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The Real Cost of Avoiding Difficult Conversations

Dipti-2

This article was published in the May/June 2025 edition of London Business Matters.

In the evolving landscape of Employment Law, one of the most overlooked risk management tools remains having timely, honest and evidence-based conversations. Employers and their managers who shy away from addressing performance issues, interpersonal conflicts, or inappropriate behaviour may find themselves not only presiding over a dysfunctional workplace – but also facing costly employment tribunal claims.

At the heart of many legal disputes lies a missed opportunity: the chance to address an issue when it first emerged. Whether it’s concerns around an employee’s capability, conduct, or fit within a team, early intervention – when handled correctly – can defuse tension, provide clarity, and create a constructive path forward. Crucially, it can also demonstrate that an employer acted reasonably, a central test in many legal claims.

Delaying these conversations, often out of discomfort or fear of confrontation, can send the wrong message. Employees may feel blindsided by sudden disciplinary action or formal procedures, particularly if they were never made aware of concerns informally. This perceived unfairness can become the seed of future grievances, claims of discrimination, or unfair dismissal cases.

From a legal perspective, employers may be able to prove they have a fair reason for any formal legal action however, tribunals will also examine whether the employer followed a fair process, and the employee treated fairly and reasonably. Was there open communication? Was the employee given a chance to improve or respond? Early, documented conversations – rooted in professionalism rather than blame – can become vital evidence that the employer acted appropriately.

So why do managers avoid difficult conversations?

Having practised Law for over 25 years, I’ve supported countless businesses with costly tribunal claims many of which may have been avoided if managers had embraced having those initial difficult conversations.

Below are some of the most common reasons managers avoid difficult conversations:

  1. Fear of conflict or damaging relationships
  2. Not knowing where to start after they have let concerns slide
  3. Lack of time and capacity
  4. Fear of creating a legal claim
  5. A culture of blame creating a fear of finger pointing

Training managers in conversation frameworks, emotional intelligence techniques, and a working understanding of employment law principles is essential if they are to feel empowered to manage situations fairly and confidently. It is well worth the investment and may just save your business a costly tribunal claim further down the line.

If you would like to get in touch about our employment law offerings, please contact us via the form below.

Dipti Shah

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