Legal risk and consequences
What Happens If I Get This Wrong?
You are managing a situation and a quiet voice in the back of your mind keeps asking what the consequences are if you handle it incorrectly. That question deserves a straight answer.
Most business owners underestimate the real risk
Employment law is genuinely complicated, and the consequences of getting it wrong can be significant. But the risk is rarely what most business owners imagine. It is usually not about doing something deliberately unfair. It is about following a process incorrectly, sometimes without even knowing it.
The most common source of legal exposure is not malicious intent. It is a disciplinary with steps missed, a dismissal where the documentation does not support the outcome, a grievance that was not investigated properly, or a performance conversation that was never put in writing.
Understanding what the real risks are, specific to your situation, not in the abstract, is the fastest way to stop worrying and start acting with confidence.
The actual consequences of getting it wrong
- Unfair dismissal claims with compensatory awards up to £115,115 and a basic award on top
- Uncapped discrimination awards where any protected characteristic is involved
- Legal costs on both sides. Even if you win, your own costs are significant.
- A tribunal process taking 12 to 18 months, requiring management time throughout
- Reputational exposure. Tribunal decisions are public record.
- The cost and disruption of re-hiring while a claim is still active
- Protective awards of up to 90 days pay per employee for collective consultation failures
How to reduce the risk from here
- 1
Understand exactly where you are exposed
The risk in most situations is specific and identifiable. A session with Samantha gives you an honest assessment of what has happened so far, where the exposure sits, and what can still be done to reduce it. Vague anxiety is much harder to manage than a clear picture.
- 2
Do not try to fix a flawed process by rushing it
One of the most common mistakes is trying to paper over early process errors by accelerating the steps that follow. This often makes things worse. Some situations benefit from pausing, taking advice, and restarting elements of the process correctly.
- 3
Know when to involve an employment solicitor
An HR consultant and an employment solicitor serve different purposes. A solicitor advises on legal strategy and can represent you at tribunal. Samantha advises on what to do operationally, the process, the conversations, the documentation. Knowing which you need and when is part of managing risk sensibly.
- 4
Act before the situation reaches a formal complaint
The window to correct most situations is widest before a formal claim or complaint is submitted. Once an ACAS Early Conciliation notification arrives, the dynamics change significantly. The earlier you get a clear view of where things stand, the more options you have.
Common questions
Questions business owners ask about this
What is the maximum an employee can claim at employment tribunal?+
For unfair dismissal, the compensatory award cap is £115,115 (2024/25). There is also a basic award on top, calculated from age, weekly pay and length of service. Discrimination claims are uncapped, there is no ceiling on what a tribunal can award. In practice, most tribunal awards are lower than the maximum, but legal fees, management time and business disruption add significantly to the real cost.
Can an employee take me to tribunal even if I did the right thing?+
Yes. Anyone can submit a tribunal claim, there is no upfront cost for the employee. The risk is not just in doing the wrong thing. A business can reach the right decision but follow a flawed process and still lose at tribunal. The outcome and the process are both assessed. Getting both right is what matters.
How long does an employment tribunal take?+
Most straightforward tribunal cases take 12 to 18 months from claim to hearing. Complex cases, discrimination, whistleblowing, can take longer. During that time, the claim is live, legal costs are accumulating, and the management attention required is significant. Settlement before hearing is common but often happens late in the process.
What is the most common reason employers lose at tribunal?+
Process failures. Employers who reach the right decision but cannot demonstrate that they followed a fair process, gave the employee the opportunity to respond, or kept adequate records frequently lose cases that should have been straightforward to defend. Tribunals look at whether the employer acted reasonably, not just whether the underlying decision was correct.
Will my business insurance cover an employment tribunal?+
It depends on your policy. Some employers' liability policies include employment practice liability cover. Many do not, or have significant exclusions. It is worth checking your policy before a claim arises, and not assuming you are covered. Even where insurance covers legal costs, management time and reputational impact are not covered.
Is it too late to get advice if a process has already started?+
No. Most situations that have started badly can still be improved. Getting advice mid-process is far better than completing a flawed process and dealing with the consequences. An early review of what has happened and what the risks are can significantly change the outcome, even if things have not gone perfectly so far.
You might also be dealing with
These situations often come up alongside each other.
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