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Dismissal Employment Law Employment Rights Act 2025 HR Lousha Reynolds Recruitment Redundancy

Fire & Rehire: Government clarifies new restrictions on contract changes

The UK Government has provided further detail on how its upcoming fire and rehire reforms will operate, giving employers greater clarity on which contractual changes will be subject to the strongest legal protections.

Alongside confirming the treatment of expenses, benefits and shift patterns, the Government has also announced that the new fire and rehire provisions under the Employment Rights Act 2025 will now come into force in March 2027, rather than in January 2027 as expected.


What are the new fire and rehire rules?

The Employment Rights Act 2025 introduces significant restrictions on the use of dismissal and re-engagement, commonly known as “fire and rehire”.

Under the new framework, it will be automatically unfair to dismiss an employee in order to impose certain protected contractual changes, known as restricted variations, unless a very limited exemption applies for employers facing serious financial difficulties. The restricted variations include:

  • reductions to pay,
  • changes to total hours,
  • reductions to leave entitlements,
  • changes to pensions,
  • changes to specified shift pattens.

It will also be automatically unfair to replace an employee with a non-employee doing substantially the same role. There will also be additional procedural hurdles to jump through for a dismissal for making an unrestricted variation to be held to be fair.

The Government is now consulting on an updated Code of Practice on Dismissal and Re-engagement, which will help employers understand their responsibilities when seeking to make contractual changes. This will run until 17 December 2026.


Response to Closed Consultation

On 22 October 2026, the government published its response to the consultation on how expenses, benefits in kind, and shift patterns should be treated under the new “fire and rehire” regime.

Expenses and benefits

The recently published consultation response has confirmed that most expenses and benefits in kind will not be a restricted variation, as the Government recognised that allowing employers to make some adjustments, where necessary and subject to appropriate consultation, may help to avoid redundancies and support long-term business viability. However, there are three important exceptions, which will fall within the restricted variation rules:

  • Travel expenses, including mileage allowances.
  • Accommodation expenses incurred through work.
  • Long-term accommodation provided as a benefit in kind.

Where these entitlements form part of an employee’s contract, dismissal and re-engagement will be automatically unfair.

Share schemes excluded

The Government has also confirmed that employee share schemes will sit outside the restricted variation framework. This means organisations will retain more flexibility when making changes to share-based reward arrangements.

Shift pattern changes face greater protection

The Government has also clarified which shift pattern changes will be treated as restricted variations. A protected change will arise where an employee is required to:

  • Move from day work to night work, or vice versa.
  • Move from weekday working to weekend working, or vice versa.

For these purposes, night work will be defined as work carried out between 11pm and 6am. The rationale is that these changes can have a significant impact on employees’ caring responsibilities, family commitments and overall wellbeing.

By contrast, smaller changes, such as moving a shift by a few hours without crossing day/night or weekday/weekend boundaries, and changes to availability windows (where the contract sets out a range of hours within which the employee may be scheduled to work) will not be restricted variations.

Contractual status matters

Importantly, changes will only be a restricted variation where the entitlement is contractual.

If a benefit is provided through a non-contractual policy, or where a valid contractual variation clause allows changes, employers may still be able to amend arrangements without triggering the restricted variation provisions.

For many employers, this highlights the importance of reviewing contracts, policies and benefit documentation before the new rules take effect.

Fair process will remain essential, even when the change is not automatically restricted

If an employee is dismissed and re-engaged to impose a contractual change which is not a restricted variation, the dismissal will not be automatically unfair. However, in addition to judging fairness by the usual unfair dismissal tests, the Act requires tribunals to take account of the reason for the variation, any individual or collective consultation and anything that the employee was offered in return for the change.

The revised Code of Practice will also still apply (even to non-restricted changes), and it is expected to place a greater emphasis on meaningful consultation and employee engagement before changes are implemented.

Employers should also note that failure to follow the Code could lead to compensation awards being increased by up to 25%.


A delayed timeline, but not more time to ignore it

The Government has confirmed that the reforms will now take effect in March 2027, rather than January 2027 as previously anticipated.

