The recent controversy surrounding BrewDog’s plans to reopen bars has reignited one of the most contentious employment debates: fire and rehire.
Where an employer needs to make contractual changes to an employee’s terms and conditions this should always be approached through consultation and agreement with the employee, or employees, involved.
In exceptional circumstances, where there are genuine and pressing business needs and agreement cannot be reached, employers can sometimes be justified in single-handledly changing workers’ terms and conditions by terminating their contracts and re-hiring them on new terms and conditions.
Brewdog background
After struggling financially, Brewdog entered administration in early 2026, leading to the immediate closure of 38 bars and the loss of around 484 jobs. Now, under new ownership, BrewDog is exploring reopening some of those sites. This includes bringing certain bars back into operation.
Whilst on paper this may sound like a positive step, with jobs returning, the method in doing so has grabbed many attention.
Former employees who were made redundant have reportedly been invited to reapply for their old roles, under new contracts and conditions. Critics, especially unions, point out flaws in this approach and the pressure employees may feel to accept worse terms, simply to get back in employment.
Is fire and rehire legal?
Technically, fire and rehire remains legal in the UK, provided employers follow a fair and thorough process.
Employers should always aim to avoid ‘fire and rehire’ and be able to demonstrate that they have explored every alternative avenue. Looking for alternative options demonstrates that the organisation is taking meaningful consultation seriously and not acting on this being ‘a means to an end’ to achieve dismissal and re-engagement on new terms.
However, the legal stance on this is shifting quickly.
Under reforms linked to the Employment Rights Act 2025, expected to take effect in January 2027, such practices could become automatically unfair unless companies can demonstrate clear financial necessity. Ultimately, it should be a last resort.
Final thoughts
The approach was flawed. A lack of understanding, empathy and meaningful consultation left Brewdog at great risk. Failure to follow these processes can leave organisations exposed to protective awards (increased to 180 days pay under the ERA2025), as well as unfair dismissal claims.
Genuine consultation and a careful approach to collective‑redundancy processes remain essential. Not just to avoid legal and financial exposure, but to maintain trust and protect an organisation’s reputation.
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