Employment law changes will make it automatically unfair to dismiss staff for refusing contract changes or rehiring on worse terms.
UPDATE - February 2026
Following the government’s updated implementation timeline, the Fire and Rehire provisions have now been delayed until at least January 2027.
January 2026 Update - Confirmed finalised rules on fire and rehire
The Act has finalised, and this provision has been softened quite substantially. The final rules on fire and rehire rights include:
- The practice of fire and rehire/replace are automatically unfair, only for changes to certain core terms, including:
- Pay
- Required number of working hours
- Pension
- Shift times and length
- Time off rights
- Other restricted changes will be defined in future regulations, but may include benefits.
There is a narrow exception, where the business is in extreme financial distress and there are no other alternatives. In this situation, employers must ensure they comply with the Code of Practice on dismissal and re-engagement, which is to be updated.
Other changes are not automatically unfair. ETA October 2026.
Employment Rights Bill information that's relevant to your sector
We've created one central hub for independent retailers to access key information on the Employment Rights Bill, set to be in force in summer 2025.
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