Tag: Fire and Rehire

UK Government cracks down on controversial ‘fire and rehire’ tactics

  • UK Government acts against controversial dismissal tactics through a new statutory Code of Practice.
  • Employment tribunals will have the power to apply an uplift of up to 25 percent of an employee’s compensation if an employer unreasonably fails to comply with the code.
  • Code protects workers’ rights whilst respecting business flexibility.

Action against unscrupulous employers to tackle the use of controversial ‘fire and rehire’ practices have been rolled out by the Westminster Government.

Dismissal and re-engagement, also known as ‘fire and rehire’, refers to when an employer fires an employee and offers them a new contract on new, often less favourable terms.

The Government has been clear that it firmly opposes this practice being used as a negotiating tactic. Today, a new statutory Code of Practice has been published making clear how employers must behave in this area. 

This new Code of Practice shows the Government is going a step further to protect workers across the country. This will help to preserve security and opportunity for those in work, as part of our plan to grow the economy.

Business Minister Kevin Hollinrake said: “Our new Code will crack down on employers mistreating employees and sets out how they should behave when changing an employee’s contract.

“This announcement shows we are taking action to tackle fire and re-hire practices by balancing protections for workers with business flexibility”.

In future the courts, and employment tribunals, will take the Code into account when considering relevant cases. This will include on unfair dismissal claims where the employer should have followed the Code.

https://twitter.com/i/status/1759563650212200518

Employment tribunals will have the power to apply an uplift of up to 25 percent of an employee’s compensation if an employer unreasonably fails to comply with the Code.

The new Code clarifies how employers should behave when seeking to change employees’ terms and conditions, aiming to ensure employees are properly consulted and treated fairly.

Employers will now also need to explore alternatives to dismissal and re-engagement and have meaningful discussions with employees or trade unions to reach an agreed outcome.

The Code makes it clear to employers that they must not use threats of dismissal to pressurise employees into accepting new terms. They should also not raise the prospect of dismissal unreasonably early or threaten dismissal where it is not envisaged.

Acas Chief Executive Susan Clews said: “Fire and rehire is an extreme step that can seriously damage working relations and has significant legal risks for organisations. Employers should focus on maintaining good employment relations to reach agreement with staff if they are thinking about making changes to their contracts.

“Acas offers impartial advice on employment rights and obligations, and has expertise in helping parties to maintain good industrial relations and resolving disputes where they arise.

“The Government’s new draft Code is clear that employers should contact Acas for advice before they raise the prospect of fire and rehire with employees.”

Principal Policy Advisor at Institute of Directors, Alexandra Hall-Chen said: “The publication of this Code of Practice provides employers with welcome clarity and practical guidance.

“The Code rightly places good industrial relations at its core and represents an effective means of balancing worker protections with labour market flexibility.”

Head of Public Policy at CIPD, Ben Willmott said: “The Code promotes good practice, making clear employers should always seek to agree any changes to terms and conditions with employees and that ‘fire and rehire’ should only be used as an absolute last resort.

“It highlights the importance of early and meaningful consultation with employees to maximise the chances of finding alternative solutions which can lead to agreement over proposed changes.

“It also emphasises that Acas has a key role to play and should be contacted by an employer for advice before it raises the prospect of fire and rehire with the workforce.”

The Government previously asked Acas to produce guidance for employers on fire and rehire practices, which was published in 2021.

The TUC says the guidance does not go far enough: ‘Government’s code of practice on fire and rehire lacks bite.

“It will not deter bad employers like P&O from treating staff like disposable labour. We need far more robust legislation to protect people at work.

“Labour’s New Deal for Working People would be the biggest upgrade in workers’ rights in a generation and end fire and rehire.”

P&O Ferries illegal sackings scandal: Sign the Petition!

Sign the petition to call for UK government to stop DP World and P&O Ferries replacing 800 sacked workers with cheaper labour.

What’s the issue?

Last week, 800 workers at P&O Ferries were sacked via Zoom call.

This shameful act is devastating for these workers, their families and communities. Workers must be reinstated immediately – and P&O Ferries must face serious consequences.

