Fire and rehire: what changes in 2027

Dismissing an employee for refusing a “restricted variation” — such as a cut to pay, hours, pension or time off, or a power to make such changes — or to replace them on varied terms, will be automatically unfair, with no qualifying period. A narrow exception applies where the change is needed to address financial difficulties threatening the business as a going concern and could not reasonably be avoided.

We found no commencement regulations for this change on legislation.gov.uk as of 25 October 2026. The date comes from the government roadmap and may move; details depend on regulations and consultation responses. GOV.UK’s timeline (22 October 2026) says March 2027; Acas (20 October 2026) says “expected January 2027”, exact date not confirmed.

Who it affects

Employers who change terms and conditions by agreement or might need to.

What changes

• New ERA 1996 ss.104I–104K.
• Restricted variations: pay, pay structure, pension, hours, shift timing (as set by regulations), time off, and flexibility clauses that allow these.
• Other variations are judged on ordinary fairness.

What to do

1. Review variation and flexibility clauses in contracts.
2. Plan any change to pay or hours as a consultation with clear business reasons, not a dismissal threat.

Documents to review by 1 February 2027

• Employment contracts / written statements : Sick pay clause reflects day-one SSP; Probation clause: length, review, extension; References to “two years” for dismissal rights; Variation and flexibility clauses (fire and rehire); Confidentiality wording on harassment.

Tick these off and export the dates to your calendar in the business plan tab.

Sources

1. Employment Rights Act 2025, section 28 — Dismissal for failing to agree to variation of contract, etc
2. GOV.UK — Plan to Make Work Pay and Employment Rights Act: timeline update (updated 22 October 2026)
3. Acas — Employment Rights Act 2025 (updated 20 October 2026)

A summary for employers, not legal advice. Where a change depends on regulations not yet made, details may differ from this page.