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Dismissal and re-engagement letter template

3 min read
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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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What is a Dismissal and re-engagement 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).

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.

Dismissal and re-engagement letter template
dismissal and re-engagement letter template

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

  1. Employment Contracts: The employment contract should be reviewed to ensure that the dismissal and re-engagement are in compliance with the terms of the contract. Employers must ensure that they have a legitimate reason for dismissing and re-engaging the employee and that they have followed a fair and reasonable process.

  2. Notice Periods: Employers should give the employee sufficient notice of the termination of their current contract and the offer of a new contract. The notice period should be in accordance with the terms of the employment contract and any statutory requirements.

  3. Consultation: Employers must consult with the employee and any relevant trade unions or employee representatives before issuing a Dismissal and re-engagement letter. This consultation should involve discussing the reasons for the dismissal and the offer of a new contract.

  4. Fairness and Objectivity: Employers must ensure that the decision to dismiss and re-engage an employee is fair and objective, and that the employee has been given sufficient feedback, support, and guidance to meet the required standards.

  5. Discrimination Law: Employers must ensure that the decision to dismiss and re-engage an employee is not discriminatory in any way. This means that the decision must not be based on the employee's race, gender, age, disability, religion, sexual orientation or any other protected characteristic.

  6. Payment and Entitlements: Employers must ensure that they comply with any contractual entitlements or legal obligations when dismissing and re-engaging an employee. This may include payment in lieu of notice or any other entitlements under the employment contract or relevant legislation.

  7. Right to Appeal: Employees have the right to appeal any decision to dismiss and re-engage them. Employers should have a process in place for employees to raise any concerns they may have and for these concerns to be addressed.

  8. Documentation: Employers should keep detailed records of the dismissal and re-engagement process, including any feedback, support, and guidance provided, and any performance issues that arose. This documentation may be useful in the event of an appeal or a claim for unfair dismissal.

Dismissal and re-engagement [Delete this line]

[Company name]

[Sender address]



[Recipient name]

[Recipient address]


Dear [Recipient first name],

We write to confirm that, as a result of our meeting with you on [date] and our failure to reach an agreement with you regarding a proposed contract variation by [date of deadline set to reach agreement], it has unfortunately become necessary to terminate your employment contract and make you an offer of re-engagement on new terms.

With the exception of [describe the specific terms of the contract of employment that have changed, such as a decrease in salary, new working hours, or an employee's move to a different workplace], the new contract of employment is identical to the previous one.

As we discussed with you, the reason for this change is [explain reasons why the new employment contract has been issued]. This is a final option after we were unable to reach an agreement to change your employment contract.

We intend for your present contract to expire on [date] in accordance with your notice period, and your new contract to begin on [next day]. Your continuous service will be maintained.

If you choose to accept our offer of employment on the new conditions, you must sign and return one of the two attached copies of the new employment contract by [date]. If we have not received this by [date], we will have no option but to terminate your employment.

You have the right of appeal against this decision. Your appeal should be directed to [Name | the HR Department | HR Services] within [number] days of receiving this letter. It should set out in full the reason(s) for your appeal.


Yours [faithfully | sincerely],



[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]


Previous step
Dismissal and re-engagement proposal letter template

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

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Dismissal and re-engagement letter template
Next step
Dismissal appeal letter template

If you wish to appeal against your dismissal, send this model letter template to your previous employer.

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