July 2024

The end of Zero Hour Contracts: ‘Fire and Rehire’ no more

Posted on 3 July 202422 March 2025 by Sarah O'Sullivan

Labour has outlined significant employment law reforms, including the introduction of a single worker category, extending day-one rights, banning the practice of fire and rehire, and limiting the use of zero-hour contracts. These proposals could reshape employer-employee relationships across the UK.

Fire and rehire: What employers need to know

The controversial practice of “fire and rehire” made headlines in March 2022 when P&O Ferries dismissed around 800 workers. This tactic involves terminating employees and rehiring them on different, often less favorable, terms.

While fire and rehire is currently legal under UK employment law, employers must follow strict guidelines. Dismissals may be deemed fair if employers:

Engage in meaningful consultation: Employers should first consult employees and seek agreement on contract changes.
Demonstrate a sound business reason: Employers must have clear, evidence-backed justifications for the change.

Labour’s stance on fire and rehire

Labour has committed to banning fire and rehire practices. However, before this ban takes effect, employers should be aware of the government’s Statutory Code of Practice on Dismissal and Re-engagement, coming into force in July 2024. While the Code won’t prohibit fire and rehire, it will emphasize that it should be used as a last resort.

Risks of fire and rehire

Employers relying on fire and rehire practices face several risks, including:

Unfair dismissal claims: Employees may bring claims under the Employment Rights Act 1996.
Reputational damage: Poor handling of dismissals can harm brand reputation and employee morale.
Legal costs and disputes: Tribunal claims are costly, time-consuming, and disruptive.

To mitigate these risks, employers should prioritize transparent communication and consultation with employees to build understanding and reduce the likelihood of legal challenges.

Zero-hour contracts: Labour’s proposals

Labour has also promised to restrict the use of zero-hour contracts, which have faced criticism for their potential misuse by employers. Despite their flexibility, zero-hour contracts can leave workers without guaranteed hours or stable income.

What Labour plans to change

Curtailed use: While zero-hour contracts will not be completely banned, stricter regulations will apply.
Standard contracts: Workers with regular hours for 12 weeks or more must be offered a standard contract.
Worker choice: Labour claims workers can choose to remain on zero-hour contracts, but concerns remain that employers may pressure workers to do so.

Upcoming legislation on predictable work patterns

Regardless of Labour’s plans, employers should prepare for the Predictable Work Pattern Rights legislation, expected to take effect in September 2024. This will allow employees and agency workers to:

Request a predictable work pattern after 26 weeks of service.
Submit two applications within a 12-month period.

Best practices for employers

Employers are encouraged to consider alternatives to zero-hour contracts, such as:

Part-time contracts: Provide guaranteed hours for greater stability.
Annualised hours contracts: Offer flexible working patterns based on yearly commitments.
Fixed-term contracts: Suitable for seasonal work with clear end dates.
Overtime and training: Upskill existing staff to cover temporary or additional workloads.

By adopting fair and transparent employment practices, businesses can improve employee satisfaction, enhance their reputation, and reduce legal risks.

For further advice on how these changes may impact your business, contact our employment law team today.

Tees hands out Responsible Employer of the Year award

Posted on 1 July 202429 March 2025 by Sarah O'Sullivan

Tees sponsored a brand-new award for 2024 at the Eastern Echo Awards in Cambridge last week. Now in the third year, the awards took place on Wednesday 26 June to celebrate the East of England’s property industry.

The beautiful weather on the night meant the open space at Homerton College before the awards ceremony was fully utilised, with many people able to network and enjoy a drink. The black-tie event was attended by leaders from across the property sector and country, with our Commercial Property team coming together to present their award.

Partner and head of Commercial Property in Cambridge, Sarah Coates, said:

“It was a hugely enjoyable evening in a beautiful setting. The strength and depth of the projects and people nominated let alone the winners highlights the prowess of the Eastern region.”

The Eastern Echo Awards is targeted at projects, people, and places across the East of England and was judged by a panel with extensive experience and knowledge. The panel covered a range of property sectors, including office, industrial, retail, life science, and residential.

New for 2024, the award for Responsible Employer of the Year was sponsored by Tees, and organisers were asked to hear from a company, consultant, or project team that could demonstrate how successful it has been in delivering a responsible business strategy. Measurables were to include how businesses incorporated innovation, adoption of social responsibility, engagement in the local community, approach to the environment and governance or feedback from clients or a supply chain on the approach taken to do responsible business.

Tees was very pleased to hand the Responsible Employer of the Year award to Saunders Boston Architects.

Understanding the role of an Insolvency Practitioner: Your guide to financial recovery

Posted on 1 July 202420 March 2025 by Sarah O'Sullivan

Are you grappling with financial difficulties and unsure of the next steps? An insolvency practitioner could be the answer. This article delves into the world of insolvency practitioners, shedding light on their crucial role in aiding individuals and businesses navigate insolvency.

Defining an insolvency practitioner

An insolvency practitioner is a certified professional who specialises in advising and supporting individuals and businesses facing financial difficulties. They play a pivotal role in insolvency, managing and resolving financial issues fairly and efficiently.