This is a national scandal – it can’t ever be allowed to happen again. This must be a turning point for workers’ rights in the UK.

The government can stop this,  but they will not act unless thousands of us speak up. If callous acts like this are allowed at P&O, they can happen anywhere.

We need your help!

Please support P&O workers by signing the petition and make sure no worker can be treated like this again.

Sign petition

P&O Ferries staff redundancies: ‘pure blackmail’ and the ‘bullying truth’

Letters to and from Peter Hebblethwaite, CEO of P&O Ferries, regarding the circumstances by which staff were made redundant on 17 March 2022.

UK Business Secretary Kwasi Kwarteng and Labour Markets Minister Paul Scully wrote to the CEO of P&O Ferries on 18 March 2022 requesting details of the circumstances by which staff were made redundant on 17 March so that government can establish whether any employment or redundancy laws have been broken.

This is the exchange of letters:

Peter Hebblethwaite, CEO of P&O Ferries, responded by letter yesterday:

RMT exposes the ‘bullying truth’ behind P&O staff package

Maritime Union RMT last night slammed what it described as a “disgusting statement” from P&O Ferries trying to justify one of the most shameful acts by any employer in recent history.

Sacked seafarers have been basically told that if they don’t sign up to be gagged by a non-disclosure agreements you not only lose your job you lose money as well. This is from an organisation which has received millions from the taxpayer to support furlough payments and whose parent company DP world paid out vast sums in dividends last year

General Secretary Mick Lynch said: “These are the actions of a bully trying to maximise profits by sacking workers and replacing them with agency staff below the minimum wage.

“The detail of what the company are imposing is not new. The 2.5 weeks is what we have negotiated in the past with P&O.

“The pay in lieu of notice is not compensation, it is just a payment staff are contractually entitled to as there was no notice given.

“The way that the package has been structured is pure blackmail and threats– that if staff do not sign up and give away their jobs and their legal right to take the company to an employment tribunal they will receive a fraction of the amount put to them.

“The actions of P&O demonstrate the weakness of employment law and protections in the UK. P&O have flagrantly breached the law and abandoned any standards of workplace decency. They have ripped away the jobs, careers and pensions of our members and thrown the on the dole with the threat that if they do not sign up and give away their rights they will lose many thousands of pounds in payments.

“This is totally unacceptable and RMT will continue to campaign for our members to be reinstated at P&O and for better employment laws to protect all British workers.‎”

A protest is also being held outside P&O Ferries Cairnryan terminal today.

TUC calls on Clarks shoes CEO to end ‘fire and rehire’ dispute

  • Call comes ahead of protests in Clarks Village today (Saturday)
  • TUC says Johnny Chen should urgently get around the table with union representing striking workers

The TUC has called on the new CEO of Clarks Shoes Johnny Chen to “get around the table” with union leaders and end the dispute over the company’s controversial use of ‘fire and rehire’ tactics.

The TUC says Johnny Chen should meet urgently with the general secretary of Community Roy Rickhuss to come to a fair agreement.

The call comes ahead of protests today (Saturday). Workers currently on strike, their families and their supporters will march through the iconic Clarks Village to protest the usage of fire-and-rehire by Clarks and ask them to reconsider.

Members of Community union – working at Clarks warehouse in Street, Somerset –have been on strike since October 4th after the company threatened to dismiss them and rehire them on worse terms.

TUC General Secretary Frances O’Grady said: “Nobody wants to see this dispute drag on – least of all Clarks’ workers.

“We urge the new CEO to urgently get around the table with the general secretary of Community and come to a fair agreement.”

TUC Deputy General Secretary Paul Nowak, who will join the march and protest in Clarks Village today, said: “Generations of families have worked for and contributed to the success of Clarks shoes. All they want is for is staff to be treated with dignity at work.

“A company with Clarks’ proud tradition and history should not be using ‘fire and rehire’ tactics to drive down pay and conditions.”

