New Guidance Protects Employees from Unfair Contract Changes
The Department for Business and Trade (DBT) has released a new Code on good practice for employers in England, Scotland, and Wales. This code, available on GOV.UK, outlines employers’ responsibilities when considering changes to employee contracts.
The key goal of the Code is to ensure fair treatment of employees and minimise disputes. It emphasises avoiding dismissal and re-engagement (fire and re-hire) as tactics, encouraging employers to explore alternative solutions first.
The Code encourages employers to:
- Seek alternatives to dismissal: Employers should prioritise finding solutions that don’t involve dismissal, where possible.
- Engage in meaningful consultation: Employers should have open discussions with employees or their representatives to reach mutually agreeable solutions.
- Avoid premature threats: The Code discourages employers from raising the possibility of dismissal too early or threatening it without genuine cause.
The DBT highlights the potential downsides of fire and re-hire practices, including:
- Legal risks: Employees may challenge the practice in an employment tribunal.
- Reputational damage: This tactic can hurt the employer’s image.
- Employee harm: Firing and re-hiring can negatively impact employees’ morale and wellbeing.
- Strained relationships: This practice can damage trust and lead to conflict within the company.
By following this new Code, employers can ensure they are acting fairly and legally while protecting their relationships with their employees.
For employers requiring further guidance or assistance with HR, Health & Safety, Employment Law or eLearning, Supportis are here to help. Contact us today for a free consultation at [email protected] or on 0161 603 2156.
