STRATFORD-UPON-AVON, UK. December 11th, 2025 – Go HR founder Louise Lithgow-Dicker is urging small business owners to prepare now as tribunal claims are expected to surge by 23% amid sweeping workplace reforms coming into force in 2026-2027.
Small businesses across the UK face a wave of employment law changes that could expose unprepared employers to tribunal claims averaging £13,000 plus legal costs of around £20,000. With 28 proposed reforms, including day one employment rights and uncapped unfair dismissal compensation, the regulatory landscape is shifting faster than many SME owners realise.
Louise, who recently interviewed fitness entrepreneur Joe Wicks at BusinessMania in London about building strong workplace cultures, says the timing of these changes makes proactive HR support more critical than ever for small businesses.
“Small business owners spend thousands on their external brand but very little on their internal culture,” Louise said. “Joe Wicks gives his team a full hour for exercise on top of lunch breaks because he understands that looking after people protects the business. That’s exactly the culture-first mindset SMEs need right now, especially with these legal changes coming.”
The proposed Employment Rights Bill will bring the most significant shifts to UK employment law in decades. Among a host of reforms currently under parliamentary consideration are expanded protections for workers from day one of employment, enhanced redundancy consultation rights for larger employers, strengthened flexible working rights, and new enforcement measures that increase the stakes for non-compliance. The Bill also seeks to extend carers’ leave, modernise family leave entitlements, and improve off-payroll working rules. While these changes aim to give greater security to employees, they will also introduce a complex new compliance environment for SMEs that must be carefully understood and planned for.
The reforms include significant shifts that will catch many employers off guard. Day one employment rights, previously announced for immediate implementation, have now been pushed to a six-month probation period. The cap on unfair dismissal payments, currently £118,000, is being removed entirely. Statutory sick pay will be payable from day one, rather than after three working days.
Adding to the pressure, the window for bringing tribunal claims has already doubled from three to six months. Employment tribunals currently face an 18-month backlog, but with no cost deterrent for claimants and heightened public awareness of employment rights, experts predict a 23% surge in claims.
“The headlines are very scary and confusing for SME owners, who often don’t know who to turn to for reliable support,” Louise said.
With 35 years of HR experience and now in her 12th year running Go HR, Louise has built a reputation for straight-talking, practical advice that considers business realities alongside legal compliance. Recent client outcomes include resolving a complex long-term sickness case in just two weeks after the business owner had spent six months achieving nothing with a national HR provider.
The construction sector, which represents a significant portion of Go HR’s client base, faces particular risks. These business owners are experts in health and safety compliance, but often overlook employment law basics such as issuing contracts on day one, which carries an instant penalty of four weeks’ pay.
“They come to me saying: This employee is unproductive and disruptive, I need them gone,” Louise said. “Our job is to give them options, explain the consequences, and help them sleep at night instead of spending weekends worrying about ‘people’ problems.”
Louise emphasises that forward-thinking business owners are already focusing on these changes rather than waiting for legislation to land. For businesses unsure where to start, she recommends three immediate actions: review all employment contracts, audit current policies against incoming changes, and establish clear performance expectations.
“With the right preparation, these changes don’t need to be scary,” Louise added. “Businesses that take action now can actually come out stronger. But those who put their heads in the sand will find themselves in tribunal hearings costing £30,000-plus and taking 18 months of their lives.”
To learn more about the new changes and how to navigate them safely, visit www.gohr.co.uk/contact-us.
ENDS