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Dismissal and re-engagement proposal letter template

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Our Dismissal and Re-Engagement Proposal Letter Template assists in proposing changes while complying with UK employment regulations.

If you wish to impose a variation of a contract after consultation has not resulted in an agreement, issue this model letter template to propose dismissing the employee and re-engaging them on the new terms.

We also have budget-friendly bundles featuring this template:

What is a Dismissal and re-engagement proposal letter?

When an employer needs to make contractual modifications to an employee's terms and conditions, they should always do so after consulting and agreeing with the employee(s).

If consultation ends with no agreement, employers might occasionally be justified in unilaterally modifying workers' terms and conditions by terminating their contracts and re-hiring them on new terms and conditions under extreme situations, when there are legitimate and compelling business demands and agreement cannot be achieved.

'Fire and rehire' procedures should be used only as a last resort if revisions to employment contracts are critical and voluntary agreement is not available.

What are the best practice implementation milestones / timescales?

Step Description Responsibility Timing
1 Determine the need for contractual changes and explore alternatives through consultation. HR/Management After a reasonable consultation period concludes (at least 1 week)
2 If through consultation an agreement to change terms is not able to be reached, prepare a Dismissal and Re-Engagement Proposal Letter outlining the new terms and reasons for changes. HR/Management Before sending
3 Schedule a meeting with the employee to discuss the proposal and address concerns. HR/Management After preparing letter
4 Share the letter during the meeting, explaining that dismissal and re-engagement are proposed due to the inability to agree on changes. HR/Management During meeting
5 Allow the employee time to consider the proposal and provide feedback. Employee After meeting
Dismissal and re-engagement proposal letter template
dismissal and re-engagement proposal letter template

What legal and best practice aspects should employers be aware of?

There is no specific UK employment legislation that directly addresses "fire and rehire." Instead, the legality of such practices is subject to existing employment law principles, which include:

  • Employment Rights Act 1996: Provides employees with protection against unfair dismissal, including situations where a dismissal is not deemed fair due to a lack of substantive reason or unfair procedure.

  • Equality Act 2010: Ensures that employees are not unfairly treated or dismissed due to protected characteristics, such as age, gender, disability, or ethnicity.

  • Collective Redundancies and Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE): If dismissals are part of a larger business reorganisation, TUPE regulations may apply, which dictate the rights of employees in the event of a transfer of a business or undertaking.

Dismissal and re-engagement proposal [Delete this line]

[Company name]

[Sender address]



[Recipient name]

[Recipient address]


Dear [Recipient first name],


Proposed dismissal and re-engagement

You will be aware that [Company] proposed a change to your terms and conditions of employment following the [group/department/team] meeting on [date] and the individual meeting with you on [date].

The proposed variation was [describe the proposed variation, such as a reduction in pay, new working hours, or an employee relocation to a different workplace].

The explanation we presented for the change was [explain arguments for the suggested modification].

Unfortunately, we were unable to reach an agreement with you regarding the variation by [date of deadline set to achieve agreement], and we will now have to consider terminating your employment contract and re-engaging you on the new terms.

We would like to meet with you individually to discuss the proposed termination of your employment contract and the offer of re-engagement on the new conditions. We suggest holding this meeting on [day], [time], and [location]. [name] will chair the meeting, and [name] will also be present.

The meeting will provide you the opportunity to express your feelings regarding the planned termination of your employment contract and offer of re-engagement, as well as to provide us with feedback.

  • The reasons for your refusal to agree to the proposed change.
  • The proposed termination of employment and offer of re-engagement and the effect that this will have on your employment (for example, in relation to your continuity of employment, which will be unaffected).
  • Any representations that you wish to make, including suggestions for avoiding dismissal.
  • Any questions you may have about the planned termination of employment and re-engagement offer.

This meeting will allow you to be accompanied by a [trade union representative/workplace colleague]. If the suggested meeting time or date is inconvenient for you or your selected companion, please contact me and I will do my best to reschedule the meeting to accommodate all parties.

Yours [faithfully | sincerely],



[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]


The Dismissal and re-engagement proposal letter template is issued by an employer
Issue path
The Dismissal and re-engagement proposal letter template is issued to an employee


After consultation, where no agreement can be reached.


Previous step
Contract variation proposal letter template

If you wish to vary an employee's contract / terms and conditions, issue this model letter template as a proposal of the variation, and to request a meeting to discuss.

This step
Dismissal and re-engagement proposal letter template
Next step
Dismissal and re-engagement letter template

If discussions further to consultation have not resulted in an agreement, issue this model letter template to terminate the employee and offer re-engagement on the new terms.

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