Dismissal and re-engagement proposal letter
Our Dismissal and Re-Engagement Proposal Letter Template assists in proposing changes while complying with UK employment regulations.
If you wish to impose a variation of a contract after consultation has not resulted in an agreement, issue this model letter template to propose dismissing the employee and re-engaging them on the new terms.
5 mins
303
What is a Dismissal and re-engagement proposal letter?
When an employer needs to make contractual modifications to an employee's terms and conditions, they should always do so after consulting and agreeing with the employee(s).
If consultation ends with no agreement, employers might occasionally be justified in unilaterally modifying workers' terms and conditions by terminating their contracts and re-hiring them on new terms and conditions under extreme situations, when there are legitimate and compelling business demands and agreement cannot be achieved.
'Fire and rehire' procedures should be used only as a last resort if revisions to employment contracts are critical and voluntary agreement is not available.
After consultation, where no agreement can be reached
The Employer (you) to the Employee
Great Britain & NI (United Kingdom)
How can I ensure that this letteris executed effectively?
| Step | Description | Responsibility | Timing |
| 1 | Determine the need for contractual changes and explore alternatives through consultation. | HR/Management | After a reasonable consultation period concludes (at least 1 week) |
| 2 | If through consultation an agreement to change terms is not able to be reached, prepare a Dismissal and Re-Engagement Proposal Letter outlining the new terms and reasons for changes. | HR/Management | Before sending |
| 3 | Schedule a meeting with the employee to discuss the proposal and address concerns. | HR/Management | After preparing letter |
| 4 | Share the letter during the meeting, explaining that dismissal and re-engagement are proposed due to the inability to agree on changes. | HR/Management | During meeting |
| 5 | Allow the employee time to consider the proposal and provide feedback. | Employee | After meeting |
What legislation and best practice guidelines have been taken into account in the development of this template?
There is no specific UK employment legislation that directly addresses "fire and rehire." Instead, the legality of such practices is subject to existing employment law principles, which include:
-
Employment Rights Act 1996: Provides employees with protection against unfair dismissal, including situations where a dismissal is not deemed fair due to a lack of substantive reason or unfair procedure.
-
Equality Act 2010: Ensures that employees are not unfairly treated or dismissed due to protected characteristics, such as age, gender, disability, or ethnicity.
-
Collective Redundancies and Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE): If dismissals are part of a larger business reorganisation, TUPE regulations may apply, which dictate the rights of employees in the event of a transfer of a business or undertaking.
In which communication or process sequence does this template belong?
Contract variation proposal letter template
If you wish to vary an employee's contract / terms and conditions, issue this model letter template as a proposal of the variation, and to request a meeting to discuss.
Dismissal and re-engagement letter template
If discussions further to consultation have not resulted in an agreement, issue this model letter template to terminate the employee and offer re-engagement on the new terms.
