What the delay to ‘fire and rehire’ reforms means for schools

On 3 February 2026, the government published a revised timeline for implementing the Employment Rights Act 2025 (ERA). Notably, the restrictions on ‘fire and rehire’ dismissals in section 28 will now come into force in January 2027, rather than October 2026.

Background

‘Fire and rehire’ refers to the practice of dismissing an employee and then offering to re-engage them on new – often less favourable – terms and conditions. The ERA will significantly restrict this practice.

Once in force, it will, in most cases, be automatically unfair to dismiss an employee who refuses to agree to changes to key contract terms (such as pensions, pay, hours and holiday), unless a school can show that imposing the restricted variation was necessary to prevent serious financial hardship – a very high threshold to meet.

What does this mean for schools?

The delay gives schools more time to review their existing policies and procedures around contract variations and workforce restructuring. Schools should use this period to assess whether any planned changes to staff terms and conditions might fall within the scope of the new restrictions.

For schools currently engaged in consultations regarding changes to pension arrangements, the postponement is particularly relevant. Any dismissal and re-engagement process concluded before January 2027 will continue to be assessed under the existing legal framework. Schools considering such changes may therefore wish to review their proposed timelines carefully.

Schools contemplating any restructuring or contract variation exercise should seek specific legal advice early to ensure compliance with both current requirements and the forthcoming regime.