Community General Secretary Roy Rickhuss said: “Over the past month, workers at Clarks have been overwhelmed by the outpouring support that people from across the country have given them. Fire-and-rehire is cruel and wrong, and everyone is aware of this. Sadly, this has led to no progress with Clarks and their plans will be continuing.

“Clarks is a staple brand on the British high street, with a history dating back over a century. Their roots in their local community go even deeper. There once was a time where Clarks built schools, libraries and theatres for their workers and their families in Somerset. This is a betrayal of their roots, and everything Clarks once stood for.

“We are protesting on Saturday to send a message to Clarks that we stand strong and we will resist these changes at every turn. We do not want to be on strike, and we do not want to be protesting. We urge Clarks to call off the diminishing of terms and conditions and reconsider this move. We remain ready and waiting for productive discussions on how we can succeed together going forward when they are.”

Acas publishes advice to help employers avoid fire and rehire practices

Workplace expert, Acas, published evidence on the use of fire and rehire practices at work in June.

In response, the Government asked Acas to produce guidance to help employers explore all other options first before considering fire and rehire to change employee contracts.

This new advice has been published today and can help employers maintain good employment relations and reach agreement with staff if they are thinking about making changes to their contracts.

Acas Chief Executive, Susan Clews, said: “Our new advice is clear that fire and rehire is an extreme step that can seriously damage working relations and has significant legal risks for organisations.

“Employers should thoroughly explore all other options first and make every effort to reach agreement with staff on any contract changes.

“Organisations that consult with their workforce in a genuine and meaningful way about proposed changes can help prevent conflict at work and stay within the law.”

Acas advice is that organisations that are considering contract changes should fully consult with all affected staff and their representatives in a genuine and meaningful way.

Effective consultation can help maintain good workplace relations as it allows staff to understand the reasons behind proposed changes and provides them with an opportunity to give their views. This can help to build trust and find a solution that works for everyone.

Tensions can arise if employees feel that they have not had the opportunity to inform decisions around proposals or do not support the changes. This can result in staff feeling less committed and can impact an organisation’s performance.

If both sides are finding it difficult to reach an agreement then Acas advice includes tips on how to:

  • keep discussions constructive;
  • explore alternative options to reach a compromise; and
  • stay focused on trying to reach consensus.  

Acas advises that the practice of fire and rehire is an extreme step that can damage staff morale, productivity, working relations and can also lead to industrial action.

Other risks for employers in using fire and rehire practices can include:

  • making it harder for both sides to reach a negotiated solution if employees feel ‘threatened’ by an employer
  • expensive legal claims from staff who feel that they have been unfairly dismissed or discriminated against;
  • reputational damage, which can make it difficult for an organisation to attract new employees;
  • immediate and long-lasting damage to trust with staff; and
  • losing valued people because they do not accept the offer of a new contract, or staff leaving later due to unhappiness over the change or the way it was made.

Acas’s full advice is available at: http://www.acas.org.uk/changecontract

BME workers bearing the brunt of coronavirus cuts

Black and minority ethnic (BME) workers are three times more likely than white workers to have lost working hours during the pandemic, according to a new TUC poll published on Friday.

The survey – carried out for the TUC by Britain Thinks – found that around 1 in 11 (9%) BME workers had their normal 35-48 hours a week cut back during the Covid-19 pandemic. Only 1 in 33 (3%) white workers said their working hours were reduced.

Nearly 1 in 8 (13%) BME workers told the TUC that their hours were cut without them requesting it in the last 12 months, compared to 1 in 11 (9%) of white workers. And 1 in 4 (25%) BME workers said they were now working between 1-24 hours a week, compared to 1 in 5 (20%) white workers.

The poll also found that:

  • Second jobs: BME workers were nearly twice as likely to say they’d had to take on more than one job in the last 12 months than white workers. Around 1 in 14 (7%) BME workers had more than one job during the past year, compared to just 1 in 25 (4%) white workers.
  • Pressure to go into work: 1 in 5 (20%) BME respondents told the TUC they were worried that if they did not go into their workplace this would impact negatively on their status at work, for example in terms of their job security or their chances of getting a pay rise. Around 1 in 7 (14%) white respondents shared this concern.

