During the coronavirus pandemic, the TUC has warned that the controversial practice of ‘fire and re-hire’ has become widespread. 

An online survey of 2,231 workers in England and Wales was conducted during November 2020 on respondents who were either in work, on furlough, or recently made redundant. 

It was found that 9 per cent of workers have been told to re-apply for their jobs on worse terms and conditions or face the sack and 18 per cent of those aged 18-24 years say that their working terms - such as pay or hours - have been downgraded since the first lockdown in March.  

Twice the proportion of ethnic minority workers were subjected to ‘fire and hire’ tactics,15 per cent compared to 8 per cent of their white counterparts. In addition, 12 per cent of working-class employees - as against 7 per cent of higher socio-economic groups - were told to re-apply for their jobs under worse terms and conditions.  

The TUC says ‘fire and re-hire’ tactics are being used across a range of businesses.  Of the workers polled, a total of 24 per cent had experienced a downgrading of their terms during the pandemic - including through reduced pay or changes to their hours.

The poll also revealed that 34 per cent of young workers - aged 18-24 years - say their terms at work have deteriorated since the start of the first lockdown and 30 per cent of low-paid workers - those earning up to £15,000 - report the same.  Job security was cited as a worry by 38 per cent of workers.

Frances O’Grady - General Secretary of the TUC - said:

“Everyone deserves to be treated with dignity and respect at work. Forcing people to re-apply for their jobs on worse terms and conditions is plain wrong.   Fire and re-hire tactics have no place in modern Britain and must be outlawed.”  

Ben Willmott - Head of Public Policy at the CIPD - stated:

“Employers must consider all alternatives and have done everything possible to try and reach voluntary agreement and consider whether the proposed changes are completely vital.”

He states that dismissing a worker and then rehiring – forcing them to accept a change to the employment contract, should be an absolute last resort.

Francis O’Grady is calling on the government to fast track a much-delayed employment bill and to “…….abandon any attempt to water down hard-won workers’ rights from the EU.”  

Paul Holcroft - Managing Director of Croner - cautioned that “…. depending on how employers are putting their ‘fire and rehire’ processes in place, employees may have an argument that they have been unfairly dismissed, so the details would need to be looked at carefully”.