Four leadership traits consistently fuel unicorn-level growth regardless of the founder’s background or identity, a new report has found. The Inclusive Alpha Founder Report 2025 analysed 171 unicorn founders to discover what traits set them apart. It discovered that low neuroticism and inward focus, as […]
StartupsAs of 1 October 2025, England’s “out-of-home” food and drink sector can no longer offer free refills on drinks with a high fat, sugar, or salt content (HFSS). This means that restaurants, cafés, pubs, bars, and takeaways that previously offered customers unlimited sugary drinks will […]
StartupsCyber attacks have been ramping up in 2025, with high-profile businesses like M&S, Harrods and Co-op all being hit. According to the government’s 2025 Cyber Security Breaches Survey, just over four in 10 businesses reported a cyber attack in the 12 months prior to June. […]
StartupsFour leadership traits consistently fuel unicorn-level growth regardless of the founder’s background or identity, a new report has found. The Inclusive Alpha Founder Report 2025 analysed 171 unicorn founders to discover what traits set them apart. It discovered that low neuroticism and inward focus, as […]
StartupsFour leadership traits consistently fuel unicorn-level growth regardless of the founder’s background or identity, a new report has found.
The Inclusive Alpha Founder Report 2025 analysed 171 unicorn founders to discover what traits set them apart. It discovered that low neuroticism and inward focus, as well as high analytical thinking and assertiveness, are all shared by the most successful entrepreneurs.
There is a stereotype that venture capital firms can favour the stereotypical Silicon Valley founder, typically white, male, and well-connected, leaving funding gaps for others.
By recognising that behaviour, not demographics, predicts success, the report says we can support a more inclusive approach to backing future founders.
To explore which traits truly define unicorn founders, separate from their background, Ada Ventures, a pre-seed inclusive venture capital firm, performed psycholinguistic analysis (LIWC) to study how unicorn founders think and communicate.
A unicorn company is a startup valued at over $1 billion. Some UK-based success stories include Deliveroo, Monzo, and Revolut.
Of the 159 measurable traits looked at in the report, only 18 were meaningfully different between unicorn founders. This indicates that successful founders share a common mindset.
Across the founders studied, there was a clear trend: they scored higher on analytical thinking and assertiveness, and lower on neuroticism and inward focus.
Analytical thinking reflects a logical, data-driven approach to problem-solving, and founders who rely on evidence and structured reasoning to make decisions. Assertiveness speaks to clear and confident communication, in addition to being able to take initiative and lead with conviction.
In contrast, low neuroticism suggests maintaining emotional stability under pressure, staying calm and focused in the face of stress or setbacks.
Meanwhile, lower inward focus indicates a tendency to look outward toward opportunities and action rather than overanalysing or relying too heavily on introspection.
While some people may seem to exude natural confidence, these traits are less about being born with it and more about consistent practice.
Future founders can intentionally work on developing a values-based leadership style in a few different ways:
These four traits aren’t innate; they’re learnable skills any entrepreneur can build. And as Ada Ventures’ report shows, the next unicorn founder might not look like the last, but they will likely share a similar mindset.
The post Unicorn founders have four traits in common, finds report appeared first on Startups.co.uk.
As of 1 October 2025, England’s “out-of-home” food and drink sector can no longer offer free refills on drinks with a high fat, sugar, or salt content (HFSS). This means that restaurants, cafés, pubs, bars, and takeaways that previously offered customers unlimited sugary drinks will […]
StartupsAs of 1 October 2025, England’s “out-of-home” food and drink sector can no longer offer free refills on drinks with a high fat, sugar, or salt content (HFSS).
This means that restaurants, cafés, pubs, bars, and takeaways that previously offered customers unlimited sugary drinks will need to remove this option from their menus or risk fines for non-compliance.
The move is part of a wider government push to reduce the consumption of unhealthy drinks and their impact on public health and childhood obesity.
Still, for many in the hospitality industry, already up against rising costs and staffing challenges, it’s yet another regulatory shift to adapt to.
Under the new laws, all HFSS drinks products can no longer be promoted with volume-based offers, such as multibuy deals, free refills, or buy-one-get-one-free offers on sugary drinks.
The rules apply across England to all out-of-home venues, including hospitality outlets, cafés, and restaurants, as well as supermarkets, high street shops, and online retailers.
For example, Nando’s popular free-refill policy is now limited to only zero-sugar options like Fanta Zero and Sprite Zero. Fans of full-fat Coke will now have to savour just a single glass.
The legislation aims to tackle obesity and reduce the impact of unhealthy food and drink on public health. Each food and drink item has been assessed by the government using an external classification system to identify those affecting childhood obesity the most.
In drinks, the worst offending culprits include sugary fizzy options like lemonade and cola. For food, items such as crisps, sweets, chocolate, ice cream, pastries, cakes, and even some fish fingers and pizzas will now be restricted under the new laws.
A spokesperson for the Department of Health and Social Care described the restrictions as “a crucial step” in giving children a healthy, happy start in life.
“Obesity robs children of the best possible start, sets them up for lifelong health problems, and costs the NHS billions,” they told the BBC.
If you run a pub, restaurant, or bar that currently offers free refills or multibuy discounts on sugary drinks, head to the government implementation guidance for help on how to proceed with the new laws in mind.
