Fire-and-rehire ban delayed, now set to start in March 2027

A key provision of the Employment Rights Bill that bans the controversial fire-and-rehire practice has been delayed until March 2027, after earlier plans to enforce it at the start of next year were stalled by House of Lords discussions. The new regulations will prevent employers from terminating employees and rehiring them on reduced pay, altered shift schedules, or reduced travel and accommodation benefits without agreement.

They also bar firms from swapping dismissed staff for lower-cost agency workers. Government officials highlighted the need to protect workers while allowing firms to retain flexibility in tough times. Trade union leaders welcomed the step but stressed the importance of robust enforcement. The change follows a broader government consultation on fire-and-rehire involving unions, employers and workers.