THINK BEFORE YOU FIRE AND REHIRE EMPLOYEES
by Olivia Bailey Solicitor, Harrison Drury
In March 2022, following the P&O Ferries scandal, the government announced a new statutory code of practice on ‘fire and rehire’.
The code is designed to encourage employers to engage in meaningful consultations with employees if they wish to introduce changes to employees’ terms.
Firing and rehiring occurs when employers dismiss workers and rehire them on new, less-favourable terms, often to save operational costs.
P&O Ferries’ sacking of 800 staff by video recording demonstrates what not to do when planning to make redundancies or change workers’ terms.
Whilst terminating employment via a videocall is not ideal (it is the message rather than the delivery method that is important), the issue with the P&O Ferries case is the lack of warning or consultation.
Had they complied with their legal obligations, P&O Ferries would have notified the government’s Redundancy Payments Service,
then informed staff of the risk of redundancy and entered formal consultations for a minimum of 45 days with affected employees.
The 45-day requirement applies where an employer proposes to make more than 100 staff redundant.
During the consultation process, alternatives to dismissal would have been explored and although, ultimately, it may have made no change to the outcome, staff would have been given time to adjust and explore options.
The new statutory code will assist businesses to hold transparent consultations and to act as a deterrent to businesses in similar circumstances to P&O Ferries. Its use will be considered by courts and employment tribunals when determining claims.
Where employers unreasonably fail to follow the code, employees’ compensation may be increased by up to 25 per cent.
Currently, legislation to implement the new code will be introduced when parliamentary time allows.
PUTTING PEOPLE FIRST by Claire Sofield
Co-owner and managing director, Four Recruitment
The UK’s post-pandemic comeback has meant that the employment rate is at its highest ever.
This competitive market is leading to over-inflated salaries in a bid to outcompete other businesses for the same talent.
This tactic may be providing short-term relief but is wholly unsustainable.
There’s no denying that everyone’s biggest challenge right now is people but whilst everyone is struggling to recruit, the key is to focus on retention.
Forty-one per cent of people are considering leaving their role due to lack of belonging and not feeling valued, suggesting that staff are prioritising more than just salary.
My advice to any business owner would be to really understand your people, what motivates them, their purpose and their overall connection to the business in order to prioritise their needs.
As the market continues to drive salaries up and attrition rates are at an all-time high, it’s essential to shift focus to maintain a happy and content workforce.
A personalised employee experience is essential and provides the opportunity for an employer to truly cater to an individual’s motivations and improve engagement.
If you can get this right, you will undoubtedly avoid the struggle that comes with finding the right talent for your business.
I’m starting to see a significant divide between the innovative, forward-thinking businesses that have really put their people first and those that are stuck with traditional and outdated employee offerings.
Essentially, if you’re not willing to adapt and keep up with the needs of your people then you will lose access to the best possible talent.
LANCASHIREBUSINESSVIEW.CO.UK Doing recruitment
the right way
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RECRUITMENT
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