Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to the draft Code of Practice on dismissal and re-engagement, published on 24 January 2023, what assessment her Department has made of the potential impact of financial penalties on the use of dismissal and re-engagement policies by employers.

The Government is currently consulting on a draft Code of Practice to address dismissal and re-engagement. Once in force, an Employment Tribunal will be able to increase an employee’s compensation in certain circumstances by up to 25% if an employer has unreasonably failed to comply with the Code. The uplift should deter employers from using controversial tactics and failing to engage in meaningful consultations with employees and their representatives.