Previous TUC analysis revealed that the unemployment rate for BME workers has risen three times as fast as the unemployment rate for white workers during the pandemic.

The BME unemployment rate shot up from 6.3% to 8.9% between the first quarter of 2020 and the first quarter of 2021, an increase of 41%. Over the same period the unemployment rate for white workers rose from 3.6% to 4.1%, an increase of 14%.

Around 1 in 11 (8.9%) BME workers are now unemployed, compared to 1 in 25 (4.1%) of white workers.

TUC General Secretary Frances O’Grady said: “Covid-19 has shone a spotlight on the structural discrimination that has been hidden in our jobs market for too long.

“BME workers have shouldered the burden of the pandemic. They’ve faced the double whammy of being more likely to be working in industries that have been hit hardest by unemployment. And it’s now clear they’ve also have been more likely than white workers to lose hours – and therefore pay. Too many BME workers are having to take on second jobs now just to make ends meet.

“We know that BME workers are more likely to be in low-paid, insecure work with less employment rights. Through the pandemic, many have paid for this discrimination by losing hours, jobs and wages. Tragically, many more have paid with their lives.

“Enough is enough. Everyone deserves a decent job, with decent pay and with decent terms and conditions. Ministers must address this inequality once and for all and challenge the structural discrimination that holds BME workers back at every level of the labour market.”

Chair of the TUC anti-racism task force and NASUWT General Secretary Patrick Roach said: “This latest evidence comes on top of other data showing that Black workers are bearing the brunt of precarious employment, zero-hours contracts and employers using ‘fire and rehire’ to drive down wages.

“With rates of unemployment rising fastest amongst Black workers, we need to see urgent action from the Government to tackle these inequalities and secure a recovery that works for everyone.

“It will also be important that employers consider and are held to account for how their decisions are impacting on Black and White workers.”

The TUC is calling on government to:

  • Introduce mandatory ethnicity pay gap reporting and make employers publish action plans to ensure fair wages for BME workers in the workplace.
  • Ban zero-hours contracts and strengthen the rights of insecure workers – which will have a disproportionate impact on BME workers.
  • Publish all the equality impact assessments related to its response to Covid-19 and be transparent about how it considers BME communities in policy decisions.

Acas insight into Fire and Rehire

The Department for Business, Energy and Industrial Strategy (BEIS) asked Acas to conduct an evidence gathering exercise to learn more about the use of fire and rehire practices.

This was published yesterday and contains views from a range of participants about their experiences on the use of fire and rehire.

Acas Chief Executive, Susan Clews, said: “Our findings provide valuable insight into the use of fire and rehire practices. We gathered a range of views from professional bodies with workplace expertise, including trade unions and employer organisations.

“Some of the participants told us about the business challenges of COVID-19 and how the use of fire and rehire can help reduce redundancies. Others believe that the practice is unacceptable, and that the pandemic has been used as a ‘smokescreen’ to diminish workers’ terms and conditions.

“There was also evidence that fire and rehire practices have been used for many years and predate the pandemic. We will take up the government’s request to produce further guidance that encourages good workplace practices when negotiating changes to staff contracts.”

Read the findings in ‘Dismissal and re-engagement (fire-and-rehire): a fact-finding exercise‘.

Gas Workers Launch Fresh Strikes As British Gas Refuse To Drop ‘Fire And Rehire’

More than 1,000 British Gas workers across Scotland will launch twelve more days of strike action from tomorrow (Friday 12 March), in response to Centrica CEO Chris O’Shea’s refusal to drop his controversial ‘fire and rehire’ policy.

Engineers will walk out from 00.01 hours on Friday 12 March until 21.59 hours on Monday 15 March, again on Friday 19 March to Monday 22 March, and finally on Friday 26 March to Monday 29 March, taking the total number of strike days in the dispute to forty-two.

The latest wave of strikes was confirmed after workers across the UK voted by a resounding majority of four-to-one against proposals tabled through ACAS over the future of their terms and conditions, with Centrica refusing to lift the ‘fire and rehire’ imposition.

