UK Bars Fire-and-Rehire for 5 Contract Terms From Jan. 1, 2027
Updated
Updated · mcguirewoods.com · Jul 27
UK Bars Fire-and-Rehire for 5 Contract Terms From Jan. 1, 2027
2 articles · Updated · mcguirewoods.com · Jul 27
Summary
Jan. 1, 2027 marks a major shift in Great Britain: dismissing and rehiring staff to force unagreed changes to pay, hours, pensions, shift patterns or time off will be automatically unfair.
Day-one protection means workers will no longer need qualifying service to challenge those dismissals, and employers can escape the ban only by proving severe financial distress threatened the business's survival.
Changes outside those restricted terms — such as location, job title, duties or restrictive covenants — can still use fire and rehire, but tribunals must weigh consultation, the reason for change and anything offered in return.
Employers are being urged to review contracts, templates and variation clauses before 2027, because inserting new powers later to make restricted changes will itself be treated as a restricted variation.