On 18 July 2024, the government published the statutory Code of Practice on Dismissal and Re-engagement (Code). The Code aims to provide practical guidance to employers, employees and trade unions, to help minimise and resolve conflict around dismissal and re-engagement (commonly referred to as “fire and re-hire”).
The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order, contains the power for tribunals to apply an uplift or reduction in compensation in collective consultation claims where a party failed to follow the Code. This amendment takes effect on 20 January 2025.
From that date, employers must account for additional financial risks in redundancy scenarios. If a breach of the statutory Code of Practice on Dismissal and Re-engagement is deemed likely, an uplift of up to 25% could apply—significantly increasing the potential liability beyond the previously assumed cap of 90 days’ gross pay per employee.
