Undefined Terms, Defined Protections: Two proposed changes to fire and rehire protections

Policy discussions are underway about how to strengthen protections around fire and rehire. In particular, two proposed changes focus on benefits and expenses, and on shift patterns. The aim is to reduce ambiguity, clarify expectations for employers and employees, and ensure that changes to terms of employment are fair and necessary. Below, we outline the two proposals and their potential implications, and invite views from across the workforce, employers, and representative bodies.

Proposed Change 1: Benefits and expenses during fire and rehire transitions

What is proposed
– Introduce clearer protections to safeguard benefits and expense entitlements when a workforce is dismissed and then rehired under new terms.
– Require that certain benefits (for example, pension arrangements, health or private medical cover, annual leave and other core entitlements) remain in place or be clearly and transparently carried forward during the transition.
– Establish rules around expense reimbursements (such as travel, training, and other job-related costs) to prevent unilateral changes that would otherwise burden employees during the transition.
– Mandate advance notice and meaningful consultation before any change to benefits or expense policies is implemented as part of a fire-and-rehire process.

Why this matters
– Employees face uncertainty when terms change. By clarifying which benefits and expenses must be preserved or clearly transitioned, the policy aims to protect financial security and continuity of work.
– For employers, a predictable framework reduces disputes and helps ensure that redeployments or re-employments occur with clear expectations from the outset.

Potential implications
– Positive: Greater predictability for employees; reduced risk of scorched-earth terminations; a clearer basis for negotiations during transitions.
– Challenging: Additional administrative requirements and potential cost implications for employers, especially where multiple benefit plans or complex expense schemes are involved.
– Questions to consider: Which benefits should be protected in all cases? How should accrued entitlements be treated if there is a gap between dismissal and rehiring? What is a reasonable transition period for re-establishing benefits and expense arrangements?

Proposed Change 2: Shifting patterns of work and the use of fire and rehiring

What is proposed
– Introduce safeguards around changes to shift patterns as part of a fire-and-rehire exercise, with emphasis on necessity, fairness, and proportionality.
– Require robust business reasons for altering shift patterns in the context of a rehire, and place a higher emphasis on exploring alternatives (such as redeployment, voluntary terms, or voluntary changes in hours) before resorting to a fire-and-rehire approach.
– Mandate better employee engagement and collective consultation where shift-pattern changes are proposed, with clear timelines and documentation of the decision-making process.
– Encourage the use of alternatives to minimise disruption to workers’ routines, family life, and income stability.

Why this matters
– Shifting patterns can have a disproportionate effect on workers, particularly those with caring responsibilities, health considerations, or fixed routines.
– The proposal seeks to deter routine use of fire-and-rehire purely for changing hours, while preserving legitimate business flexibility where needed.

Potential implications
– Positive: More predictable work schedules for employees; greater transparency and fairness in decisions about shift changes; reduced potential for abuse of the fire-and-rehire mechanism.
– Challenging: Employers may need to invest in additional planning, consultation, and potential redeployment options; some businesses may face operational constraints if flexible shift arrangements are not feasible.
– Questions to consider: What constitutes a justifiable shift-pattern change? How should redeployment be structured and communicated? What safeguards ensure that consultation is meaningful and timely?

Practical considerations for both changes

– Clarity and consistency: A defined framework should apply consistently across sectors to avoid confusion and ensure parity.
– Transition planning: Employers and employees should plan transitions with clear milestones, documentation, and access to support or advisory services.
– Enforcement and evidence: There should be accessible means to challenge and review decisions, with clear criteria and a transparent audit trail.
– Interaction with collective agreements: How do these changes interact with existing collective agreements, TUPE regulations, or sector-specific mandates? Alignment with these instruments is essential.

We want your views

These proposals are designed to be practical and fair, but they will only work well if they reflect the realities of workplaces across the country. We invite views from employees, employers, trade unions, professional bodies, and other stakeholders.

Key questions you might consider
– Do the proposed protections strike the right balance between employee security and employer flexibility?
– Which benefits and expenses should be explicitly protected, and for how long, during a fire-and-rehire transition?
– How should transitions be managed to minimise disruption to income and wellbeing?
– What would constitute a legitimate justification for shifting shift patterns, and what processes would you expect for consultation?
– Are there practical impediments or costs that the proposals might impose, and how could these be mitigated?

How to share your views
– Provide written feedback via our online consultation portal, with specific references to the two proposals.
– Engage through employer or employee representatives where appropriate.
– Consider submitting case studies or examples to illustrate the impact of current practices and the potential effects of the proposed changes.

Timeline
– Submissions are welcome by the stated deadline. We will publish a summary of responses and next steps, with consideration given to refinements based on stakeholder input.

Closing thoughts

The term undefined in policy discussions can create uncertainty. By defining protections around benefits, expenses, and shift patterns, these proposed changes aim to bring clarity, reduce abuse, and support fair treatment for workers experiencing fire and rehiring scenarios. Your views are essential to shaping a practical, effective framework that works for businesses and employees alike.

If you would like to respond, please use the online consultation portal linked in the official notice, or reach out to the designated contact point through the usual channels.

February 04, 2026 at 12:00PM
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