Union Leader Urges Rethink on ‘Fire and Rehire’ Ban

The UK’s proposed reforms to ban “fire and rehire” practices are facing renewed scrutiny, with union leaders calling for a more considered approach to the policy’s design. Mike Clancy, general secretary of the Prospect union, has urged the government to revisit the current draft of the legislation, warning that its wording may unintentionally restrict normal and necessary employment practices. While supporting the bill’s aim to end exploitative tactics, Clancy stressed that the law must also leave space for employers and employees to adapt to change in a fair and constructive way.

“Fire and rehire” came under the spotlight following the P&O Ferries case in 2022, when nearly 800 workers were dismissed and immediately replaced under new terms. The incident prompted widespread criticism and helped shape Labour’s pledge to introduce stronger protections for workers. The proposed Employment Rights Bill would ban the use of dismissal and re-engagement as a negotiation tool, while also introducing broader changes such as outlawing zero-hour contracts and extending unfair dismissal rights from the first day of employment.

However, both unions and employers have raised concerns about how the bill might function in practice. Clancy cautioned that, as currently written, the legislation could create a blanket ban that makes it difficult for employers to implement even routine contractual changes, such as altering shift patterns or relocating staff, without facing legal challenges. Business groups have echoed these concerns, highlighting the risk of uncertainty for organisations trying to manage operational needs while remaining compliant.

Business Secretary Jonathan Reynolds has acknowledged that further discussion is needed and confirmed that the government will continue to consult with stakeholders as the bill progresses. With the legislation expected to return to Parliament in the autumn, there is still time for revisions that could address these practical concerns.

The debate reflects a broader balancing act in employment law: how to protect workers from mistreatment while maintaining flexibility in a modern workplace. As the UK seeks to reshape its labor protections, union voices like Clancy’s are pushing for reforms that are not only principled but also workable in everyday employment settings.

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