You’ve got a contract term you regret. Maybe it’s overtime you can’t sustain, enhanced sick pay that keeps biting every winter, or a bonus structure that looked generous when the team was small and now feels ruinous. You’ve heard the “solution” at the golf club: dismiss them and re-engage them on new terms. The problem is that, from October 2026, that move becomes a legal landmine for most employers, with dismissal and re-engagement usually treated as automatically unfair dismissal under the post-Employment Rights Act 2025 landscape. 

We walk through what actually changes, why the public mood and tribunal risk matter for SMEs, and the narrow circumstances where the old approach might still be argued as business survival. Then we get practical. We lay out the five-step, grown-up method for contract change in 2026: build a clear business case, check the existing variation and flexibility clauses (and why they rarely cover big changes), consult properly rather than just “inform”, and make agreement more likely with fair trade-offs like phased changes or a one-off payment. 

We also bust the myths that cause the most damage, including the idea that you can simply give notice of a change, or that small businesses fly under the radar. You’ll finish with a quick action list you can do this week, plus a contract review conversation script mentioned in the show notes. If you find this useful, subscribe, share it with a fellow business owner, and leave a review so more people can find straight-talking HR help.

If you’re not 100% sure how your HR is really holding up, take our free HR Health Check. It’s short, jargon-free, and gives you a clear score on what’s working — and what needs a bit of love.

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If you're not sure how your HR is really holding up, take the free HR Health Check. It's short, jargon-free, and gives you a clear score on what's working and what could do with a bit of love.

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Got a question or need actual HR support? Find Kate at kateunderwoodhr.co.uk, email [email protected], or follow along on social.

Until next time, keep buzzing, and take care of your people.