Employment law for SMEs
Is Your Employment Contract ERA 2025 Compliant?
The Employment Rights Act 2025 is being implemented in stages. Employers should review contracts, handbooks and dismissal procedures now, before the 2026 and 2027 changes create avoidable risk.
Why this needs attention now
Many SME contracts still contain wording based on old qualifying periods, outdated sick pay provisions or informal dismissal procedures. That can leave the business exposed when a worker challenges a decision, raises a flexible working issue or disputes redundancy consultation.
Statutory sick pay and leave wording
Check whether the contract still refers to waiting days, lower earnings limits or service requirements that no longer reflect the current timetable.
Flexible working decisions
Rejection wording should be tied to a statutory ground and supported by a reasoned, practical explanation.
Redundancy consultation risk
Employers should check consultation processes before decisions are made, especially where several roles may be affected.
January 2027 preparation
The implementation timeline points to major unfair dismissal changes from 1 January 2027. Contracts and probation processes should be ready before then.
January 2027: prepare before the window closes
GOV.UK’s Employment Rights Act implementation timeline refers to a reduced unfair dismissal qualifying period of 6 months for dismissals from 1 January 2027 and uncapping compensatory awards. If you hire staff in 2026, your contracts, probation terms and dismissal processes need to be aligned before those rights become live in practice.
Book an ERA Compliance CallWhat we can review and fix
- Employment contract compliance audit against the 2026 and 2027 reform timetable.
- Written risk report and practical action plan for the business.
- Redrafting of outdated sick pay, leave, flexible working, probation, dismissal and variation clauses.
- Full employment contract template redraft where patching the old document is not sensible.
- Handbook and policy updates, including manager-facing guidance for common decisions.
- Follow-up advice call so you know what to change first.
Fixed fee options
| Service | Fixed Fee |
|---|---|
| ERA 2025 compliance audit – up to 5 employees | From £950 + VAT |
| ERA 2025 compliance audit – 6 to 20 employees | From £1,750 + VAT |
| ERA 2025 compliance audit – 21 to 50 employees | From £2,750 + VAT |
| Redrafted contract clauses | From £500 + VAT per clause set |
| Full employment contract redraft – single template | From £1,500 + VAT |
| Updated handbook section or policy | From £650 + VAT |
Fees are fixed wherever possible and confirmed before work starts. More complex projects, multiple templates or urgent deadlines may need a bespoke quote.
Why employers use NA Law Solicitors
We give direct employment law advice in plain English. The aim is not to overcomplicate the issue: it is to identify the clauses that create risk, explain what has changed, and give you practical wording that managers and staff can actually use.
Frequently Asked Questions
Which ERA 2025 changes should employers check now?
Employers should review contracts and policies against the phased Employment Rights Act 2025 timetable, including statutory sick pay, parental and paternity leave, flexible working, collective redundancy consultation risk and the 2027 unfair dismissal and fire-and-rehire reforms.
What happens from January 2027?
The GOV.UK implementation timeline refers to a reduced unfair dismissal qualifying period of 6 months for dismissals from 1 January 2027 and uncapping compensatory awards. Employers should update contracts, probation processes, dismissal procedures and manager guidance before those changes bite.
How much does an ERA compliance review cost?
Our fixed-fee ERA 2025 contract compliance audit starts from £350 plus VAT for businesses with up to five employees. Larger audits, clause redrafting and full template redrafts are quoted before work starts.
What if my contract is very old?
An older contract can usually be repaired, but it may be safer to replace the template if several clauses are out of date. We explain the risks, identify what needs changing and give you a clear fixed-fee option before drafting.
Need your contracts checked?
Send us your current contract template and we will confirm the review scope, fixed fee and turnaround before any work starts.