Interestingly, the existing Code of Practice is expected to be withdrawn in March 2027, while the replacement Code is not expected to come into force until Summer 2027. This could create a temporary gap in formal guidance, making preparation even more important.

Regulations specifying the restricted variations (including changes to shift patterns) are expected to be published during Autumn 2026, so we will have these prior to the changes taking effect in March.


What should employers be doing now?

Although implementation is still some months away, employers should use this period to prepare by:

  • Considering whether you need to make any changes before the new regime comes into force. This should still be done with caution, but it is likely to be easier now than in March 2027, so it is still worth doing it sooner rather than later.
  • Reviewing employment contracts and variation clauses. Variation clauses are heavily restricted by case law, but it is still advisable to ensure that flexibility clauses are drafted as widely and effectively as possible.
  • Auditing benefits and expenses that have contractual status.
  • Assessing shift pattern provisions and scheduling arrangements.
  • Strengthening consultation processes and focusing on other methods to effect change.
  • Incentivising employees will become more important.
  • Training HR teams and managers on the incoming changes.

How Refreshing Law can help

While the latest announcements provide welcome clarity, they also increase the importance of robust contracts, careful planning, and meaningful employee consultation.

Refreshing Law can help employers review their existing arrangements, assess areas of risk, and prepare for the new regime well before the March 2027 implementation date.


CONTACT US

We’re here to help with any questions or concerns you may have. Whether you need expert advice or would like an initial conversation about our services, pricing, or the options available, please don’t hesitate to get in touch. At Refreshing Law, what sets us apart from other law firms is that you’ll get to speak to an experienced employment lawyer right from the very first call.

02920 599 993

07737 055 584

lreynolds@refreshinglawltd.co.uk

Lousha Reynolds
Refreshing Law

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Disability Discrimination Law Diversity Employment Law Equality Act 2010 Lousha Reynolds Neurodiversity Recruitment

Thinking Differently: Why neurodiversity is a workplace superpower

With it being Neurodiversity Celebration Week (16th–20th March), we felt that it was time to move beyond awareness and start talking more about action.

In the UK, it’s estimated that around 1 in 7 people are neurodivergent. This includes ADHD, Autism, Dyslexia, Dyspraxia, and Tourette’s, among others. For too long, recruitment processes and office environments have been designed around the “typical” brain. Often filtering out some of the most creative, analytical, and dedicated talent in the workforce.

From a British employment law perspective, supporting different ways of thinking is not only the right thing to do, but is also a legal requirement. To help business leaders and HR professionals, we’ve focused in on a few things to help better recognise and support neurodiversity at work.


Under the Equality Act 2010, many neurodivergent conditions meet the legal definition of a disability, where that condition has a substantial, adverse impact on the individual’s ability to carry out their normal daily activities. In such cases, this means that employees have a right to protection from discrimination, harassment, and victimisation.

Crucially, employers have a legal duty to make reasonable adjustments. This duty is “proactive,” meaning you shouldn’t wait for an employee to reach a breaking point before offering support. By fostering an environment where adjustments are normalised, you stay ahead of legal risks and, more importantly, help your team thrive.


2. Redefining “reasonable adjustments”

Support doesn’t always mean expensive equipment. Often, the most impactful changes cost nothing but a shift in mindset. Effective adjustments often include:

  • Environmental tweaks: Providing noise-cancelling headphones, adjustable lighting, or quiet zones for deep focus.
  • Communication shifts: Giving instructions in writing rather than just verbally or allowing for camera-off meetings to reduce sensory overload.
  • Flexibility: Allowing for flexible start and end times to avoid the sensory stress of peak-time commutes.

3. Rethinking recruitment

The traditional hour-long, face-to-face interview is often a test of social performance rather than job competency. To support different ways of thinking, we can look at:

  • Skills-based assessments: Letting candidates demonstrate what they can do rather than just what they can say.
  • Clear job descriptions: Removing jargon and fluff (like “must be a great multitasker”) if it isn’t essential to the role.

4. Moving from “culture fit” to “culture enhancement”

In corporate culture, we often talk about culture fit. However, this can inadvertently lead to mini-me hiring, where everyone thinks and acts the same way. 

