The Real Cost of Handling Employment Law Yourself
Advice from an HR consultant in St Albans, supporting businesses across London, on what it really costs to handle employment law without professional help.
Over the past twelve months UK employment law has shifted more than it did in the whole of the previous decade.
If you are trying to keep up with it single-handed as a business owner, the odds are that something is slipping through. At present, a mistake can mean a tribunal claim with uncapped compensation, or a regulatory investigation you had no chance to prepare for.
And even if you are getting everything right, there is still a price to pay. Time spent reading up on new rules, agonising over a disciplinary outcome or answering managers who are unsure what they can and cannot do is time taken away from running your business.
Why employment law is moving so quickly
The Employment Rights Act 2025 became law in December and is being introduced in stages through 2026 and 2027. As an HR consultant working with small employers in St Albans and London, these are the changes I would want any business to have covered:
A shorter qualifying period for unfair dismissal. From January 2027 the two-year requirement falls to six months. Employees hired on or before 1 July 2026 will already qualify.
No more compensation cap. From January 2027 a tribunal can award any amount for unfair dismissal. The existing limit is £123,543.
Twice as long to bring a claim. From October 2026, employees get six months, rather than three, to start tribunal proceedings.
A new enforcement body. The Fair Work Agency opened in April 2026 and can look into your records and processes on its own initiative, with no employee complaint needed.
A tougher harassment duty. From October 2026 you must be able to show you have taken all reasonable steps to prevent workplace sexual harassment, including harassment by third parties.
Union access rights. From October 2026 trade unions can ask for access to your workplace to recruit and organise, whether or not you recognise a union.
That makes six major changes landing within about a year. Every one of them calls for a policy review, a change to a process, or a briefing for your managers.
Few business owners can take all of that on alone. I would strongly encourage you to get professional input, if only to find out where you stand today. For more detail on two of these changes, see my guides to the new 6-month dismissal rules and the Fair Work Agency.
What an HR consultant changes for your business
Bringing in an external HR consultant improves a few areas in a big way.
Your managers get someone else to ask.
Questions about discipline, flexible working requests or any other people issue no longer need to land on your desk. Managers can go straight to the consultant.
Gaps get found, and your legal exposure shrinks.
A consultant will go looking for weak spots in your policies, contracts, recruitment process and probation terms, then fix them. Catching a problem early is what stops it turning into an expensive tribunal award or compensation claim.
You get your headspace back.
Many of the business owners I work with tell me how much calmer they feel once someone else is handling HR. Carrying every people decision by yourself is a heavy mental load. Pass it to someone who does this for a living and you free yourself up to concentrate on growing the company.
Support from a St Albans HR consultant covering London
I work alongside small business owners as an ongoing HR partner. We deal with the regulatory changes, keep your policies up to date, train your managers and handle the situations that crop up, so you can get on with running your business.
If you would like to find out how HR support for small businesses works, book a free, no-obligation call with me.
This article is general guidance based on the position at the time of writing and is not a substitute for legal advice on your specific circumstances.