For venues, compliance with the new HFSS rules is a legal requirement. Failing to follow the regulations could end in enforcement action or fines of up to £2,500, though local authorities are expected to take a supportive, “work-with” approach before penalising businesses.
In practical terms, operators may need to rethink how they design menus, price items, and run promotions. That may include axing free refills on sugary drinks, adjusting bundle offers, and updating digital menus and in-store signage to reflect the changes.
From a customer experience POV, transparency is key. Make sure to clearly communicate the reasoning behind why you’ve removed a likely well-loved deal from your menu, to prevent your guests from feeling confused or frustrated.
Though as health-conscious dining becomes more mainstream, the new restrictions may actually align well with changing consumer tastes for lower-sugar, lower-calorie options alongside alcohol-free alternatives.
The first step is to audit your current menu and promotions. Any volume-based deals on food or drinks that fall into the HFSS category should either be removed entirely, replaced, or reframed, for example, limiting refills to zero-sugar options or suggesting healthier pairings.
Staff should also be briefed on the new rules and supported with clear talking points so they can handle customers’ questions on the changes.
If you still want to offer deals, alternatives such as loyalty points, combo discounts on healthier items, or limited-time deals that promote balanced choices are all still on the table.
By keeping menus flexible, transparent, and health-conscious, hospitality brands can strengthen their image and build long-term customer trust, showing that good business and better health can coexist.
The post New laws on sugary drinks to impact pubs, bars, and restaurants in England appeared first on Startups.co.uk.
Cyber attacks have been ramping up in 2025, with high-profile businesses like M&S, Harrods and Co-op all being hit. According to the government’s 2025 Cyber Security Breaches Survey, just over four in 10 businesses reported a cyber attack in the 12 months prior to June. […]
StartupsCyber attacks have been ramping up in 2025, with high-profile businesses like M&S, Harrods and Co-op all being hit. According to the government’s 2025 Cyber Security Breaches Survey, just over four in 10 businesses reported a cyber attack in the 12 months prior to June.
If you’re running a small business, it’s tempting to think you might be too modest to be a target for cyber attacks, or you might just find the topic too daunting to address. But having strong cybersecurity is just as important to a business as adhering to GDPR compliance.
Smaller businesses can be an attractive target for cyber-criminals as they can lack the resources and IT infrastructure to effectively defend themselves. The effects of a cyber attack on an SME could be devastating, both financially and reputationally. That’s why we’ve devised our simple, easy-to-follow, cybersecurity checklist to ensure your business is fully prepared.
💡Key takeaways
It’s been noted that over 40% of SMEs have experienced cyber attacks. However, it’s not all doom and gloom, as encouragingly reported cyber breaches from small businesses have dipped this year, with the total figures dropping from 718,000 businesses in the UK in 2024, to 612,000 in 2025.
It’s important to note the reason for this fall though: small businesses are starting to polish up their cyber hygiene. This year has seen a marked increase in small businesses undertaking cybersecurity risk assessments, cyber insurance and continuity plans that specifically address cybersecurity.
So, the threats are still out there, it’s just that businesses are becoming more cybersecurity savvy: just don’t let yourself get left behind. It can be an often overlooked area when you’re starting your business, but one that you should consider and maintain consistently over time.
According to the BBC, the average cost of cyber breaches on UK businesses is £7,960 for micro/small businesses, and £12,560 for medium/large businesses. For many SMEs in the UK, already struggling to manage their overheads, a blow of this nature could potentially cripple them.
To make sure your business doesn’t end up as an unfortunate statistic on next year’s Cyber Security Survey, we’ve provided a breakdown of the three key areas that all small businesses should have in place:
We’ll break down what each one entails, and what you need to do, below.
A company’s security is only as strong as its staff. Even with top-tier online protection, human error can result in cataclysmic consequences. This is how you can create a well-trained staff and develop good cybersecurity habits.
Create strong passwords and have an efficient password manager
Weak passwords that can be easily guessed are a major vulnerability and can give malicious entities access to your data. So get rid of any Password123s, pet names or birthdays. Guidance from the National Cyber Security Centre (NCSC) suggests you should use three random words.
With multiple passwords for different accounts and devices, you should consider making things easier for your staff with a password manager – this a tool that allows you to store multiple passwords behind a master password.
Use multi-factor authentication (MFA)
Simply relying on a standard username and password as a login system is too weak, so you need to add a second “factor”, also known as two-step verification. This can be one of the most effective tools for preventing unauthorised access to your systems and is something all businesses should have in place.
You should be using it across all your business-related platforms, whether it’s bank accounts, social media or email.
Keep on top of access controls
Another key vulnerability that’s often overlooked: which of your employees have access to what? Make sure you have a comprehensive view of access controls and your staff are restricted to what they need.
Extra permissions should only be granted to staff who absolutely require it for their role.
Train your staff on cybersecurity
If your employees are not up to speed on cybersecurity awareness, they can easily fall prey to phishing scams and harmful links. Phishing emails are a type of scam where individuals are deceived into installing harmful malware or giving out data.
Make sure your staff are trained on spotting the signs of phishing emails, like poor grammar and urgent requests for money transfers. These types of scams are becoming increasingly more sophisticated, so make sure to regularly update your staff on what to look out for.
