In January, the Government initiated a consultation on a draft statutory Code of Practice on Dismissal and Re-engagement. It establishes guidelines for when employers may resort to this approach and explores alternatives to dismissal, including consultation with employees. Although not legally binding, the Code provides practical guidance for avoiding and managing conflicts arising from changes in employment terms.

The Code emphasises consultation and ongoing communication between employers and employees and/or their representatives. Employers are encouraged to engage in good-faith consultation for as long as reasonably possible, ensuring that all affected employees are informed and consulted.

Regarding information sharing, employers should disclose as much detail about the proposed changes as reasonably possible, considering enabling employers/representatives to ask relevant questions. The focus on both information and consultation aims to facilitate agreement between employer and employee, minimising any detrimental effects on the relationship.

The Code acknowledges that there may be other legal obligations beyond its scope such as collective consultation requirements, transfer of employment obligations and health and safety implications. Employers must fulfil these obligations alongside the provisions outlined in the Code, promoting compliance throughout the process of informing and consulting employees.

If agreement seems unattainable, employers may consider dismissal and re-engagement as a last resort. The Code advises preliminary measures including consulting with ACAS for advice before proceeding. Once it has been established to the employer that the employees/ representatives do not agree to the changes proposed, the employer should re-examine its proposals and consider any feedback it has received.*

The Code highlights the legal parameters of opting for dismissal and re-engagement including any applicable qualifying periods that may result in a claim by an employee for unfair dismissal. Additionally, an employer should give as much notice as reasonably practicable of the dismissal and must comply with whichever is greater than the employee’s contractual or statutory notice period as a minimum.

At GS Verde Law, we understand the challenges businesses face in contractual changes and managing employment disputes. Our employment team is here to provide expert guidance on ensuring compliance with the Code of Practice and safeguarding your business interests. If you have any concerns regarding this or any other related employment matter, please contact us for our support.