Employers: Fire and Rehire Tactics

Lord Leong Excerpts

Thursday 14th September 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

My understanding is that the P&O case is still under consideration with the insolvency authorities, so I cannot comment further on it. Further consultation is going on, taking account of this case and specifically the difference between dismissal and redundancy. That will also be in the code of practice. P&O has received censure. It continues to operate within the laws of the United Kingdom and should be allowed to continue to do so.

[Lord Leong (Lab)]

My Lords, good business leaders recognise that without workers they have no business. Valuing workers, treating them with dignity and respect, and mutual trust build a dedicated, motivated workforce. Unfortunately, some employers still adopt fire and hire practices with relative impunity, disrespecting their employees’ livelihoods and well-being. In turn, that damages the reputation and profitability of their business. Do the Government think it just for workers to be treated in this manner? Why will they not stop it?

[Lord Offord of Garvel (Con)]

As I indicated, only 3% of employers have ever used these tactics. The majority of good employers understand full well that the health of their company requires a happy and motivated workforce. This is a minority situation. The code of practice will give it greater clarity going forward.