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🇬🇧 UK-only · Updated for ERA 2025 Rights

Fire & Rehire Rights Checker

Check your legal options if your employer tries to force you onto a worse contract. Calculate your financial loss vs your redundancy pay if you refuse.

✓ERA 2025 Compliant✓Statutory Redundancy✓Unfair Dismissal Values✓Free — no sign-up

Your Details & The Proposed Contract

You need 2+ years for redundancy pay
The worse terms offered in the fire & rehire

Option A: Accept New Terms

What happens if you sign the new contract

Annual Financial Loss
-£0.00 / yr
Monthly Loss (Gross):-£0.00

Note: If you continue working without explicitly accepting or rejecting the new terms, it may be legally deemed as "implied acceptance" after a certain period.

Option B: Refuse & Be Fired

What you are legally owed if dismissed

Statutory Redundancy Owed
£0.00
Formula applied:0 weeks' pay
Capped weekly pay:£751.00

ERA 2025 Protections:

If you claim Unfair Dismissal, the Employment Tribunal "Basic Award" will typically mirror the £0.00 above, plus a "Compensatory Award" for lost future earnings.

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What Is Fire and Rehire?

"Fire and rehire" (legally known as dismissal and re-engagement) is a controversial practice where an employer wants to change your terms and conditions—such as cutting your pay, reducing your hours, or removing benefits. If you refuse to agree to the new terms, they fire you from your current contract and immediately offer you a new contract containing the worse terms.

Is Fire and Rehire Legal Under the Employment Rights Act 2025?

While not completely banned, the Employment Rights Act (ERA) 2025 makes it incredibly difficult for employers to use this tactic without facing severe financial penalties in an Employment Tribunal. The new laws force employers into deep consultation periods and grant workers immediate rights to fight the decision.

If you are currently going through this, you must keep track of all dates, as you only have a strict window to file a tribunal claim. You can use our Employment Tribunal Deadline Calculator to ensure you don't miss your window.

What Are You Owed If You Refuse the New Contract?

If you refuse the new terms and your employer dismisses you, they are legally terminating your employment. Therefore, they must pay you everything you would normally be owed in a dismissal or redundancy scenario:

  • Notice Pay: They must pay you for your full notice period, or give you Payment in Lieu of Notice (PILON). You can check how much this is using our Notice Pay Calculator.
  • Accrued Holiday Pay: Any untaken holiday must be paid out in your final payslip.
  • Statutory Redundancy Pay: If the reason for the contract change is a reduced need for work, and you have over 2 years of service, you are entitled to a tax-free redundancy payout (which our tool above calculates for you). You can read more on our Redundancy Calculator page.

Can You Claim Unfair Dismissal for Fire and Rehire?

Yes, and this is the biggest change brought in by the ERA 2025. Previously, you needed 2 years of service to claim unfair dismissal. Now, it is a Day-One right.

If you refuse a fire and rehire contract and are dismissed, you can immediately take your employer to an Employment Tribunal. If the tribunal finds that the employer did not have a genuinely pressing business need, or failed to consult properly, they will order the employer to pay you a Basic Award (which mirrors statutory redundancy) plus a Compensatory Award for your lost future earnings.

Your Rights

Frequently asked questions

Is fire and rehire legal in the UK in 2026?
While not explicitly made a criminal offence, the Employment Rights Act (ERA) 2025 makes it extremely difficult for employers to legally use fire and rehire. Under the new laws, an employee can claim unfair dismissal from day one if they are fired for refusing worse terms, and the tribunal has powers to enforce much higher payouts or reinstatement.
What are my rights if my employer fires and rehires me?
You do not have to accept the new contract. You have the right to refuse it. If your employer then dismisses you, they must pay your full notice period (or Payment in Lieu of Notice), any accrued holiday pay, and if you have over 2 years of service, your full statutory redundancy pay.
Can I claim unfair dismissal if I'm fire and rehired?
Yes. Following the ERA 2025, employees now have a 'day-one' right to claim unfair dismissal. This means if you are fired for refusing a worse contract, you can take your employer to an Employment Tribunal immediately, regardless of how long you have worked there.
What does the Employment Rights Act 2025 say about fire and rehire?
The ERA 2025 introduced severe penalties for employers attempting to bypass negotiations by unilaterally firing staff and rehiring them on worse terms. It grants workers day-one unfair dismissal rights, and mandates stringent consultation periods before any terms can be legally altered.
What redundancy pay am I owed if I refuse a fire and rehire contract?
If you have 2+ years of service and your employer terminates your original contract because you refused the new one, you are entitled to statutory redundancy pay. This is calculated using your age and length of service, capped at £751 per week (for the 2026/27 tax year).
Can I refuse a fire and rehire contract?
Yes, you can explicitly refuse the new contract. However, you must do so clearly in writing. If you simply continue working without formally objecting, your employer may argue that you gave 'implied consent' to the new terms.
What is the difference between fire & rehire and a lawful variation of contract?
A lawful variation of contract requires mutual agreement. Your employer proposes changes, and you agree to them, often in exchange for something else. Fire and rehire is a unilateral move where the employer terminates your existing contract to force you onto a new one without your agreement.
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