Fire and rehire means dismissing an employee and offering re-employment on changed terms. The Employment Rights Act 2025 introduces stronger protection against specified practices of this kind. The latest government timetable schedules implementation for January 2027.
Checked on 3 October 2026. This article concerns Great Britain: England, Scotland and Wales. January 2027 is the official timetable date; the government says future dates remain subject to parliamentary processes.
What has been confirmed?
The reform is included in the enacted Employment Rights Act 2025. The timetable updated on 25 September 2026 places fire and rehire protections in January 2027. This is the official implementation plan, which should be checked alongside commencement legislation before publication.
The new rules are not described here as already applying in October 2026. Existing law and the Code of Practice on Dismissal and Re-engagement remain relevant.
Which contractual changes receive stronger protection?
The reform distinguishes restricted variations, covering specified core changes, from other contractual changes. The government factsheet lists reductions in pay, changes to total hours, reduced leave entitlement and pension changes among them. Dismissal to impose such changes will generally be automatically unfair, subject to a narrow financial-difficulties exemption. Read the official factsheet.
The detailed treatment of specified shift-pattern changes and certain expenses and benefits has been consulted on. Do not assume every rota change receives identical protection. Check the final secondary legislation before publication.
An example at work
An employer proposes a cut in basic pay. An employee refuses and is told: “Your contract will end, but you can return at the lower rate.” That is an example requiring assessment of fire and rehire and the new protection.
A proposal to change duties or workplace location is a different scenario. Not every rejected proposal makes a later dismissal automatically unfair. The type of change, reason for dismissal and process all need consideration. The House of Commons Library briefing explains the distinction.
The financial exemption has conditions
A general desire to cut costs is not a complete account of the exemption. The factsheet describes evidence of financial difficulties affecting viability, changes aimed at mitigating them and no reasonable way to avoid those changes. Meeting the exemption does not itself establish that a dismissal was fair.
Application depends on the circumstances, with relevant differences for public employers and local authorities. This article cannot determine the outcome of an individual employer’s decision.
What about replacing employees?
The reform also covers specified fire-and-replace cases: dismissing employees to replace them with non-employees doing substantially the same work. This should not be equated with every restructuring or use of agency staff. The reason and actual need for the work matter.
What to do when new terms are proposed
- Ask for the changes, reasons and response deadline in writing.
- Compare them with your current contract, payslips and agreements.
- Keep correspondence and consultation notes.
- Ask about alternatives and trade union representation.
- Get advice before signing an agreement or resigning.
Acas explains contract changes and offers help with disputes. Do not wait for 2027 if a dispute is already under way: claim deadlines depend on the event and applicable rules. In Northern Ireland, consult the Labour Relations Agency and the relevant NI law.
Check the effect on pay and leave
Before discussing a proposal, work out its practical consequences. Our take-home pay calculator and annual leave guide can help. A financial comparison helps assess an offer but does not determine its legality.
Sources and publication checks
- GOV.UK — timetable updated 25 September 2026
- GOV.UK — Fire and Rehire factsheet
- House of Commons Library — fire and rehire
- GOV.UK — current Code of Practice
- Acas — employment contract changes
Before publication, check commencement regulations, the final restricted-variation rules and the January timetable. Until then, the article should remain a preview of the reform.