After thirty days of previous strikes, more than 250,000 homes across the UK are in a backlog for repairs and 350,000 planned annual service visits have been axed.

GMB Scotland Senior Organiser Hazel Nolan said: “This dispute can end now if Chris O’Shea finally does the right thing by dropping his controversial ‘fire and rehire’ policy.

“It’s shameful that in the grip of the COVID-19 pandemic, Centrica are using this public health crisis to threatened workers with the sack if they don’t accept imposed changes to their livelihoods.

“This is the kind of behaviour you would expect from a cowboy contractor and not the CEO of a great British institution. It’s not modern, it’s Dickensian and there should be no place for this in our country.

“The message is loud and clear: Stop the fire and rehire in British Gas, and let’s return to proper negotiations over the future of this business and its workers.”

Usdaw court victory blocks Tesco ‘fire and rehire’ tactic

Court of Session rules in favour of workers affected

Retail trade union Usdaw yesterday won an interdict in the Court of Session in Edinburgh against Tesco forcing some of the staff at the Livingston distribution centre onto a new contract, which would result in the affected staff losing between £4,000 and £19,000 per year.

The judgement, which applies to the Livingston site only, means that Tesco are legally prohibited from unilaterally withdrawing entitlement to retained pay and/or terminating the contract in order to re-engage the worker on new terms which do not include retained pay.

The ‘fire and rehire’ proposal also affects workers in Litchfield, Daventry clothing and Avonmouth Tesco distribution centres and we will continue to fight for same result for our members at these sites.

Joanne McGuinness, Usdaw National Officer, says: “We are very pleased to have secured this victory for our members who faced a huge cut in wages after Tesco moved to renege on a longstanding collective agreement made in good faith. It is a major victory in the fight against ‘fire and rehire’ tactics, which are now being used by too many businesses.

“The court delivered a temporary prohibition and we are now calling on the company to honour the judgment and withdraw its plans at all sites. We stand ready to seek a permanent interdict for Livingston and a High Court injunction for the other sites to defend this unfair pay cut for hundreds of key workers.

“Tesco can stop this now, by doing the right thing and withdrawing their threat to these longstanding staff, who have worked throughout the pandemic to keep stores stocked with the essential items we all rely on.”

Strike action set for British Gas over ‘Fire and Rehire’ plan

Over 1,000 British Gas workers in Scotland will begin five days of strikes from 00.01 hours this morning (Thursday 7 January) as part of the biggest dispute seen in the sector for over forty years.

In a direct response to the ‘fire and rehire’ plan for British Gas operations laid-out by Centrica Plc Group’s Chief Executive Officer Chris O’Shea, over 10,000 GMB members across the UK four nations will take part in the action.

O’Shea has refused to accept efforts by GMB to negotiate a way forward for the business. Instead, after months of talks, workers have been told to accept the slashing of wages and conditions, or face being sacked.

All British Gas divisions and services, including Service & Repair, Electrical Services, Smart Metering, Installations, and Customer Services will be impacted.

GMB Scotland Senior Organiser for Commercial Services Hazel Nolan, blasted Centrica’s executives for their role in creating their own company crisis and exploiting workers during the COVID-19 pandemic:

“Today is CEO pay day, Chris O’Shea will take home a pre-bonus wage of £775,000, and Centrica have recorded a £901million operating profit for 2019.

“While GMB members in British Gas acted as emergency workers during the COVID19 pandemic, Chris O’Shea & the Senior Millionaires Team of British Gas were busy plotting how to slash workers terms & conditions.

“In the grip of a global pandemic, Chris O’Shea’s anti-worker, ‘fire and rehire’ agenda would set a dangerous precedent for major UK employers, opening the floodgates for widespread attacks on workers’ jobs, pay and conditions. This is not how a country builds back better.

“GMB members are being told they’ll be sacked and then forced to accept new terms and conditions – across the board cuts in wages pensions and leave. Take it or leave it. Centrica are turning a once great British industrial institution into a cowboy contractor.

“We have no choice but to fight-back.”

Centrica says contingency measures are in place.