Fire and rehire code of practice ‘tinkering around the edges’, TUC complains

Published

2 years ago

February 19, 2024

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A crackdown on so-called fire and rehire tactics by employers has been criticised as “tinkering around the edges” by the leader of the Trades Union Congress (TUC).

Its general secretary spoke up as the Department for Business and Trade (DBT) confirmed the creation of a new statutory code covering the practice, also known as dismiss and re-engage.

Fire and rehire refers to when an employer fires a member of staff and offers them a new contract on new, often less favourable terms.

It said the code, subject to parliamentary approval, would prevent rogue use of the tactic by employers as employment tribunals would have the power to apply an uplift of up to 25% of a person’s compensation through any unreasonable lack of compliance.

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The DBT said employers must explore alternatives to dismissal and re-engagement and have meaningful discussions with employees or trade unions to reach an agreed outcome.

“The Code makes it clear to employers that they must not use threats of dismissal to pressurise employees into accepting new terms,” the statement added.

“They should also not raise the prospect of dismissal unreasonably early or threaten dismissal where it is not envisaged.”

The draft was put out to consultation last summer and unions maintained their grievances when the code of practice was confirmed on Monday.

They have hit out at several major employers since the pandemic, including British Gas and British Airways, with the TUC suggesting in 2021 that nearly one in 10 workers had been asked to reapply for their jobs since the start of lockdown in March 2020.

However, they were particularly angry in the wake of the P&O Ferries scandal of 2022.

In March of that year, almost 800 workers were sacked at the DP World-owned company and replaced with agency staff.

Mr Hollinrake confirmed in his interview that the Insolvency Service was continuing to examine whether civil law was broken in that high-profile case.

He described the mass sackings as “disgraceful” but added: “That was a fire situation, that wasn’t a fire and rehire situation.”

“Since that, we have legislated to say that anyone working in British territorial waters must earn the National Living Wage to reduce the benefit to something like P&O might get from taking those kind of actions.

“Also, of course, workers can take their cases to employment tribunals and make sure they get significant redress for that kind of action.”

He explained that the code had to strike a balance between preventing abuse of employees and preventing job losses, saying that so-called fire and rehire should be a last resort.

“Better than hundreds of people potentially being made redundant… is to look at ways to restructure a workforce if a company hits very difficult economic times,” he concluded.

General secretary of the TUC union organisation, Paul Nowak, said the crackdown was half-baked and failed to protect workers’ rights to the extent Labour was promising.

“This code lacks bite and is not going to deter bad employers like P&O from treating staff like disposable labour,” he responded.

“We need far more robust legislation to protect people at work.

“One in 10 were threatened with fire and rehire during the pandemic – tinkering around the edges is not going to cut it.”

Business

Elon Musk’s $1trn pay package approved by Tesla

Published

15 mins ago

November 7, 2025

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Elon Musk's trn pay package approved by Tesla

Elon Musk could be on track for a $1trn (£761bn) pay package – if Tesla meets a series of extremely ambitious targets over the next 10 years.

The world’s richest man has the potential to become a trillionaire after the controversial plans were approved by 75% of the company’s shareholders.

It would be the largest corporate pay package in history.

However, it won’t be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade – more than double the number churned out over the past 12 years.

He will be tasked with dramatically increasing the company’s valuation and operating profits.

Another requirement is for Tesla to roll out one million AI-powered robots – despite the fact it hasn’t released a single one so far.

Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla.

As each step is successfully completed, he will receive more company shares and his ownership stake will rise – potentially from 13% now to almost 29%.

And even if Musk falls short of some of these targets, he could end up earning a lot of money.

Figures from Forbes magazine suggest the 54-year-old already has a net worth of $493bn (£375bn) – and while that means he has more money than anyone else on the planet, he isn’t the richest person in history… yet.

That title belongs to John D Rockefeller, the railroad titan who had a wealth of $630bn (£480bn) back in 1913 – when adjusted for inflation.

Why?

Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI).

It’s seeking a visionary leader to spearhead this move. And a lot of Tesla’s market value is tied up in this ambition.