You’ll need to develop a full cybersecurity training module for your business and encourage a company culture of cyber-literacy. You can find guidance from the government on cybersecurity training for your business.
Encourage your staff to report security breaches
Don’t punish your staff for falling victim to a phishing scam. Anybody can fall prey to an online scam and its far more beneficial to your business to create an environment where staff can feel confident about reporting lapses in security.
Have a clear protocol in place, so staff know who to report to. If you believe a staff member was a victim of a phishing scam you should immediately change associated passwords and scan for malware.
Alongside having a well trained workforce and solid internal infrastructure in place, another line of defence against cybercrime should be reliable and up-to-date technology.
Always keep your software updated
Outdared software can leave you vulnerable to attacks and viruses. You need to make sure you’re regularly patching and updating all your software and systems.
Exploitative and dangerous malware is constantly evolving, so you need to make sure your system has the latest protections installed. Make sure to keep all company devices set to “automatically update” where available, and don’t use old hardware that’s no longer supported by current firmware.
Have anti-virus software and firewalls installed
Installing anti-virus software on all business devices is a non-negotiable. Most work equipment will come with anti-virus software pre-installed, but always check if this is case and make sure it’s been enabled.
You’ll also need a firewall installed. A firewall is a network security system that monitors all the incoming and outgoing traffic. It allows traffic based around certain rules and is a must-have for your systems.
Make sure you Wi-Fi network is secure
Make sure you have a unique password in place for your work Wi-Fi and use strong encryption like WPA3. Make sure your physical servers are also secure and kept in a locked area with permitted access.
Another key tip: make sure to change all the default settings and passwords upon setting up. You should also encourage your staff not to log on to public Wi-Fi hotspots. You can use the NCSC’s free cybersecurity checker tool to identify weaknesses in your IT.
Keep all company devices secure
Whether it be laptops, tablets or smartphones, you need to keep any hardware used for company purposes secured. You should do this by making sure all devices are password-protected, and all operating systems and downloaded apps are up to date.
You should also make sure you have a stolen device policy for your business, so your employees know what to do if a device is lost or stolen. Make sure you also have the ability to track devices, as well as remotely lock or erase the device if it falls into the wrong hands.
Ensuring effective data protection for small business is critical. If you suffer a security breach and leak customer information, this could result in irrevocable reputational damage, and potentially legal repercussions and fines.
Use the “3-2-1” rule
One of the most effective strategies for backing up your data, the 3-2-1 backup rule means keeping three separate copies of your data. The three data copies should be kept on two different devices, with at least one of the devices kept off-site. This ensures that you will have access to crucial data in the event of cyber attacks or other technical problems.
Encrypt your data
With increasing focus on cloud-based and remote working, you need to make sure your data has been fully encrypted. Encryption means increased privacy and prevents third-party’s from accessing it. You can use encryption software like Windows BitLocker to protect your data.
Backup your data with cloud storage
Don’t just rely on having physical copies of your data. You should consider using cloud-based storage to back up your data. Just make sure you have selected a provider with strong security protocols in place and a good reputation. It’s worth looking at the government’s cloud security guidance before choosing a provider.
Be careful with USBs
USBs and other types of memory sticks and drives can be a convenient way of transferring data, but it only takes one malware infected drive to harm your entire network. You should encourage your staff to focus on sharing via cloud and email, and restrict use to only company-approved memory sticks.
Properly dispose of old equipment
When getting rid of old, unwanted devices from the workplace never just throw them in the bin. You need to make sure all data has been wiped from the device before disposing of it. You can use software to delete the data or consider hiring a specialist.
Before a data breach even occurs, the best thing is to have already created a clear, simple-to-follow action plan. Your plan should include step-by-step instructions, so you’re prepared for any type of data breach.
The NCSC provides detailed guidance on what to include in your plan. You can also visit Cyber Action Plan to get a free personalised action plan, to help prevent cyber attacks on your business.
If you’ve suffered a data breach, just remember to stay calm and don’t panic. First, you’ll need to identify the extent of the breach, then try to contain it. Determine what has happened, why you think you might have been (or still are being) attacked and assess the scope of the damage.
Once the incident is resolved, you will need to report it to the relevant authorities and stakeholders. With certain incidents you’re required by law to report your cyber attack to the Information Commissioner’s office (ICO) within 72 hours.
One action your business can take is to contact the Action Fraud website. This is the national fraud and cyber crime reporting centre and you can use their site to report the incident. They will be able to advise you on the next step to take.
If you’re suffering from a live cyberattack, you can also contact Action Fraud by phone on 0300 123 2040.
Having strong cybersecurity is more than just about downloading the right software. Rather than flipping on a switch, it’s an ongoing process of developing good habits over time, gaining better understanding of your IT system, and determining the weak spots and danger areas.
While it might all feel a bit overwhelming, there are some immediate steps you can take to make sure you’re headed in the right direction. You should start by:
Taking even these simple steps is an investment in the future of your business and is just as an important safety net as having the right business insurance. Cybersecurity might seem like a headache, but taking the right precautions now is far preferable to dealing with the fallout of an attack or data breach.
The post The essential cybersecurity checklist for UK small businesses appeared first on Startups.co.uk.