In the United Kingdom, insolvency practitioners are regulated by recognised professional bodies such as the Insolvency Practitioners Association (IPA) and the Institute of Chartered Accountants in England and Wales (ICAEW). These bodies maintain high standards of professionalism and conduct, ensuring that insolvency practitioners possess the necessary expertise and experience to handle complex financial matters.

Insolvency practitioners are often appointed when individuals or businesses cannot pay their debts. They work closely with all parties involved, including creditors, debtors, and other stakeholders, to find the best possible solution for all parties.

Insolvency practitioners have a range of powers and responsibilities, such as:

Assessing the financial situation and determining the appropriate course of action
Administering formal insolvency procedures such as bankruptcy or liquidation
Investigating the affairs of the insolvent individual or company
Realising assets and distributing funds to creditors
Offering advice and support to debtors, helping them manage their finances and potentially avoid insolvency

Overall, insolvency practitioners play a crucial role in the financial landscape, aiding individuals and businesses in navigating challenging financial circumstances and finding the most suitable solutions for their specific situations.

Roles and responsibilities of an insolvency practitioner

One of the primary roles of an insolvency practitioner is to act as a mediator between debtors and creditors. They facilitate negotiations and find viable solutions to resolve financial difficulties. Whether negotiating payment plans, debt restructuring, or implementing insolvency procedures, their objective is to achieve the best possible outcome for all parties involved.

In addition to their mediation role, insolvency practitioners have specific duties and responsibilities depending on the type of insolvency case. For example, in a corporate insolvency case, they may be appointed as administrators, liquidators, or receivers. Their duties could include assessing the company’s financial situation, selling assets, distributing funds to creditors, and ensuring compliance with relevant laws and regulations.

In personal insolvency cases, such as bankruptcy or Individual Voluntary Arrangements (IVAs), insolvency practitioners assist individuals in managing their debt and finding the most suitable solutions. They assess the debtor’s financial situation, propose repayment plans, negotiate with creditors, and oversee the implementation of agreed-upon arrangements.

Overall, insolvency practitioners guide individuals and businesses through complex financial difficulties. Their expertise, knowledge of insolvency laws, and commitment to finding fair resolutions make them invaluable in helping people regain control of their financial situations.

Choosing the Right Insolvency Practitioner

When facing insolvency, choosing the right practitioner to guide you through the process is crucial. With so many practitioners out there, it can be overwhelming to make the right choice. However, considering certain factors can help you make an informed decision.

One of the most important factors to consider when choosing an insolvency practitioner is their qualifications and experience. Insolvency proceedings are complex, requiring a practitioner with the right expertise to handle your case effectively. Look for practitioners licensed by recognised professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Insolvency Practitioners Association (IPA).

Experience is equally important when it comes to dealing with insolvency. An experienced insolvency practitioner has likely encountered various scenarios and can provide valuable insights and solutions tailored to your situation. They have a deep understanding of insolvency laws and regulations, ensuring that your case is managed efficiently.

Furthermore, it is recommended that you assess the insolvency practitioner’s reputation and track record. Reading client testimonials, reviews, and case studies can give you an idea of their past successes and how they handle their clients’ needs.

Lastly, consider the practitioner’s communication style and approach. Insolvency proceedings can be stressful, and having a practitioner who communicates clearly and empathetically can make the process smoother. A good practitioner should be transparent about the costs, timelines, and potential outcomes.

Considering these factors, you can choose the right insolvency practitioner to provide you with the necessary support and expertise during this challenging time.

Understanding the cost of hiring an insolvency practitioner

When grappling with financial difficulties, hiring an insolvency practitioner can be crucial to resolving your financial situation. However, it’s important to understand the cost implications associated with their services.

Insolvency practitioners charge fees for their professional services, which are typically based on the complexity and duration of the case. The main types of fees you may encounter include:

Fixed fees are predetermined fees for specific services, such as assisting with Individual Voluntary Arrangements (IVAs) or bankruptcy proceedings. Fixed fees provide transparency and allow you to budget accordingly.
Hourly rates: Some insolvency practitioners charge hourly for the time spent working on your case. Hourly rates can vary depending on the practitioner’s experience and the nature of the insolvency matter.
Percentage fees: In certain cases, insolvency practitioners may charge a percentage of the funds they recover or distribute to creditors. This fee structure is commonly used in liquidation or administration scenarios.

Several factors can influence the cost of hiring an insolvency practitioner. These factors include:

The complexity of the case: The more complex the insolvency matter, the more time and expertise the practitioner requires, which can result in higher fees.
Size of the business or assets involved: The size or the value of the assets can impact the cost of the insolvency proceedings. Larger businesses or higher-value assets may require more extensive work, leading to increased fees.
Level of cooperation from stakeholders: The level of cooperation from creditors, directors, and other stakeholders involved in the insolvency process can affect the overall cost. Delays caused by non-cooperation can prolong the proceedings and increase expenses.

Discussing the fees and charges with your chosen insolvency practitioner upfront is important to ensure transparency and avoid surprises. Additionally, consider obtaining quotes from multiple practitioners to compare costs and services offered.