The UK government announced new protections against fire-and-rehire practices, specifying that changes to expenses and shift patterns will be considered restricted variations when the rules take effect in March 2027. The decision follows a consultation on whether such changes should fall under automatic unfair dismissal protections, with ministers concluding that including travel and accommodation expenses was a proportionate approach.
Expenses and Benefits Restrictions
The government confirmed that dismissing an employee to alter contractual terms for travel or accommodation expenses, or accommodation provided as a benefit in kind, will automatically be deemed unfair. Non-contractual policies or terms with existing variation clauses remain changeable. Share schemes are explicitly excluded from the new regulations.
Business Secretary Jonathan Reynolds and Kate Dearden, minister for the future of work, stated in a foreword that the measures establish a baseline for businesses by preventing fire-and-rehire tactics for core terms, except in cases of severe financial hardship. They emphasized that responsible employers can still implement non-core changes through fair processes.
Shift Pattern Limitations
Changes to shift patterns will also qualify as restricted variations under the new rules. Employees cannot be dismissed to require night shifts (11:00 pm to 6:00 am) or weekend/daytime work if they did not previously perform such shifts. Minor adjustments to availability windows by a few hours during daytime hours will not be restricted.
The timeline for the Employment Rights Act 2025 has shifted from January to March 2027. Ministers have opened a consultation on a revised code of practice on dismissal and re-engagement, inviting responses until 17 December. The consultation explores guidance for employers on handling non-restricted variations, which will still require a more complex process than current practices.
On changing shift patterns, the government concluded it was “appropriate and proportionate” to include these in restricted variations. This means that it will be automatically unfair to dismiss someone to make a change to contractual shift patterns that would mean an employee is required to work at night (11:00pm to 6:00am) where they were not required to before, or in the daytime where they were not before.
Receive the Personnel Today Direct e-newsletter every Wednesday. Rob Moss is a business journalist with more than 25 years’ experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website.
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