Also called dismissal and rehire, it’s the process of an employer terminating an employee’s contract, then rehiring the same employee on less favourable contractual terms. This may include lower pay, reduced hours, or in a less senior role.
Some employers use this tactic to cost-cut if employment negotiations fail, although the tactic is viewed as a last resort.
Although firing and rehiring staff isn’t illegal, it is controversial in the business world. With the arrival of the Employment Rights Act 2025 (reaching Royal Assent in December 2025) there are new employee protections set to come into effect from 1st January 2027. These will provide staff with more protections from unethical employer tactics.
