BrewDog accused of “firing and rehiring” following administration and sale

More drama and controversy have emerged following BrewDog’s fall into administration earlier this month.

The Scottish brewery and pub chain has recently been bought by US beverage and medical cannabis company Tilray for £33m – resulting in 38 bar closures and 484 job losses.

However, new accusations of “firing and rehiring” have come to light after the company’s new owner offered redundant staff the opportunity to reapply for jobs at Glasgow’s Merchant City and Aberdeen’s Castlegate bars.

While firing and rehiring remain legal in the UK, this move raises serious questions about employee rights and company ethics in the hospitality sector.

United Hospitality accuses BrewDog of hiring and firing practices

Earlier this week, former employees at BrewDog’s Merchant City bar were emailed by Steven Hill, the company’s head of operations, inviting them to reapply for several roles, including general manager and kitchen crew.

“We appreciate that you may have strong feelings about what has happened and we fully respect that you may not wish to engage further,” the email read.

Last Friday, former employees of the company’s reopened Castlegate bar were also allowed to reapply for their jobs. In the email, Hill clarifies that these positions would be new roles under Tilray, with new employment contracts and start dates.

However, Bryan Simpson, lead organiser for Unite Hospitality, heavily criticised this move, describing it as “morally reprehensible” and “unlawful”.

“This is a blatant attempt to strip workers of their rights and force them to compete for work they should still be in,” Simpson told The BBC.

“These workers built these venues. To sack them and then invite them back on potentially worse terms is an abuse of power. We are calling on BrewDog’s new operators to halt this process.”

What is firing and rehiring?

As the name implies, firing and rehiring is the practice of terminating an employee and then bringing them back into the company under new terms. 

The practice sometimes happens after the carrying out of workplace redundancies due to restructuring, budget issues, or contract limits, after which employees are rehired into the same roles.

Companies facing severe financial challenges may also fire and rehire to reduce staffing costs (such as lowering salaries, overtime rates, or bonuses) and reducing employee benefits. 

While controversial, firing and rehiring is legal in the UK if a fair process is followed. However, reforms from the Employment Rights Act 2025, which are expected to be enforced in January 2027, will make this practice automatically unfair unless the employer can show evidence of financial difficulties that threaten its viability.

The damage of firing and rehiring to hospitality businesses

While firing and rehiring is currently legal in the UK, this news should serve as a lesson for hospitality businesses that this practice comes with several risks. 

For one, firing and hiring will almost inevitably hurt morale and company culture. Staff who see colleagues repeatedly fired and rehired will likely feel insecure about their own jobs. Constant uncertainty has a motivation-sapping effect and will understandably make employees less enthused about going the extra mile when it comes to customer experience.

Additionally, it can increase training costs. As hospitality jobs often require specific training (such as POS systems, service standards and safety rules), firing and rehiring will disrupt this continuity and force businesses to retrain staff repeatedly.

And with the Employment Rights Act 2025 set to abolish “unscrupulous” fire and rehire practices next year, doing so without being able to prove legitimate financial reasons could land smaller hospitality businesses in legal hot water. 

As legislation continues to tighten, businesses need to ensure that – unlike Brewdog – fair treatment of their employees is always at the heart of cost-cutting conversations.

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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