Should you skip working your way up and launch a startup straight out of school, or wait until you’ve gained some ‘real-world’ experience? It’s a divisive question that Jeff Bezos himself has weighed in on. In a recent interview, the Amazon founder advised young founders, […]
StartupsShould you skip working your way up and launch a startup straight out of school, or wait until you’ve gained some ‘real-world’ experience? It’s a divisive question that Jeff Bezos himself has weighed in on.
In a recent interview, the Amazon founder advised young founders, particularly Gen Z, to gain work experience before launching their own companies. He argues that time in the workforce will teach you valuable lessons.
There’s a touch of irony, since Bezos himself famously started Amazon with a not-insignificant $250,000 investment from his parents. Still, his point raises an important question for budding entrepreneurs: learn the ropes, or dive in head-first?
“I always advise young people: go work at a best-practices company somewhere where you can learn a lot of basic fundamental things [like] how to hire really well, how to interview, etc.,” Bezos told Italian Tech Week earlier this month, as reported by Fortune.
“There’s a lot of stuff you would learn in a great company that will help you, and then there’s still lots of time to start a company after you have absorbed it.”
He added that working for an established company, instead of immediately starting your own, “increases your odds” of success.
Bezos’ point is that time spent at a well-run company offers a new starter a crash course in leadership, operations, and customer understanding. It’s a lower-risk environment to make mistakes and see how systems actually work, before you’re responsible for building your own.
It’s worth remembering that Bezos has openly said he got a hefty investment from his parents to get Amazon off the ground. That said, even with family backing, professional experience, and an Ivy League education, he’s still had his share of missteps.
Take the 2014 Fire Phone, for example; it ended up costing Amazon $170 million. His career shows that while no advantage guarantees perfection, gaining hands-on experience in a real-world setting can make a difference in knowing how to respond to setbacks.
Then there’s the other path, the clichéd tech founder who didn’t even finish university, yet still went on to make billions.
The stereotype was immortalised by Mark Zuckerberg, as depicted in The Social Network as a hoodie-wearing student who launched Facebook from his Harvard dorm. Fast forward to May 2025, and the Meta chairman is worth $221.2 billion, according to Forbes.
His story, along with similar ‘college dropout’ trajectories such as that of Bill Gates and Steve Jobs, shaped the stereotype of the founder that is young, fearless, and untainted by corporate culture.
It’s easy to be drawn in by this approach. Younger founders often bring energy, fresh ideas, and a willingness to take risks. Without years of ingrained habits or industry biases, they can notice opportunities that others might miss.
And many would jump at the chance to skip the office and focus on their own project, but is it always the best route?
Skipping the “real world” can mean a much steeper learning curve, potential operational blind spots, and a higher chance of burnout. Zuckerberg’s “move fast and break things” motto can be effective, but it loses its appeal when it’s your business or wellbeing on the line.
Many successful entrepreneurs built their foundations elsewhere before starting their own ventures.
For example, Airbnb co-founder Brian Chesky worked as an industrial designer after graduation, while Glossier founder Emily Weiss had a high-profile internship at Teen Vogue. Those experiences gave them insights that later proved invaluable.
It’s also about building resilience. Early wins, like a solid degree or internship, boost your confidence to embark on bigger projects, while overcoming mistakes early on will help you bounce back from larger setbacks.
Roles in startups, consultancies, or tech firms can help future founders develop practical skills, managing budgets, leading teams, and delivering value to customers.
For Gen Z founders, it’s wise to pick a suitable “prep job” that offers insight into transferable skills like smart decision-making, leadership, and how to deal with clients.
Ultimately, there’s no one-size-fits-all. Zuckerberg’s early start and Bezos’ post-30 leap show that routes to success can vary; and both cases show that having helping hands or financial backing certainly also doesn’t go amiss.
The post Jeff Bezos says young founders should work before launching a startup appeared first on Startups.co.uk.
There are a host of countries offering perks for people who want the freedom to work and travel; but Dubai is becoming the destination of choice for UK founders to make home. The latest high-profile move is Nik Storonsky, the co-founder of Revolut. This week, […]
StartupsThere are a host of countries offering perks for people who want the freedom to work and travel; but Dubai is becoming the destination of choice for UK founders to make home.
The latest high-profile move is Nik Storonsky, the co-founder of Revolut. This week, it was reported that Storonsky has left the UK and now lists Dubai as his primary residence.
While there are plenty of options for digital nomads around the world, the tax regime and luxe lifestyle in Dubai seems to be attracting high net worth individuals; as well as ambitious founders.
The key reason for many, according to Forbes, is the Government’s decision to scrap special tax privileges for non-domiciled residents in April. The loophole allowed these residents (whose domicile or home is another country) to avoid UK taxes on overseas earnings for up to 15 years.
In June, Bloomberg reported that the move had sparked an exodus of wealthy individuals from the UK. The news company analysed five million company filings and said that 4400 business leaders had disclosed an overseas move in the last year.
It adds that the projected pace of moves could see the UK “lose thousands of jobs and as much as £12.2bn ($16.5bn) over the coming four years”.
The Government, and some experts, are suggesting this is a gross exaggeration and official figures of the number of those who have left will be published in 2027. The Government says that, instead, the closing of the loophole will bring about £33bn in extra taxes.
