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07 June 2024 / Clare Fletcher
Issue: 8074 / Categories: Features , Procedure & practice , Employment , Tribunals
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Where next for ‘fire & rehire’?

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Clare Fletcher looks into the Tesco ‘retained pay’ case & ponders how Labour in government might treat the issue
  • The Tesco ‘retained pay’ case could have significant implications for employees at Tesco, and employers who seek to harmonise their employees’ contractual terms.
  • The new code of practice for fire and rehire may have changed the scenario in the Tesco case in various ways.
  • Looks beyond 4 July, and considers how a Labour government might overhaul the law surrounding fire and rehire.

‘Fire and rehire’ is a contractual mechanism for implementing contentious changes to employees’ terms and conditions. It has been recognised and utilised in various scenarios for many years, but has come under greater scrutiny following a number of recent high-profile instances. This has resulted in both a legal challenge which reached the UK’s highest court in April, and a new statutory code of practice due to come into force in July. This article considers the implications of these developments, and what the future holds for fire and rehire.

In court

On

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MOVERS & SHAKERS

Cripps—Radius Law

Cripps—Radius Law

Commercial and technology practice boosted by team hire

Switalskis—Grimsby

Switalskis—Grimsby

Firm expands with new Grimsby office to serve North East Lincolnshire

Slater Heelis—Will Newman & Lucy Spilsbury

Slater Heelis—Will Newman & Lucy Spilsbury

Property team boosted by two solicitor appointments

NEWS
The Supreme Court has delivered a decisive ruling on termination under the JCT Design & Build form. Writing in NLJ this week, Andrew Singer KC and Jonathan Ward, of Kings Chambers, analyse Providence Building Services v Hexagon Housing Association [2026] UKSC 1, which restores the first-instance decision and curbs contractors’ termination rights for repeated late payment
Secondments, disciplinary procedures and appeal chaos all feature in a quartet of recent rulings. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, examines how established principles are being tested in modern disputes
The AI revolution is no longer a distant murmur—it’s at the client’s desk. Writing in NLJ this week, Peter Ambrose, CEO of The Partnership and Legalito, warns that the ‘AI chickens’ have ‘come home to roost’, transforming not just legal practice but the lawyer–client relationship itself
A High Court ruling involving the Longleat estate has exposed the fault line between modern family building and historic trust drafting. Writing in NLJ this week, Charlotte Coyle, director and family law expert at Freeths, examines Cator v Thynn [2026] EWHC 209 (Ch), where trustees sought approval to modernise trusts that retain pre-1970 definitions of ‘child’, ‘grandchild’ and ‘issue’
Fresh proposals to criminalise ‘nudification’ apps, prioritise cyberflashing and non-consensual intimate images, and even ban under-16s from social media have reignited debate over whether the Online Safety Act 2023 (OSA 2023) is fit for purpose. Writing in NLJ this week, Alexander Brown, head of technology, media and telecommunications, and Alexandra Webster, managing associate, Simmons & Simmons, caution against reactive law-making that could undermine the Act’s ‘risk-based and outcomes-focused’ design
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