"Fire and rehire" is a practice where an employer terminates a contract of employment and re-engages the member of staff with contractual changes.

This approach has proved rather popular in recent times, not least due to socio-economic factors such as the 'gig economy' and Covid.

But whether to introduce a "fire and rehire" policy is a contentious subject for many businesses in current times.  

Last month, the High Court granted an injunction against Tesco, preventing the multi-billion pound retailer from firing members of staff and withdrawing a ‘guaranteed’ financial benefit when re-engaging them under new contracts of employment.

The practice of firing and re-hiring has been widely criticised, with concerns raised in Parliament last year.

Any employer thinking about using fire and rehire practices would be wise to consider the ACAS guidance on how to make changes to employment contracts, and seeking practical legal advice on the terms of their employment contracts before proceeding.