Startups magazine has also detailed the fall-out from the Government’s decision to increase capital gains tax (CGT) on the sale of business shares to 14% on their first £1 million of exit cash. This will rise to 18% in April 2026.
Storonsky is Russian by birth but now holds dual British and French nationality. His issue is mooted to be the licensing issues he has faced in the UK when trying to win its UK banking license.
There are other European nations attracting disgruntled entrepreneurs – Cyprus and Monaco among them – but Dubai has a specific appeal.
First of all, there is no personal income tax and corporate tax is also considerably lower than the UK. Businesses pay 9% tax on profits exceeding AED 375,000 (which is around £80,000). Dubai, though, has “free zones”, where the corporate tax rate is 0% on qualifying income.
The state also offers a host of incubator and accelerator programmes, as well as a Golden Visa scheme for long term residence. This reflects Dubai’s bid to diversify away from fossil fuels into sectors like real estate, retail, logistics, and tourism. As a result, there is a burgeoning startup community with entrepreneurs attracted from all over the world.
There are downsides to life in Dubai though. Says one founder in a LinkedIn post, the city can be hyper-competitive for jobs; has expensive office space; a lack of work/ life balance and the cost of education and health facilities can be very high for expat families.
For founders considering a move, the paperwork from the UK tax side isn’t onerous, says barrister Patrick Cannon, who has a pretty negative view of life in the UK at the moment.
Founders need to complete and submit the Form P85 online or can use the residence section of their tax return using the supplementary pages in Form SA 109.
Once a resident in Dubai, founders will not be liable for UK income tax but they will be liable for any income “sourced in the UK”. Some income can be protected if covered by the UAE/UK Double Tax treaty.
There are also implications for inheritance tax; but only if you have been a UK tax resident for fewer than ten years out of the last 20 years. If not, the usual UK taxation rules apply.
If you are considering a move, reach out to a tax advisor for professional advice; and consider your plans for your business in both the short and long term to weigh up the benefits and disadvantages.
The post Why are UK entrepreneurs moving to Dubai? appeared first on Startups.co.uk.
In the world of employment law, there are some issues that even the best human resources (HR) teams can’t fix. And sometimes, those disputes end up in a courtroom. Known as an employment tribunal, this is a judicial body that helps resolve disputes between employers […]
StartupsIn the world of employment law, there are some issues that even the best human resources (HR) teams can’t fix. And sometimes, those disputes end up in a courtroom.
Known as an employment tribunal, this is a judicial body that helps resolve disputes between employers and employees, such as cases of unfair dismissal, discrimination, equal pay and redundancy payments.
Employment tribunals are a serious matter for businesses, as they often end in substantial financial costs, operational disruption and reputational damage.
As a business, you’ll want to avoid employment tribunals as much as possible. However, it’s still important to understand what they are, how they work and how to prepare for them if you ever find yourself in this position.
Below, we’ll explain everything you need to know about employment tribunals, including what’s involved, the type of claims employees make and how to avoid them altogether.
💡Key takeaways
An employment tribunal is a legal hearing between employees and employers, responsible for resolving disputes around employment rights that can’t be resolved internally.
Employment tribunals are run by the HM Courts & Tribunals Service (HMCTS), with hearings held by an employment judge.
According to the government website, there were 37,000 employment tribunals in Q4 2024/25 – 30% of which were single claims, while 70% were multiple claims.
Before the hearing can start, the employee must first contact the Advisory, Conciliation and Arbitration Service (ACAS), which offers early mediation to help resolve a dispute without making a formal claim.
There are several reasons why employees claim in an employment tribunal. These include:
Law changes for employment tribunals
Following the UK government’s Employment Rights Bill – which is expected to become law either in 2026 or 2027 – there are some significant changes that have been enforced in the employment tribunal process. They are as follows:
There are also further changes that the government wants to enforce under this law. These include:
Employment tribunals involve hearing from both parties to determine exactly what happened and applying legal tests to determine if a “relevant failure” (e.g. unfair dismissal, discrimination, etc) has occurred before deciding whether the employee’s rights have been violated.
The possible outcomes of an employment tribunal can either be decided before a full hearing or after.
If the tribunal decides not to proceed with a full hearing, the outcome could be:
On the other hand, if the case proceeds to a hearing, the tribunal’s decision will either dismiss or uphold the claim.
The process of an employment tribunal is designed to be straightforward and fair for both parties. Here’s what the process typically looks like and what you can expect.
As mentioned above, the claimant must first contact ACAS for early conciliation. They must inform them of their intent to make the claim, usually within three months (minus one day) from when the problem first arose.
From there, an ACAS mediator will work with the employee to resolve the dispute without the need for a tribunal. The conciliation period can last up to six weeks.
If a settlement is reached, it is recorded in a COT3 agreement. However, if there isn’t a settlement, ACAS will issue an early conciliation certificate, which includes a unique reference number that must be used to proceed to the next stage.
The claimant formally submits their claim to the employment tribunal with an ET1 form within the time limit. The tribunal then reviews the claim and, if accepted, a copy will be sent to the employer.
Once you have received the ET1, you will have 28 days to submit your defence with an ET3 form. With this, you are expected to detail your version of events and why you are denying the employee’s claim.
If you fail to respond to the claim within this time period, the tribunal may automatically judge in favour of the claimant.