To truly celebrate neurodiversity, we should look to add to our work culture. A neurodivergent employee might approach a problem from an angle no one else has considered. They might spot patterns others miss or bring a level of hyper-focus that drives a project to completion. Different ways of thinking are a competitive advantage.


How to get involved this Neurodiversity Celebration Week

This week is a fantastic opportunity to kickstart the conversation. You can:

  • Educate: Host a lunch-and-learn or share resources from the Neurodiversity Celebration Week website.
  • Listen: Create a safe space for employees to share their experiences (if they wish) and what support looks like for them.
  • Audit: Review your internal policies, from HR handbooks to your physical office layout, to see if they are inclusive of all brain types.

Neurodiversity isn’t something to be fixed or managed. It’s something to be celebrated. When we design a world that works for neurodivergent people, we inadvertently create a better, more flexible, and more productive workplace for everyone.


CONTACT US

We’re here to help with any questions or concerns you may have. Whether you need expert advice or would like an initial conversation about our services, pricing, or the options available, please don’t hesitate to get in touch. At Refreshing Law, what sets us apart from other law firms is that you’ll get to speak to an experienced employment lawyer right from the very first call.

02920 599 993

07737 055 584

lreynolds@refreshinglawltd.co.uk

Lousha Reynolds
Refreshing Law

Categories
Anna Denton-Jones Employment Law Performance Management Recruitment Video

Video | Lesson learned

Our latest video is available to view on the Refreshing Law YouTube channel – please click here to watch the video where Anna discusses a recent case which caught Anna’s eye and involved a large amount of money being awarded. It seems to be a classic case of somebody being promoted out of their comfort zone, how they were managed and the lessons learned from the case. Anna discusses the importance of having a job description and clear expectations of what the employer expects the employee to be achieving.

Anna Denton-Jones
Refreshing Law

 

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Anna Denton-Jones Confidentiality Disclosure Employment Law Employment Rights Act 1996 Equality Act 2010 Recruitment Rehabilitation of Offenders Act 1974 Right to Work

Reform to the Rehabilitation of Offenders Act 1974

On 28 October 2023, the 1974 legislation was amended by the Crime Sentencing and Courts Act 2022 and accompanying Regulations.

In the past, some offenders were required to disclose their sentences for the rest of their lives. Now, custodial sentences of 4 years or less and of more than 4 years for some less serious crimes, will be spent “after a period of rehabilitation” of up to 7 years after the sentence has been served, provided that no further offence is committed in that period.

PenaltyPrevious Rehabilitation PeriodNew Rehabilitation Period
Community Order1 year beginning with the last day on which the order had effectNow it is the last day on which the order had effect
Custody of 6 months or less 2 years 
Custody up to 1 year 1 year
Custody of 6  months up to 30 months4 years 
Custody of more than 1 year up to 4 years 4 years
Custody of more than 30 months up to 4 years7 years 
Custodial sentences of more than four yearsNever spent7 years
Convictions for serious sexual, violent or terrorist offencesNever spentNever spent

Stricter disclosure rules continue to apply to jobs that involve working with vulnerable people.

The time frames that I have detailed are in relation to offenders who are over the age of 18. Slightly lower periods apply if the offender was under 18 at the time of conviction.

The new time periods are extended in the event of re-offending during the declaration period. A new conviction attracts its own disclosure period and the previous conviction and the new one need to be declared until the end of the original conviction’s active period or if later, the end of the new disclosure period applied to the more recent conviction.

Anna Denton-Jones
Refreshing Law

 

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Anna Denton-Jones Disability Discrimination Law Diversity Duty of Care Employment Law Employment Rights Act 1996 Equality Act 2010 Offer of Employment Reasonable Adjustments Recruitment

Employers making reasonable adjustments in recruitment

An applicant for a job who had dyspraxia asked to make an oral job application instead of filling the online form that the employer required. The employer emailed him with repeated requests asking him to explain what his difficulty was with the online process. The individual had difficulty with written communication, indeed that was the reason behind his request in the first place, so he also struggled to deal with these emails. The employer ought to have realised this as they knew about the dyspraxia. The Tribunal ruled that a reasonable employer would have phoned the applicant in order to understand their situation more fully.

