EMPLOYMENT LAW AND TRIBUNAL RISK

The questions most founders and CEOs are already asking.

What Triggers An Unfair Dismissal Claim?

An unfair dismissal claim is typically triggered when an employee is dismissed without a fair reason or without following the correct legal procedure. Common triggers include dismissing someone without a proper disciplinary process, making someone redundant without correct consultation, dismissing someone shortly after raising a grievance and inconsistent application of disciplinary procedures across the workforce.

What Are The Most Common Causes Of Employment Tribunal Claims?

The most common causes of employment tribunal claims in the UK include unfair dismissal, discrimination in hiring or termination decisions, poorly managed redundancy processes, failure to follow correct disciplinary and grievance procedures, mismanaged exits and poorly structured employment contracts.

How Much Can An Employment Tribunal Claim Cost A Business?

Employment tribunal claims can cost a business significantly. Legal fees alone can run into tens of thousands of pounds. From 6 April 2026, the maximum compensatory award for unfair dismissal increased to £123,543, and discrimination claims carry unlimited compensation. From 1 January 2027, the cap on unfair dismissal compensation will be removed entirely under the Employment Rights Act 2025, making unfair dismissal financially equivalent to discrimination claims. Beyond the financial cost, tribunal claims consume management time, damage team morale and create reputational risk that affects hiring and investor confidence.

Can I Be Taken To Tribunal For Making Someone Redundant?

Yes. Redundancy is one of the most common triggers for employment tribunal claims in the UK. A tribunal claim can arise if the redundancy process was not genuinely fair, if correct consultation procedures were not followed, if the selection criteria were discriminatory or if the process was used to dismiss someone for an unlawful reason. Getting redundancy right requires the right legal understanding and process from the start.

How Does Poor Management Lead To Tribunal Claims?

Poor management is one of the leading causes of employment tribunal claims. Managers who handle disciplinary processes incorrectly, dismiss employees without following proper procedure, treat employees inconsistently or create a hostile working environment all create significant legal exposure for the business. Investing in leadership and manager development is one of the most effective ways to reduce tribunal risk.

What Are The Employment Law Risks Of Adopting AI In My Business?

Adopting AI in your business without the right people strategy creates significant employment law risk. This includes the risk of unlawful redundancies if roles are eliminated without correct consultation, discrimination risk if AI tools are used in hiring decisions without proper oversight and contractual risk if employment terms are changed without following the correct legal process. Getting AI adoption right requires both people strategy and legal understanding.

How Do I Know If My Hiring Process Is Creating Legal Risk?

Your hiring process is creating legal risk if it lacks consistent and documented criteria for candidate selection, if interview questions could be considered discriminatory, if offers are made without proper contractual documentation or if the process treats candidates inconsistently. A talent strategy audit can identify where your hiring process is creating legal and financial exposure before it becomes a problem.

What Should I Do If My Business Receives An Employment Tribunal Claim?

If your business receives an employment tribunal claim you should seek legal advice immediately. In parallel, review the people decisions that led to the claim and identify any process gaps that need to be addressed to prevent future claims. Spencer & Trent works with businesses after a claim to identify what went wrong and build the people strategy and processes that protect against it happening again.

Why Does Employment Law Knowledge Matter In Talent Strategy?

Talent decisions and employment law are inseparable. Every hire, exit, restructure and people strategy carries legal implications that most businesses only discover when something goes wrong. Abi’s background as a solicitor representative, working across court and tribunal proceedings, means every strategy Spencer & Trent builds is grounded in the legal and financial realities that protect businesses from the consequences of getting people decisions wrong.

How Can Businesses Protect Themselves From Employment Tribunal Claims?

Businesses can protect themselves from employment tribunal claims by ensuring every HR and hiring decision is made with the right legal understanding, process and strategy in place. Spencer & Trent identifies the legal and financial risk in every talent decision before it becomes a costly tribunal claim or financial liability.

What Is The Difference Between An Employment Lawyer And A Talent Strategy Consultant?

An employment lawyer advises you after a claim has been made. Spencer & Trent works with you before it happens. We identify the people decisions that create legal and financial exposure and build the strategy to address them, protecting your business from ever reaching that point.