Fire-and-rehire: Labour backs bid by MP Barry Gardiner to curb 'worst excesses'

Labour is backing a bid to change the law to curb firms' ability to lay staff off and take them back on different - often worse - pay and terms.

The practice - known as "fire-and-rehire" - has caused several industrial disputes.

A bill going before MPs on Friday says fire-and-rehire should not be allowed unless employees are properly consulted first.

But the government has ordered Tory MPs to oppose the legislation.

Fire-and-rehire has existed for decades, but the practice has come under more scrutiny recently as more firms hit by the pandemic have used it to reduce their staffing costs.

Prime Minister Boris Johnson has called it "unacceptable" for bosses to use to force fire-and-rehire on workers simply to increase profits.

But the government does not plan to ban Labour MP Barry Gardiner's proposed law.

But on Friday it will order its MPs to support this bid to limit the practice.

The private member's bill, proposed by Mr Gardiner, says employees should be fully consulted on any fire-and-rehire plans.

If the employees agreed to it, they could be taken on under new terms, under the proposed new law.

But if a dispute occurred between staff and a company, an independent committee would decide on whether the fire-and-rehire could go ahead, the bill says.

Mr Gardiner told the BBC his plan was a "practical" way to deal with the "worst excesses" of fire-and-rehire - and said the proposals could become law quickly if supported by the government.

The BBC understands that government ministers have been approached to see if they will support his plan.

The Commons debate is expected to last about four hours and the bill can be "talked out", meaning that MPs opposing it can stop a vote happening by continuing to speak right up to the allotted finishing time for discussion.

The Department for Business, Enterprise and Industrial Strategy has been asked for a comment.