A factual quirk of this case is that the applicant was seeking to return to the same team, with the job applications being judged by the same line manager who had dismissed him 8 months previously (failed probation). Understandably, that may have been behind the employer’s reluctance to engage with the individual but what you don’t get to know is to what extent they knew about the dyspraxia during the probationary period and what reasonable adjustments were made at that stage to assist the individual in order to level the playing field and put them into a position where they might have been able to pass the probationary period.

This case illustrates the importance of making reasonable adjustments not only for your own employees such as probationers but for all job applicants. It also illustrates how sometimes the reasonable adjustment is something very cheap and easy to do (a phone call instead of an email) and how as soon as the employer has knowledge there is a disability they should be making adjustments not waiting for the employee to ask.

Anna Denton-Jones
Refreshing Law

 

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Anna Denton-Jones Employment Contract Employment Law Immigration Recruitment Right to Work

Reporting duties — Sponsored workers

More and more organisations are sponsoring employees from an immigration perspective, which means those that are working in HR are having to be more familiar with the duties that they have to report to the Home Office in respect of the staff. This means that the issue of immigration isn’t just something that we deal with on recruitment, it means that throughout the life cycle of the employment relationship, we need to be thinking, in any situation, about the sponsorship implications.

Delays to the commencement of work is something that will have to be notified – the reason for the delay. Illness, bereavement and travel disruption will all be legitimate reasons, as will working out notice with a previous employer but essentially, the Home Office want to know if there is any delay. There is a sensible reason for this (making sure the person does come here and start work and does not abscond).

Absences from work, whether that is for maternity or paternity leave, sick leave or strike action, is another notifiable event.

Any changes made to the role, which will include promotion, changing job title or reduction in salary, is something that needs to be reported. This will cover formal promotions but it can also cover less formal changes in core duties, so line management need to be aware that they can’t just make changes without there being implications.

A change of work location to a different site or working from a customer’s premises and working remotely from home on a permanent or full-time basis will all be things that need to be notified, which is another reason why employees should not be given carte blanche to work from anywhere and there are sponsorship angles to your hybrid policies.

You also have reporting obligations if there is any ending to the relationship or the employee is absent without leave for 4 weeks in total during a calendar year.

These changes have to be notified within 10 days so you don’t have a great deal of time to act.

Anna Denton-Jones
Refreshing Law

 

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Anna Denton-Jones Communication Employment Contract Employment Law HR Offer of Employment Recruitment Video

Video | Offers vs contracts

Our latest video is available to view on the Refreshing Law YouTube channel — please click here to watch Anna discussing a case she read about recently which relates to an issue that she does see cropping up from time to time around what has been offered at interview and in the initial offer letter versus what is in the contractual documentation later on.

Anna Denton-Jones
Refreshing Law

 

Categories
Anna Denton-Jones Employment Contract Employment Law Fraud HR Offer of Employment Recruitment

The implications of falsehoods in CVs

A Court decision caught my eye when I was reading the legal news. Firstly, the case is interesting because it went all the way to the highest court in the land, the Supreme Court. Secondly, the Supreme Court overturned the decision of the Court of Appeal. Thirdly, the former employee had been ordered to pay back £97,000 having falsely claimed, in a job application, that he held qualifications and relevant work experience that he did not in fact have.

The case involved somebody called Jon Andrewes who had worked as the Chief Executive of St Margaret’s Hospice in Taunton. He claimed he had a university degree, relevant work experience and even a PhD from Plymouth University, insisting on being called Dr.

There was nothing wrong with his performance in the job, indeed the fact that he worked from 2004 to 2015 and was regularly appraised as either a strong performer or outstanding performer shows that he had not aroused suspicion at an early stage. He had also used similar lies to be appointed to roles as a Director and then Chair of the Torbay NHS Care Trust and as Chair of the Royal Cornwall NHS Hospital Trust.

At some point he was obviously caught out and the whole deck of cards came crashing down.

