edit a contract. It brings dismissal, notice, consultation and possible unfair-dismissal consequences into the decision. It is also different from redundancy when the employer still needs substantially the same role but wants it performed on different terms.

Explore agreement before the last resort

The current Great Britain statutory Code of Practice expects employers to share information, consult meaningfully, examine alternatives and avoid raising dismissal unreasonably early. The Code applies regardless of how many employees may be affected.

Start with the business problem, the proposed change and the alternatives considered. Give affected employees and representatives enough information and time to respond. Re-examine the proposal before deciding that dismissal is genuinely necessary.

Treat the law as a moving boundary

Great Britain protections are expected to change on 1 January 2027. The official factsheet gives that commencement date and says dismissals used to impose specified restricted variations, such as certain reductions to pay, hours or leave, will be automatically unfair unless a narrow financial-difficulty exception applies.

Other variations will instead receive enhanced ordinary unfair-dismissal protections. Regulations still need to settle some details, so the final rule and guidance must be checked before action.

Before taking action, confirm the rule then in force, the reason, consultation record, alternatives, notice and terms offered. Keep Northern Ireland separate: its contract-change framework is described in the nidirect guidance, not the Great Britain Code or commencement timetable.