The use of ‘fire and re-hire’ tactics are a lawful means of effecting changes to employee terms when used reasonably. However, this tactic has been heavily criticised over the course of the pandemic.
When you are seeking to change terms, you should consult with staff first to understand and allay any concerns. You must also be alive to any discrimination risks if a proposed change is likely to disproportionately impact groups with a protected characteristic. Consultation should lead to revised terms being accepted but if not and provided there is a business need for the change, you can serve notice to end the existing contract and offer the new terms. If the new terms aren’t accepted, there will be a dismissal for “some other substantial reason”. As with any dismissal, you need to ensure that you have acted fairly to avoid an unfair dismissal claim.