Workplace conflict in the United Kingdom is at a historic high. Recent research published by Acas shows that forty four percent of working age adults experienced conflict at work in the past year. This marks a significant shift in employment relations and signals growing legal risk for employers across all sectors.
At the same time, the Employment Rights Act 2025 is expected to increase employment tribunal claims by around fifteen percent. For businesses, particularly those operating in London where workforces are large and diverse, this combination of rising conflict and expanded legal rights creates a challenging landscape.
At Penerley Solicitors, we advise employers on managing workplace disputes, reducing litigation risk, and responding effectively when conflict escalates. Understanding why disputes are increasing and how to address them is now essential.
Why workplace conflict is increasing
There is no single cause behind the rise in workplace disputes. Instead, it reflects a combination of economic pressure, cultural change, and evolving employee expectations.
Many organisations are operating under sustained financial strain. Restructuring, workload pressures, and hybrid working arrangements have placed additional stress on managers and employees alike. Communication breakdowns are more common, and unresolved issues can quickly escalate into formal grievances.
Employees are also more aware of their rights. Increased access to information, greater openness around mental health, and a cultural shift towards accountability mean that workers are more willing to raise concerns and challenge unfair treatment.
In London, where employment markets are highly competitive, disputes often arise around performance management, redundancy processes, discrimination allegations, and flexible working requests. Without careful handling, these issues can develop into costly legal claims.
The impact of the Employment Rights Act 2025
The Employment Rights Act 2025 represents one of the most significant reforms to employment law in recent years. While many of its provisions are aimed at improving workplace fairness, the practical impact for employers is an increased risk of litigation.
Key changes are expected to include expanded worker protections, changes to qualifying periods for certain claims, and stronger enforcement mechanisms. As a result, more employees will have the ability to bring claims earlier and with greater confidence.
For employers, this means that disputes which may previously have been resolved informally could now progress to tribunal proceedings. Even well intentioned businesses may find themselves exposed if policies are outdated or managers are not adequately trained.
Employment tribunal claims are not only costly in financial terms. They also consume management time, disrupt operations, and carry reputational risk. Early legal advice and preventative strategies are therefore more important than ever.
Why early intervention matters
One of the most effective ways to manage workplace conflict is early intervention. Many disputes escalate because concerns are not addressed promptly or are handled inconsistently.
Clear and lawful workplace policies provide the foundation for effective dispute management. Grievance procedures, disciplinary processes, and equality policies should be regularly reviewed to ensure they reflect current law and best practice.
Training is equally important. Managers are often the first point of contact when issues arise, yet many lack confidence in handling sensitive matters. Poorly managed conversations can unintentionally worsen a situation and create evidence for future claims.
Early legal advice can help employers assess risk, respond proportionately, and explore resolution options such as mediation or negotiated exits. Addressing issues at an early stage often prevents disputes from reaching tribunal and reduces overall cost.
How employers can protect their business
In the current climate, employers should take a proactive approach to dispute management. This includes reviewing contracts, updating policies, and ensuring that decision making is fair, consistent, and well documented.
Businesses should also be prepared for an increase in formal complaints and claims following the introduction of new legislation. Having access to specialist employment law advice allows employers to respond confidently and strategically.
At Penerley Solicitors, we work closely with employers across London to manage workplace conflict and reduce legal exposure. Our approach is practical, commercially focused, and tailored to the realities of running a business.
We advise on grievances, disciplinary action, discrimination claims, redundancy processes, settlement agreements, and employment tribunal litigation. Whether you are seeking to prevent disputes or are already facing a claim, early advice can make a significant difference to the outcome.
How Penerley Solicitors can help
With workplace disputes on the rise and legal reform increasing employee protections, employers cannot afford to take a reactive approach. Robust policies, trained managers, and timely legal advice are key to protecting your business.
Penerley Solicitors provides specialist employment law advice to employers across London, helping businesses navigate disputes with confidence and clarity.
