Welcome back.

I hope you managed to switch off over the break. While most of the profession was winding down, the Employment Appeal Tribunal (EAT) was busy clearing its desk. A flurry of judgments released just before Christmas provides some sobering reading for the year ahead—particularly if your 2026 plans involve restructuring.

Here is what you might have missed while tackling the turkey.

1. Redundancy: Efficiency is not Fairness

Gormley v Phoenix Business Solutions (UK) Ltd [2025] EAT 198 (22 Dec 2025)

If you are planning workforce changes in Q1, Gormley is your warning shot.

The employer here conducted what looked like a textbook "efficient" redundancy process. They had business reasons, they had a timeline, and they made the cuts. But the EAT overturned the Tribunal's finding of fairness.

Why? Because "efficiency" often masks a lack of genuine consultation. The EAT reiterated that consultation must take place when proposals are still at a formative stage. Presenting employees with a fait accompli—no matter how financially necessary—renders the dismissal unfair.

The Takeaway: Don't let the pressure of Q1 budgets rush your process. A two-week consultation that is merely a tick-box exercise is more expensive in the long run than a four-week consultation that is genuine.

2. Can a State be an Employer?

Mrs A Muda v Malaysia [2025] EAT 193 (23 Dec 2025)

In a fascinating constitutional twist, the EAT had to decide whether the High Commission of Malaysia could claim "State Immunity" to block an employment claim by a domestic worker.

Historically, diplomatic missions have used the State Immunity Act 1978 as a shield. But the EAT has confirmed that this shield is cracking. Where the employment is purely domestic (e.g., administrative or service roles) and does not touch on the "sovereign authority" of the state, UK employment law applies.

The Takeaway: It’s a niche point, but it reinforces a universal truth practical to all employers: you cannot contract out of the law, and you cannot hide behind your status—whether you are a gig economy platform or a sovereign nation.

3. The 2026 Outlook

We enter 2026 with the Employment Rights Act looming. Implementation dates are still fluid, but the direction of travel is clear: Day 1 rights for unfair dismissal are coming.

If Gormley teaches us anything, it is that process will become the only defence. In a world where probation periods effectively vanish as a "free pass," your capability and conduct procedures must be flawless from the start.

Need a steer?

If you are looking at the year ahead and seeing more risk than opportunity, let's talk. Whether it's tightening up your redundancy consultation scripts or reviewing your contracts for the new Act, I can help you navigate the changes.