ERA update – Fire and rehire and more

Fire and Re-hire

The Government has confirmed that the new restrictions on fire and re-engagement practices will now come into force in March 2027, not January as expected, with a revised Code of Practice anticipated to follow in summer 2027.

A consultation has been launched in respect of the new Code of Practice, which is intended to reflect the new statutory restrictions and provide employers with guidance on consultation, employee engagement and alternatives to dismissal and re-engagement.

Further Detail on Contractual Changes

The Government has also published further guidance on the types of contractual changes that may be affected by the new fire and re-engagement provisions (aka ‘restricted variations’), including clarification on certain contractual benefits, share schemes and changes to shift patterns.

Enhanced Protection for Pregnant Employees and New Parents

In addition, the Government has released further information on its proposed enhanced protections for pregnant employees and employees taking family-related leave.

While employers will still be able to rely on potentially fair reasons for dismissal, the proposals would strengthen protections in dismissal situations by requiring employers to demonstrate that any such dismissal is a proportionate means of achieving a legitimate business aim, rather than the more familiar ‘band of reasonable responses’ test. The protections would also apply more broadly than at present, and will generally continue for at least six months following an employee’s return to work.

How Greenwoods Can Help

Although these reforms remain some way off, the latest announcements provide a clearer indication of the direction of travel. You may wish to begin considering the potential impact on workforce planning, contractual change processes and family leave policies, if you have not already done so.

To help you keep track, we have launched our Employment Rights Act 2025 Hub, a single place to find the latest updates, implementation timelines and practical insight from our Employment team as the reforms take shape. We’ll be updating it as further announcements are made, so it’s worth bookmarking. [Visit the ERA 2025 Hub →]

At Greenwoods, our Employment team is closely monitoring developments and can provide practical, commercially focused advice on the implications for your organisation, including reviewing contracts, policies and procedures to help ensure you are prepared for the forthcoming reforms.