This stage is all about preparing the case for the final hearing and is often where most cases settle. Here’s what you can typically expect in this phase:
Once both parties have submitted their documents, the employment judge will review them and issue case management orders (CMOs).
Put simply, these are timetables and instructions that set out deadlines to complete specific tasks in the case – such as disclosing documents or witness statements – so that both parties are prepared for the hearing.
In some cases, an employment judge may hold a preliminary hearing, which takes place before the main hearing. These are less formal than the main hearing and are often conducted via phone or video link.
There are two types of preliminary hearing – case management preliminary hearing (CMPH) and preliminary issue hearing (PIH).
A CMPH sorts out the practical details, such as setting deadlines for when documents need to be shared, deciding how long the main hearing will take and checking if any witnesses will be called. It also ensures the case is fully prepared for trial, and involves the employment judge issuing CMOs for both parties.
On the other hand, a preliminary issue hearing (PIH) deals with any important legal issues that could affect whether the case goes ahead. For example, whether the claim was made in time, if the claimant was actually an employee or self-employed, if part of the claim should be struck out, or whether the claimant has a disability under The Worker Protection (Amendment of Equality Act 2010) Act 2023.
A schedule of loss is a document that details the financial compensation the claimant seeks from an employer’s unlawful actions. It also lists the specific types of losses the claimant has faced – such as wages, holiday pay and workplace pensions – and any supporting documents that prove the losses claimed.
This helps the employment tribunal understand the full financial impact of the employer’s actions and determine the compensation owed.
The employer can also provide a counter-schedule of loss to respond to the claimant. Its purpose is to dispute the amount of compensation the claimant is seeking (often by explaining why the figure is incorrect, too high or shouldn’t be paid). It also sets out the employer’s own calculation of what they believe the claimant is entitled to, which is typically lower (if anything at all).
The final hearing is either held individually by the employment judge, or with two additional lay members – one that represents the employer (e.g. a HR professional) and one representing the employee (e.g. a trade union representative). The final hearing can either take place in person or online.
Here’s a breakdown of the typical process:
After the hearing has finished, the tribunal will either state its decision on the day or issue a reserved judgment in writing shortly after.
In the event of an employment tribunal, it’s crucial to be as prepared as possible. Here are a few things to consider:
While there aren’t specific figures on how many tribunals are won by employers or employees, research by ACAS found that 77% of employment tribunal cases didn’t go on to have a hearing between January and March 2025.
However, when hearings do take place, the tribunal will simply judge in favour of the employer or the employee.
If you win the tribunal, the employee’s claim will be dismissed. This means that you will not be required to pay compensation to the employee or fulfil any remedies for them.
However, keep in mind that the employee has the right to appeal to the Employment Appeal Tribunal (EAT) within 42 days of the written judgment. That being said, they can only do so if they believe the employment tribunal made a legal mistake – not because they’re unhappy with the outcome.
On the other hand, if the employee wins the tribunal, you will be required to take certain action. For example, paying the requested compensation, reinstating the employee to their job or making specific changes to your workplace. You will also have 42 days to appeal the decision.
The consequences of losing an employment tribunal mean you’ll face financial losses, corrective non-financial orders, and potentially serious operational and reputational damage.
The most common financial penalties include:
Beyond financial penalties, preparing for an employment tribunal means that your HR team, managers and employees will have to focus their attention on the case, leading to disrupted workflows, reduced productivity and less employee engagement.
Moreover, as employment tribunal hearings are generally open to the public, there’s a serious risk to your reputation – especially if the tribunal gets covered by the media. This can make it difficult to attract and retain talent, as well as damage customer retention and relationships.
Given how detrimental employment tribunals can be both financially and reputationally, it’s important to try and avoid them as much as possible.
The obvious answer is to make sure you never put employees in a position where they need to take you to a tribunal. Therefore, you should follow these practices:
Employment tribunals can be stressful, time consuming, and expensive for employers – both financially and reputationally.
While sometimes unavoidable, most disputes can be prevented with fair treatment, clear policies and strong communication. This can help reduce the risk of claims being brought against your business.
And if a tribunal does arise, being well-prepared and cooperative throughout the process can help you achieve the best possible outcome.
Also, having a fair and supportive working environment isn’t just about avoiding tribunals, but building a more engaged workforce and a favourable reputation as a responsible employer.
The post What is an employment tribunal and how does it work? appeared first on Startups.co.uk.
Building a company with business partners is a lot like raising a kid with your life partner. Although the stakes are not the same, the base elements are very much alike. In the same way as co-parenting, a business partnership needs to be built on […]
StartupsBuilding a company with business partners is a lot like raising a kid with your life partner. Although the stakes are not the same, the base elements are very much alike.
In the same way as co-parenting, a business partnership needs to be built on trust. You have to depend on each other during times of uncertainty, make decisions that affect the whole “family”, and (even when you are not totally in agreement) stay on the same level.
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The disagreements will always be there, but it is how you deal with them that will be the strength of the relationship. You learn the skills of expressing your thoughts, delegating tasks, sharing the responsibility, and providing each other with encouragement without losing sight of the common goal.
There is also the aspect of roles. Each parent might handle different tasks depending on their strengths, but both are equally engaged in the child’s welfare. It’s the same in business.
