Go HR founder Louise Lithgow-Dicker is urging small business owners to prepare urgently, as the UK is set to experience a potential 23% rise in tribunal cases due to a sweeping series of employment law reforms arriving between 2026 and 2027.
SMEs across the country are facing a significant shift in regulatory obligations, with 28 proposed changes that could leave unprepared employers exposed to tribunal awards averaging 13,000 and legal fees of around 20,000. Among the most notable reforms are new day one employment rights and the scrapping of the cap on unfair dismissal compensation — changes many business owners have not yet fully recognised.
Louise, who recently interviewed fitness entrepreneur Joe Wicks at BusinessMania in London on the topic of building strong internal cultures, says the volume and timing of these reforms make early HR intervention crucial for smaller employers.
“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.”
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