419 words, 2 minutes read time.
The exploitative practice of fire and rehire, long criticised for undermining workers’ rights and bargaining power, is set to become a relic of the past. With Clause 26 of the Employment Rights Bill introducing Section 104I to the Employment Rights Act 1996, employees will finally have the protection they deserve. This landmark change ensures that refusing an unfair contractual change is no longer a gamble—it’s an automatic right.
A Long-Awaited Shield for Workers
Under the new law, it is now automatically unfair for an employer to dismiss an employee simply because they refuse to accept changes to their contractual terms. For years, workers have faced the devastating choice between losing their jobs or accepting inferior terms. Now, such dismissals will no longer hang over employees like a sword of Damocles. From commission cuts to enforced rota changes, workers can stand their ground without fear of being pushed out of their jobs.
One Exception, But a High Bar
The only exception to this protection is if a business is genuinely facing collapse—a defence requiring extensive and documented evidence of financial distress. Even then, employers must prove they consulted workers, explored every alternative, and treated employees fairly under existing dismissal principles. This rigorous safeguard ensures the exception cannot be exploited to erode workers’ rights.
Empowering Collective Action
For trade unions, this legal breakthrough is a cause for celebration and renewed activism. The fire-and-rehire tactic has often been used to bypass collective bargaining and impose terms without proper negotiation. The new legislation reinforces the importance of unions as a voice for workers, making consultation and negotiation essential for any contractual changes. The balance of power is shifting, creating opportunities for workers to demand fair treatment and respectful dialogue from their employers.
Strengthening Solidarity
This change not only protects individual workers but also fosters collective strength. Employers can no longer wield dismissal as a threat to break union solidarity or undermine collective agreements. Workers, with the backing of their unions, can negotiate from a position of greater confidence, knowing the law is on their side.
A Turning Point for Workers’ Rights
Clause 26 represents a historic victory in the fight for fair employment practices. It signals an end to the abuse of fire and rehire and a step towards a workplace culture that values fairness, respect, and shared prosperity. This legislation doesn’t just protect workers—it uplifts them. It’s a reminder that when workers and unions stand together, change is not only possible but inevitable.
By Maria Camara