Yes, everyone is doing different things. But they’re also positive about the company’s growth in a way that warms and complements each other. The focus is not on workloads being shared in an equal manner. It’s the equal commitment that matters.
One of the clearest similarities is the long-term view, which is necessary to create something that lasts. With children, it is about building virtues, supporting progression, and preparing them to face the world.
With startups, it is about instilling culture, working on systems, and giving a product or service that can grow even after the founding team has left. In both situations, short-term wins matter a lot, but the final goal is to be sustainable and have an impact.
We started MAGIC AI from zero. Like parenting, it took a leap of faith. And funnily enough, those early days were both messy, emotional, and full of surprises. There were times when we were lacking sleep, making high-stress choices, and doubting everything.
However, I can say firsthand that when you get to witness those first indications of success, like a first product launch or customer, it is very gratifying. Not because the road was smooth, but because it was made by you, together.
About Varun Bhanot
Varun Bhanot is Co-founder and CEO of MAGIC AI, the cutting-edge AI mirror that makes high-quality fitness coaching more accessible. Under his leadership, MAGIC AI has raised $5 million in venture funding and earned multiple industry accolades — including being named one of TIME’s Best Inventions of 2024. As a new father as well as founder, Varun shares candid insights on balancing parenting and entrepreneurship in his bi-monthly guest column, Startup Daddy.
The post What parenting together taught me about business partnerships appeared first on Startups.co.uk.
UK high streets face a critical moment, Co-op has warned, stating that without reform business rates will continue to cripple businesses. Citing new research, the supermarket giant is claiming that the UK could see 60,000 small shops and 150,000 jobs disappear if radical change doesn’t […]
StartupsUK high streets face a critical moment, Co-op has warned, stating that without reform business rates will continue to cripple businesses.
Citing new research, the supermarket giant is claiming that the UK could see 60,000 small shops and 150,000 jobs disappear if radical change doesn’t happen and fast.
The company has launched a campaign called On Your Corner, In Your Corner, a key message from which is for the Government “…to finish the job and deliver maximum support to protect high streets and local communities.”
The Co-op study reveals the extent of the issue with 77% of small high street shop owners in England. It says that business rates reform is paramount if they are to continue operating.
If reforms are not delivered, 10% of small high street business owners say they would need to lay off staff, and one in eight state that they would be at risk of closure.
While the report takes in a wide range of high street SMEs, the overriding message of pessimism about the future and fear is one that the hospitality industry has been reporting for many months.
The Co-op Big Survey revealed that 67% of those taking part believe their high street is dying and 78% say it’s worse than five years ago. With many of these businesses working in hospitality, it is unsurprising that this group has the lowest confidence of all sectors.
Our research in January recorded a 10% dip in confidence among hospitality business owners; and since, fears have been compounded by job losses in this sector as the NICs hike and rising costs bite.
As well as gathering views from business owners, Co-op gauged views on the role local shops play within communities.
It quotes YouGov research that reveals that 56% of UK adults – more than 30 million people – see local shops “as important to their wellbeing”. Without them, 74% of those interviewed argued that “…their community would lose part of its identity”.
Shirine Khoury-Haq, Co-op Group CEO, said: “As we approach a critical Autumn Budget, there’s a real danger that the voices of small shops – and the communities they serve – are not being heard.”
She added: “Local shops aren’t just businesses; they’re part of the social fabric of Britain. For some, a visit to a local store is one of the few chances they have to chat to someone and feel connected.”
The report confirms that many SMEs, and especially those in the hospitality sector, are awaiting the Autumn Budget with bated breath.
The Employment Rights Bill, and specifically changes to zero-hours contracts – are already in the headlines; but it is business rates that many businesses are hoping for some good news on. Co-op is calling for “maximum levels of relief” and argues that if high street businesses disappear, communities will too.
However, the Co-op report says that seven in 10 Brits “…doubt the Government will deliver on relief”. As the November Budget approaches, this figure suggests that pessimism is quickly turning to despair.
The post Co-op warns 150,000 jobs at risk without business rates reform appeared first on Startups.co.uk.
TikTok Shop has today announced the launch of Shop Local, a support scheme to help British SMEs harvest demand for homegrown goods by using the platform to reach new audiences. The social media platform has become a go-to for SMEs with its easy to use […]
StartupsTikTok Shop has today announced the launch of Shop Local, a support scheme to help British SMEs harvest demand for homegrown goods by using the platform to reach new audiences.
The social media platform has become a go-to for SMEs with its easy to use features and the simple draw that it is currently growing four times faster than the overall ecommerce market.
However, this latest bid to attract businesses sees the social media behemoth focussing on connecting them to their local customer base; and reflects a growing desire by Britons to support the businesses on their doorsteps.
The scheme will see five local British businesses receive a support package worth £150,000 to get them up and running on TikTok Shop.
It includes hands-on guidance from TikTok Shop experts to get started on the platform; mentorship for staff members on how to grow sales on TiKTok Shop and also training for the whole business on how to sell through TikTok LIVE.
The winners will also get subsidised marketing support to get their products to the right audience; and Featured promotion across TikTok Shop to increase their reach.