In 2017 he pleaded guilty to obtaining pecuniary advance by deception and two counts of fraud and was sentenced to 2 years imprisonment. The Proceeds of Crime Act of 2002 sets out a confiscation regime whereby criminals are relieved of their ill-gotten gains. In this case, the Crown were seeking an order that his entire earnings during the period of employment under false pretences should be confiscated. This would have been £643,000 (net earnings).

The Court of Appeal had held that it would be disproportionate to expect him to pay something back.

The Supreme Court sought a middle way and ordered he pay £97,000. There was clearly a feeling that to deprive a person of their entire earnings when the employee had apparently done a good job, would be a step too far but they also declined to agree with the employee’s submission that a ‘take nothing’ approach was appropriate. Despite the fact that he had done a good job, the Hospice and two Trusts had sought a person of honesty and integrity and would have chosen another candidate if they had known about the deception.

In carving this middle route, the Supreme Court was clearly trying to represent the difference between the earnings made as a result of the CV fraud and a lower amount of earnings that the defendant would have made had they not committed the fraud.

The same principles will apply whatever the seniority of the employee.

One of the key issues arising in the case is what background checks were done to verify qualifications and information given on the CV. Just because somebody is in a very senior position, all the status doesn’t mean we should not subject them to checks that we might make for more lowly employees. I am not sure how the deception was identified in the end but it does seem that at least 3 HR Departments have some egg on their faces?

Anna Denton-Jones
Refreshing Law

Categories
Agency Workers Anna Denton-Jones Case Law Employment Contract Employment Law Employment Rights Act 1996 Recruitment Redundancy Settlement Agreements

The P&O situation

Whilst many will have looked at the behaviour of P&O and criticised them and they are undoubtedly at the extreme end of the spectrum, it has caused me to reflect on the extent to which all organisations from time to time “take a view” about legal risk and to some extent, price that into the decision-making process. I defy anyone in HR to say that they have never done this.

What I think the reaction demonstrates is how far we are moving forward and that ESG is becoming mainstream, with the debate and the discussion about P&O showing that organisations by and large ‘get’ the idea that it’s more than just about legal compliance but treating people fairly and with dignity as well as ensuring the right image for the organisation, in terms of its values is as important, given what can happen with social media.

The Government has clearly been on the backfoot — literally in the days leading up to P&O Friday, following a private members bill, attempting to tackle so called fire and re-hire practices, the Minister stood up in parliament and confirmed that the government had no intention of making any changes in this arena. Fast-forward a couple of weeks and now hasty announcements around a number of steps that are going to be taken in the maritime area to ensure National Minimum Wage etc.

The relevant issue for everyone is in relation to what they have said about a new statutory code on ‘fire and re-hire’ tactics which will be produced. It sounds as though this will be putting what Acas already advise onto a statutory footing, in the same way as we used to with the Disciplinary and Grievance Procedures. We are already used to Tribunals and Courts taking the Code into account when considering cases of unfair dismissal and them having the power to uplift the award that is made to any successful employee’s compensation by up to 25% where there has been an unreasonable failure to follow that Code. That is the model that is going to apply here.

At this stage we don’t have the actual Code but I would imagine that it will be following the guidance that is already there to consult with staff, taking into account the background legal position on this issue. Indeed the 11th November 2021 advice published by Acas suggests employers should fully consult their workforces and make every effort to reach agreement on any contract changes, noting that fire and re-hire is an extreme step that can damage staff morale, trust, productivity and working relations. So in effect this is just giving the Acas guidance statutory force. Currently there has been no confirmation of when exactly this will happen.

On another note it looks like the insolvency service has been tasked with considering the circumstances around the CEO of P&O’s failure to lodge the HR1 form which is a criminal offence and the responsible statutory director can be fined for this. I imagine that there is a certain amount of political pressure to ‘make an example’. I know a few years ago I looked into how many times this had actually been done and the evidence base was really small, to the point of being miniscule. However, there were directors who made redundancies during furlough who were prosecuted so there is a precedent. Even if an employer decides to do what P&O did and commence with statutory consultation because they would essentially be buying out that right by making ex gratia payments under a settlement agreement, it would still be important for the HR1 form to be filed as a protection for the directors involved.

Anna Denton-Jones
Refreshing Law