WARWICKSHIRE, UK, June 11, 2026 – A growing employment tribunal backlog combined with new workplace regulations is creating additional pressure for SMEs throughout the UK. HR experts are advising employers to strengthen internal processes to avoid disputes and remain compliant with evolving legislation.
Louise Lithgow-Dicker, founder of GO HR, says many business owners underestimate how quickly employment issues can escalate when HR responsibilities are managed without specialist knowledge.
“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.”
The number of open employment tribunal claims in the UK has reached approximately 523,000 and continues to increase. Smaller employers are particularly affected, with 71% of cases involving organisations with fewer than 50 employees.
New employment rights and compliance obligations have increased the complexity of workforce management. Businesses without dedicated HR support often face greater challenges in meeting these requirements.
In many SMEs, HR functions are either limited or non-existent. This can leave employers vulnerable when dealing with common workplace matters such as contracts, employee pay, and holiday arrangements.
For the past 12 years, GO HR has provided outsourced HR services to businesses at various stages of growth. The consultancy supports organisations in meeting legal obligations while improving employee relations and workplace processes.
“The fear of a tribunal makes people focus on the end result instead of what they can fix right now,” Louise said.
Although tribunals represent the final stage of many disputes, numerous cases could be avoided through earlier intervention and clearer workplace procedures. Problems often grow because issues are not addressed quickly enough.
Louise says business growth frequently results in owners taking responsibility for employment law without any formal HR training. This trend has contributed to a rise in accidental employers navigating increasingly complicated regulations.
The launch of the Fair Work Agency is expected to increase enforcement activity, with the authority able to review workplace practices and take action in support of employees where appropriate.
GO HR helps businesses put practical HR frameworks in place to minimise risk and create stronger foundations for long-term compliance.
“Employment law isn’t there to scare businesses, it’s there to make sure people are treated properly,” Louise said.
As regulatory expectations continue to evolve, SMEs are expected to place greater emphasis on obtaining professional HR guidance and reducing potential tribunal exposure.
GO HR says organisations that invest in effective policies, reliable processes, and expert support are likely to be better prepared for both routine HR matters and more significant employment disputes.
