posted 19th December 2025
A practical compliance and risk-management guide from Meridian Legal Services
The UK’s Employment Rights Act 2025 (often referred to as the “workers’ rights bill”) is reshaping the employment landscape with a phased roll-out running through 2026 and 2027.
For employers, the smart response is not panic hiring-freezes or “wait and see” policies. It’s structured readiness: tightening contracts, modernising HR processes, training managers, and building defensible decision-making so that disputes are less likely, and easier to win if they arise.
Below is how Meridian Legal Services helps companies stay compliant, reduce tribunal exposure, and protect operational flexibility while treating employees fairly.
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What’s changing and why it matters to employers
The reforms are broad, but a few changes have outsized risk impact:
- Unfair dismissal becomes available after 6 months (down from 2 years), expected January 2027. That materially expands the pool of employees who can bring claims.
- “Fire and rehire” is set to become automatically unfair in most cases from October 2026, raising the bar for contract-change projects.
- Employment tribunal time limits extend to 6 months for all claims from October 2026, increasing the period of legal exposure.
- SSP changes (day-one SSP and removal of the lower earnings limit) from April 2026 will affect payroll cost and absence management.
- Collective redundancy protective awards double to 180 days’ pay from April 2026, making process errors far more expensive.
- Industrial action dismissal protections tighten from February 2026, requiring extra caution during disputes.
- The government and Acas guidance also signals the direction of travel on enforcement, with a new Fair Work Agency planned for April 2026.
The headline: process discipline now matters more than ever. Even where an employer has a fair reason, a weak process can turn a manageable situation into a costly dispute.
Enforce a "Protect the business” compliance strategy.
1) Contract and status hygiene: stop problems before they start. Many disputes begin with unclear documents: inconsistent job titles, vague duties, informal flexible arrangements, or “contract drift” between policy and practice.
- Review employment contracts, handbooks, and templates for: probation wording, performance clauses, flexibility clauses, sickness reporting, overtime, and hours guarantees (especially where zero-hours arrangements exist).
- Align “what we do” with “what we say,” so managers don’t accidentally breach contract or trigger constructive dismissal arguments.
Why it protects you
Clear documentation reduces ambiguity, the oxygen that fuels claims.
2) Manager training: the cheapest risk reduction you can buy.
With unfair dismissal rights expanding after six months, front-line manager behaviour becomes a legal risk multiplier.
Meridian approach.
- Practical training for managers on: performance conversations, reasonable adjustments, absence management, handling grievances, harassment prevention, and record-keeping.
- “Tribunal-proofing” basics: writing notes that stand up, separating facts from opinions, and avoiding discriminatory language.
Why it protects you.
Most claims are won or lost on documentation and consistency.
3) Performance and probation: build a defensible pathway.
When the qualifying period shrinks, employers need a reliable method to identify issues early and act fairly.
Meridian approach.
- Design probation structures that are real (not just a date in the calendar): check-ins, measurable objectives, coaching records, and clear extensions where appropriate.
- Ensure performance procedures are proportionate—fast enough for business, fair enough for tribunals.
Why it protects you.
A consistent probation process reduces the risk of “surprise dismissal” claims and discrimination allegations.
4) Restructures and redundancies: process is now expensive to get wrong.
The Act increases stakes in collective redundancy errors by doubling the maximum protective award to 180 days’ pay (from 90).
Meridian approach.
- Redundancy planning support: selection pools, scoring matrices, consultation scripts, settlement strategy, and paper trails.
- Collective consultation compliance—timelines, communications, and record-keeping—so you can demonstrate meaningful consultation.
Why it protects you.
Good process keeps costs predictable and reduces the chance of claims multiplying across groups.
5) Contract change projects: redesign “fire and rehire” out of your toolkit.
“Dismissal and rehire” is expected to become automatically unfair in most cases from October 2026. Separately, a statutory code already pushes employers to treat it as a last resort.
Meridian approach.
- Plan contract changes through consultation-first models: business case, options analysis, phased changes, incentive structures, and negotiation playbooks.
- Where change is essential, we help you demonstrate necessity and reasonableness, and reduce the risk of collective conflict.
Why it protects you.
It keeps your flexibility while avoiding a strategy that’s becoming legally hazardous.
6) Harassment and whistleblowing: prevent claims that spiral fast.
The Act strengthens harassment expectations and links sexual harassment disclosures into whistleblowing protection from April 2026.
Meridian approach.
- Update anti-harassment policies and reporting routes; train managers and HR on handling complaints quickly and neutrally.
- Ensure investigations are consistent, confidential, and documented, without knee-jerk reactions that create retaliation claims.
Why it protects you.
Harassment disputes escalate quickly into reputational and regulatory issues, prevention is protection.
7) Workforce planning for zero-hours and working time changes.
The reforms include a move towards giving certain zero-hours workers the right to guaranteed hours if they want them (expected in 2027).
Meridian approach.
- Audit where you rely on variable-hours labour.
- Create compliant alternatives: minimum-hours contracts, annualised hours, or structured scheduling policies, matched to your operational reality.
Why it protects you.
You reduce disruption and protect staffing models by planning before deadlines force rushed changes.
“Protection” isn’t about dodging rights—it’s about controlling risk
Trying to “outsmart” employment reforms usually backfires. The companies that protect themselves best are the ones that:
- Make decisions consistently
- Train managers
- Document reasoning
- Consult properly
- Resolve disputes early where appropriate
How Meridian Legal Services can support you
Meridian typically supports employers through:
- Employment law readiness audits (contracts, policies, practices, risk hotspots)
- Manager training tailored to your sector and workforce model
- Restructure/redundancy support and collective consultation compliance
- Contract change strategy that avoids “fire and rehire” risk
- Tribunal risk reviews and dispute resolution strategy
- Governance support for action plans, reporting, and workforce enforcement readiness
With the right preparation and expert guidance from Meridian Legal Services, businesses can navigate the new workers’ rights reforms with confidence, protecting their operations, their people, and their future.
