Recent changes introduced by the Employment Rights Act 2025 mean employers must take a far more cautious approach to the once-common practice of “fire and rehire.” Historically, this method was used to enforce contractual changes when employees resisted new terms. However, the updated legislation significantly restricts this approach, meaning that dismissing employees and offering re-engagement on revised contracts could now expose organisations to serious legal challenges, including claims of unfair dismissal.
As a result, employers must prioritise meaningful consultation and open dialogue. It’s no longer enough to simply present changes; businesses must demonstrate that they have genuinely considered employee concerns, explored alternatives, and reached decisions in a fair and balanced way. This shift places greater emphasis on transparency, documentation, and mutual understanding throughout the process.
For many organisations, especially those without in-house HR expertise, navigating these changes can feel complex and uncertain. Getting it wrong can lead not only to legal risk but also to damaged employee trust and morale. That’s why seeking expert guidance is increasingly important.
Leonie Goodman HR provides tailored, practical support to help employers confidently manage contractual changes while remaining compliant with evolving employment law. With a focus on clear strategy and positive employee relations, Leonie Goodman HR ensures businesses can adapt responsibly and effectively.