WARWICKSHIRE, UK. June 11th, 2026 – Small businesses across the UK are facing increasing exposure to employment tribunals, as a growing backlog of cases and recent legal changes highlight the need for stronger HR support.
Louise Lithgow-Dicker, founder of HR consultancy GO HR, says many employers are unknowingly at risk due to evolving legislation and limited internal expertise in managing workplace issues.
“There is currently a tribunal time bomb ticking under many small businesses,” she said.
“Business owners aren’t trying to get it wrong — they’re making mistakes because they simply don’t understand employment law.”
There are currently around 523,000 open employment tribunal cases in the UK, and that figure continues to rise. A shocking 71% involving organisations with fewer than 50 employees, placing smaller firms at particular risk.
Recent changes to employment law — including expanded day-one rights and additional compliance requirements have further increased the burden on employers, particularly those without access to specialist HR support.
For many businesses, formal HR provision is either limited or absent. This lack of resources can leave employers exposed, particularly as workplace disputes often begin with relatively straightforward issues such as pay, contracts, or holiday entitlement.
GO HR has been providing outsourced commercial HR support for the last 12 years to businesses at different stages of growth, helping them meet legal obligations and manage employee relations. Its work often focuses on identifying gaps in policies, contracts, and processes before issues escalate into formal disputes.
“The fear of a tribunal makes people focus on the end result instead of what they can fix right now,” Louise said.
While tribunals are often associated with formal legal proceedings, many cases can be prevented through early intervention and clearer internal processes. In practice, disputes frequently escalate due to misunderstandings or delayed action rather than intentional wrongdoing.
Louise notes that many business owners become responsible for employment law as their organisations expand, without formal training or dedicated HR teams. This has led to a growing number of “accidental employers” managing increasingly complex regulatory requirements.
Recent developments, including the introduction of the Fair Work Agency, will increase scrutiny further. The body has the authority to inspect workplace practices and pursue claims on behalf of employees, reinforcing the importance of having appropriate HR support in place.
GO HR’s approach focuses on establishing compliant foundations and helping organisations manage risk before it develops into formal disputes. By putting structured processes in place, businesses can reduce the likelihood of tribunal claims and respond more effectively when issues arise.
“Employment law isn’t there to scare businesses, it’s there to make sure people are treated properly,” Louise said.
“As employment regulation continues to evolve, demand for HR support is expected to remain strong among small and medium-sized enterprises seeking to reduce tribunal risk and maintain compliant workplaces.”
GO HR promotes that businesses that invest early in clear policies, consistent processes, and specialist advice are considered better positioned to manage both day-to-day HR challenges and more complex disputes as the regulatory landscape continues to develop.
