Following the announcement via pre-recorded video on 17 March 2022 that P&O Ferries was dismissing 800 staff, the company has been the subject of much criticism and condemnation from experts, unions, and employees alike. The decision raised questions about the legality of the mass redundancy and the use of fire and rehire practices, which have been condemned by the Trades Union Congress (TUC).
The manner in which the redundancies were conducted has been widely criticised, with the company failing to comply with the minimum consultation period of 45 days, as required by UK employment law. The announcement was made via a pre-recorded video which cited the company's year-on-year losses of £100m and the need to reduce costs by employing cheaper agency workers.
Unions RMT and Nautilus International staged protests and demonstrations at ports across the UK, with Nautilus announcing that it would support employees with their claims. The TUC has called for an end to fire and rehire practices and an increase in fines for companies that break employment law. It also called for the immediate reinstatement of sacked employees without loss of pay.
The use of fire and rehire practices has become increasingly common in recent years, with many employers using it as a means of reducing costs and increasing flexibility. However, it has been widely criticised for its impact on employee relations and morale, as well as its potential to undermine workers' rights and protections.
Under UK employment law, employees who are made redundant have certain rights and protections, including the right to consultation, the right to a redundancy payment, and the right to claim unfair dismissal if the correct procedures are not followed. Failure to comply with these procedures can result in legal claims and penalties for the employer.
On 29 March 2022 the Government announced that there will be a new statutory Code of Practice on Fire and Re-hire which will go further than the ACAS guidance published in November 2021 which made it clear that the practice of fire and rehire should be a last resort.
In August last year, however, the Court of Appeal allowed Tesco to continue with its fire and re-hire plans which had been subject to an injunction preventing it from dismissing and re-engaging its employees in order to remove a contractual entitlement to enhanced pay. However, the trade union, USDAW, is seeking leave to appeal to the Supreme Court.
In May this year ACAS published its response to the public consultation on the Government’s draft Code of Practice on Dismissal and Re-engagement in which it raised a number of concerns, in particular, whether more could be done to discourage unreasonable use of fire and re-hire.
If you are facing redundancy, it is important to seek legal advice to ensure that your rights are protected and that the correct procedures are followed. An employment solicitor can advise you on the correct redundancy procedure and can also advise on settlement agreements, which may be offered as an alternative to legal action.
At Winston Solicitors, our employment law team has extensive experience in advising clients on redundancy procedures and settlement agreements. We understand the importance of protecting your rights and ensuring that you receive fair treatment from your employer. If you have been affected by a mass redundancy or fire and rehire practices, contact us today to discuss your options and how we can help you.
