I run a UK business and I am planning to change employment contracts, including pay and working hours, where some employees may not agree to the new t?
Quick Summary
It depends on how you handle the process, as the provided statutes do not establish specific 'fire-and-rehire' rules but do govern notice periods and employee rights. You must ensure you provide the correct statutory notice to avoid legal issues during the dismissal phase.
The situation
I run a UK business and I am planning to change employment contracts, including pay and working hours, where some employees may not agree to the new terms. I understand fire-and-rehire reforms under the Employment Rights Act 2025, previously expected to take effect on 1 January 2027, have now been delayed until March 2027, while other October 2026 reforms on tribunal time limits, harassment prevention and trade union access are already in force. What law governs dismiss-and-reengage proposals in the meantime, what consultation and process must I follow, and what risks arise if I dismiss and re-engage staff before the new fire-and-rehire rules start?
Detailed Analysis
Because the specific 'fire-and-rehire' reforms you mentioned are delayed until March 2027, your current actions are governed by existing employment laws. The provided statutes do not outline a specific 'consultation process' for changing contracts, but they do set strict rules regarding the termination of existing contracts.
If you choose to dismiss employees to offer them new contracts, you must respect their statutory notice periods. Under the law, the notice you must give depends on how long they have worked for you. Specifically, the law states that notice "is not less than one week's notice if his period of continuous employment is less than two years"[1]. This means if an employee has been with you for a short time, you must give them at least one week's warning before their old contract ends. For longer-serving staff, the notice increases: "is not less than one week for each year of continuous employment if his period of continuous employment is two years or more but less than twelve years"[1].
Regarding the changes to working hours, there are specific rules for certain workers. For example, a shop worker can give an "objection notice" regarding working additional hours on Sundays[2]. If they do this, any agreement requiring them to work those extra Sunday hours becomes "unenforceable"[2]. This means you cannot force them to work those hours under the new contract if they have lodged a valid objection.
It is important to note that the provided sections do not settle the risk of 'unfair dismissal' claims. While you can technically dismiss and re-engage, doing so without a fair reason or a fair process could lead to legal challenges in an employment tribunal. The statutes provided focus on notice and specific objections rather than the overall fairness of a business restructuring.
Statutory Citations
Legal Citation: Employment Rights Act 1996 § Section 86 — Rights of employer and employee to minimum notice.
"is not less than one week’s notice if his period of continuous employment is less than two years, a is not less than one week for each year of continuous employment if his period of continuous employment is two years or more but less than twelve years"View Official Legislation →
Legal Citation: Employment Rights Act 1996 § Section 43ZA — Contractual requirements relating to working additional hours on Sundays: objection notices
"any agreement entered into between the shop worker and the employer becomes unenforceable to the extent that— a it requires the shop worker to do shop work for additional hours on Sunday"View Official Legislation →
Important Legal Disclaimer
General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.
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