Tesla’s board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality.

Some believe there’s no one else like Musk.

More shares in the company are “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history”, said financial services firm Wedbush.

“We believe this was the smart move by the board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk … and with the AI revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and centre.”

Opposition

Not everyone is in favour of the pay package.

Major investor advice firm Institutional Shareholder Services (ISS) warned the 10-year pay agreement reduces the board’s ability “to meaningfully adjust future pay levels in the event of unforeseen events or changes in either the performance or strategic focus of the company over the next decade”.

In a note, ISS said: “The high value of each tranche could also potentially undermine Musk’s desire to achieve all goals and create significant value for shareholders”, and that the goals “lack precision”.

Musk has described ISS and another major adviser, Glass Lewis, as “corporate terrorists”.

There was speculation he would walk away from the business if the package was not agreed on.

Business

ITV in ‘preliminary’ talks over £1.6bn sale of media and entertainment arm to Sky

Published

2 hours ago

November 7, 2025

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ITV has revealed talks with Sky, the owner of Sky News, over the possible sale of its media and entertainment (M&E) division in a deal worth £1.6bn.

Sky News understands the approach centres on the potential creation of a UK-focused streaming giant.

The division takes in ITV’s current broadcast operations and channels, which are largely dependent on advertising revenue.

The talks do not include the company’s studios arm, which makes shows such as I’m A Celebrity… Get Me Out Of Here!

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“There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place”, a statement by ITV to the London Stock Exchange said.

“A further announcement will be made in due course if appropriate”, it concluded.

ITV shares jumped by 15% in early trading in response to the statement.

Sky, which is wholly owned by the US media and entertainment firm Comcast, declined to comment.

ITV released its statement after news of the discussions were first revealed by Bloomberg News.

Just hours earlier, the company’s latest financial results showed it was moving to save millions of pounds due to an advertising slowdown.

ITV reported delays to some programmes over the coming months to save costs as a result.

It predicted a 9% decline in ad revenues across 2025, with the most recent trends being blamed on advertisers pulling back on spending in anticipation of the chancellor’s budget later this month.

It is understood that a possible deal between Sky and ITV would seek to create a larger, more attractive proposition for advertisers in the UK streaming sphere through a focus on UK audiences.

ITV has long been the subject of takeover speculation.

The latest came from the Reuters news agency earlier this year when it reported early-stage talks with Abu Dhabi-backed group RedBird IMI about a possible merger of their respective production businesses.

French media group Banijay was also reported to have held discussions about a possible offer for ITV’s studio business or a full takeover.

Business

Elon Musk’s $1 trillion pay package approved by Tesla

Published

9 hours ago

November 7, 2025

admin

Elon Musk could be on track for a $1trn (£761bn) pay package – if Tesla meets a series of extremely ambitious targets over the next 10 years.

The world’s richest man has the potential to become a trillionaire after the controversial plans were approved by shareholders.

However, it won’t be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade – more than double the number churned out over the past 12 years.

He will be tasked with dramatically increasing the company’s valuation and operating profits.

Another requirement is for Tesla to roll out one million AI-powered robots – despite the fact it hasn’t released a single one so far.

Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla.

As each step is successfully completed, he will receive more company shares and his ownership stake will rise – potentially from 13% now to almost 29%.

And even if Musk falls short of some of these targets, he could end up earning a lot of money.

That title belongs to John D. Rockefeller, the railroad titan who had wealth of $630bn (£480bn) back in 1913 – when adjusted for inflation.

Why?

Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI).

It’s seeking a visionary leader to spearhead this move. And a lot of Tesla’s market value is tied up in this ambition.

Tesla’s board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality.

Some believe there’s no one else like Musk.

More shares in the company are “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history”, said financial services firm Wedbush.

“Getting Musk’s pay package approved will be a big step towards advancing Tesla’s future goals,” Wedbush analysts wrote.

Opposition

Not everyone is in favour of the pay package.

Mr Musk has described ISS and another major adviser, Glass Lewis, as “corporate terrorists”.

There was speculation he would walk away from the business if the package was not agreed on.