Fired, then hired back?

You could be dismissed and then offered your old job with lower pay, different hours or worse benefits. This is known as dismissal and re-engagement, or fire and rehire. On 22 October 2026, the government opened a consultation on a revised code explaining the forthcoming restrictions.

Responses are accepted until 11:59pm on 17 December 2026. The proposals apply to England, Scotland and Wales, not Northern Ireland.

What applies now

An employment contract is legally binding. An employer normally cannot simply rewrite its terms without the employee's agreement. It should first share information about the proposed changes, hold meaningful consultation and consider reasonable alternatives.

Dismissal followed by an offer of re-engagement remains possible as a last resort. The employer must have a potentially fair reason, follow a fair process, give the correct notice and offer a right of appeal. The current code says the employer should contact Acas before first raising the possibility of dismissal and re-engagement.

If an employer unreasonably fails to follow the current code, an employment tribunal may increase an employee's award by up to 25%. An award may also be reduced by up to 25% if the employee unreasonably fails to comply.

What is planned from March 2027

The government plans to commence the main restrictions in March 2027. A dismissal intended to force a change to a core term will become automatically unfair unless the employer meets a narrow exemption involving severe financial difficulty and no reasonable alternative.

The draft identifies core changes as:

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• a reduction in pay;
• a change to total working hours;
• a reduction in leave entitlement;
• a change to pension terms;
• specified changes to shift patterns.

It is also intended to be automatically unfair to dismiss an employee and replace them with an agency worker, contractor or another non-employee doing substantially the same work. Changes to non-core terms, such as work location or job role, would not be automatically unfair but would face enhanced ordinary unfair-dismissal scrutiny.

Important: the revised code is still a draft, not a current rule. Both Houses of Parliament must approve it. The 2024 code applies now; the government intends to revoke it in March 2027 and bring the new code into force in summer 2027.

What employees should do

1. Ask for every proposed change, the reasons and the timetable in writing.
2. If you disagree, object in writing. Continuing to work without objecting can sometimes be treated as acceptance.
3. Keep your old contract, letters, payslips and notes of meetings.
4. If you receive dismissal notice, check the notice period and submit an internal appeal.
5. Get individual advice before resigning: constructive-dismissal claims are complex.

Where 20 to 99 employees are affected, collective consultation will normally need to begin at least 30 days before the first dismissal. For 100 or more employees, the minimum is normally 45 days.

What small employers should do

1. Separate essential changes from desirable ones and identify whether pay, hours, leave, pensions or shifts are affected.
2. Record the business case, financial evidence, alternatives considered and employee counterproposals.
3. Do not use dismissal as a negotiating threat or begin with pre-written notices.
4. Contact Acas before first raising possible dismissal and re-engagement.

Employees, businesses, unions and other interested parties can respond to the official consultation by 17 December. Checked 26 October 2026.