How to Update Contracts for New Legislation
Update contracts for new legislation by monitoring legal changes relevant to your business, auditing existing contracts to identify affected provisions, drafting amendments to bring contracts into compliance, and agreeing the changes with counterparties.
Last updated: February 2025
Step-by-Step Guide
Monitor relevant legislative changes
Subscribe to legal updates from the government, relevant regulators, and industry bodies. Key areas include employment law, data protection, consumer rights, and tax.
- •Set up alerts for legislation.gov.uk and sector-specific regulators.
Audit your contract portfolio
Review existing contracts to identify which are affected by the legislative change. Focus on clauses that reference specific statutes, regulations, or rights that have changed.
- •Prioritise high-value contracts and those with the most exposure.
Draft necessary amendments
Prepare variations to update affected clauses, referencing the new legislation. Consider whether a simple amendment suffices or whether a broader contract review is needed.
- •If the contract references a statute 'as amended from time to time', it may automatically incorporate changes.
Agree and execute amendments
Send proposed amendments to counterparties, negotiate where needed, and execute variations following the contract's amendment procedure.
- •Keep a log of which contracts have been updated and which are still pending.
Legal Requirements
Contracts must comply with current legislation. Key recent changes affecting UK contracts include the Employment Rights (Amendment) Regulations, the Online Safety Act 2023, updates to UK GDPR guidance, and changes to consumer protection rules. Some legislative changes override contrary contractual terms automatically.
Common Mistakes
Template / Example
When to Get a Solicitor
When the legislative change is complex, affects many contracts, or has significant commercial implications that require expert interpretation.
FAQ
Do contracts automatically comply with new legislation?
Some legislation overrides contractual terms automatically (e.g. employee statutory rights cannot be contracted out of). However, most contractual provisions need to be actively updated to reflect legislative changes.
How often should I review my contracts for legislative compliance?
At minimum, conduct an annual review. Additionally, review contracts whenever significant legislation affecting your industry is announced, giving yourself time to implement changes before the law takes effect.
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