The scheme, which is being fronted by farmer, conservationist and TikTok star Jimmy Doherty, includes “introductions to TikTok creator” but also, interestingly, “PR and marketing support from TikTok to promote their business off-platform”.
The scheme – which will no doubt be hotly contested – comes at a time when TikTok is reporting an increased desire by British customers to support their local businesses.
According to data from Research Without Barriers 83% of UK adults would be more likely to buy British produce if it was more widely available. Three in four (75%) of respondents said that they prefer locally sourced products over imports.
TikTok is hoping to tap into this swell of support by showing businesses how to use its platform to connect with – and retain – customers.
Jan Wilk, Head of TikTok Shop UK, said: “We know that the current economic climate can be challenging for small British businesses, with many experiencing a mixed financial picture.
“Smaller businesses don’t need huge followings or big budgets to be seen – if you have a great British product, the For You Feed is your place to shine and find viral success, with your products and businesses able to be discovered by millions.”
To put themselves forward, SMEs must be a British business; and selling locally produced goods. There is no stipulation as to what these goods must be.
However, businesses cannot already be trading on TikTok Shop and must have less than 250 employees.
To enter, the business just needs to “create and share a TikTok video demonstrating their offering to their local community, which includes the #ShopLocalComp hashtag and tagging @TikTokShop_UK, between October 14 and November 13”, explains TikTok.
The social media platform adds that the winners will be contacted by December 12.
With all marketing, watching what lands views and translates to sales is essential; and this is easy even without a hefty financial pot from TikTok.
For the businesses that don’t get selected, we have guides on how to get started with your TikTok marketing; including how to set up an account; what to post, and what metrics to watch.
The post TikTok Shop launches £750k scheme for local sellers appeared first on Startups.co.uk.
Measures to allow hospitality businesses to extend their opening hours and revive local nightlife are being pushed forward by the Government; but they are being met with both scepticism from within the industry and concern from without. The National Licensing Policy Framework being proposed by […]
StartupsMeasures to allow hospitality businesses to extend their opening hours and revive local nightlife are being pushed forward by the Government; but they are being met with both scepticism from within the industry and concern from without.
The National Licensing Policy Framework being proposed by the Government will see sweeping changes to rules about dining outside (and managing noise complaints) as well as closing times.
The framework has now gone to a consultation and businesses have four weeks to make their views known.
The review is focussed upon “cutting red tape” and “boosting footfall” to boost the beleaguered hospitality industry and support the UK’s economic growth, says Prime Minister Keir Starmer.
The Government describes the framework as “ a pro-growth vision for licensing reform” and says that it is a much needed update to the Licensing Act 2003 which has, “…over time, become diluted by disproportionate regulation and inconsistent application”.
As well as rethinking details like the currently mandatory printed statutory notices for alcohol licenses; it also includes proposals to increase the number of temporary event notices venues can apply for; reforms to business rates and cuts to the cost of licensing.
The news has been welcomed by the many in the industry. “Pubs are faced with continued rising costs, placing them under enormous pressures which is why the government must continue to back the sector, including critical reforms on business rates which would unlock opportunities for pubs to invest and help drive economic growth,” Nick Mackenzie, chief executive at Greene King, told BBC News.
However, with the confidence levels in the hospitality industry tanking, some are arguing that reform needs to be more drastic.
George Holmes, Managing Director of business finance experts Aurora Capital, says that cutting red tape for pubs is “a step in the right direction”. However, there are huge issues that need addressing.
He explains “…longer hours won’t solve deeper problems. Pubs are still struggling with high energy costs, rising wages, and unfair business rates.” These problems are being felt across the board but, he argues, it is a time when many independent businesses fear the future.
“If this government is serious about supporting local pubs, these changes should be accompanied by practical support, guidance, streamlined licensing processes, and fair funding for local authorities to handle applications. Without that, small venues will still be left waiting while the big players reap the rewards,” he states.
Campaign for Pubs has reacted furiously stating that pubs don’t actually want longer operating hours as they simply can’t afford it.
“The reality is that as a direct result of the Government’s disastrous cost hikes in the last Budget, many pubs have had to reduce opening hours and cut staff numbers and hours”, writes the organisation in a press release.
“Allowing most pubs to stay open longer is completely meaningless, when already pubs are shutting earlier than usual just to reduce costs and stay afloat,” it states.
Debate is also raging as to whether longer opening hours could have a negative impact on both antisocial behaviour and serious crime. In an article in The Guardian, Katherine Severi, the chief executive of the Institute of Alcohol Studies thinktank, said that the changes would “allow an open all hours free-for-all in the availability of alcohol”.
“These proposed reforms, developed without adequate input from policing, ambulance services, local licensing authorities, health experts or citizens are a charter for chaos,” added Dr Richard Piper, the chief executive of the charity Alcohol Change UK to the newspaper.
While some aspects of the reforms – notably cutting red tape and therefore administrative load on businesses – have been welcomed; there is an overriding feeling that this is not the complete solution.
SMEs, in particular, are riding the storm caused by NICs hikes and rising costs. Opening for longer might not even be within their capabilities, nor organising live music events.
While there is consensus that some of the suggestions could drive footfall and growth; this consultation period will also see many raising concerns from both within the industry and wider society.
The post “More needed”: hospitality reacts to pub licensing review appeared first on Startups.co.uk.