How we calculated it
We spread published penalties, modelled tribunal costs and settlement payments across the 23.464 million people employed by UK private-sector employer businesses (DBT, 2025). The table shows the annual amounts behind the calculator.
| Risk and source | Annual amount used | Per person |
|---|---|---|
| Right to WorkH1 2026, annualised | £149.2m | £6.36 |
| Minimum wage2024/25 penalties | £4.2m | £0.18 |
| Workplace pensions2024/25 notices issued | £19.2m | £0.82 |
| Health and safety2024/25 fines; conservative floor | £33m | £1.41 |
| Tribunal dispute costs2025/26 single claims; modelled | £350.1m | £14.92 |
| Settlements and compensation2018/19 model; Acas report, 2021 | £225m | £9.59 |
Right to Work annualises January–June 2026 penalties. Tribunal costs multiply 50,704 claims by £6,905.70 for employer time and legal advice, from a government impact assessment (paragraph 10.31) in 2024 prices. Applying its harassment-case assumption to all single claims is illustrative. Settlements and compensation use Acas’s separate 2018/19 model, excluding handling costs.
What this estimate does and does not tell you
Most employers receive no regulatory fine; serious incidents can cost much more. This benchmark includes businesses with good HR. It cannot isolate those without adequate support or predict how much a consultancy will save.
Sources mix years and UK/Great Britain populations, include some public-sector activity, and are not inflation-adjusted. The denominator includes working proprietors; issued penalties may change.
Other costs good HR can help address
Acas’s 2021 research estimates workplace conflict costs employers £1,028 per employee annually, using 2018/19 data. This broader figure includes staff turnover, absence, lost productivity and HR or management time. Some costs are unavoidable, so it is not a potential saving in full. We include only its separate settlement and compensation estimate to avoid double-counting handling costs. Wage arrears, pension contributions and reputational damage remain excluded.
Where should you start reducing avoidable HR costs?
- Check that contracts, recruitment checks and pay processes match how people actually work.
- Give managers clear routes for absence, performance concerns and employee complaints.
- Address problems early and keep records of the evidence, support and decisions.
Adept HR can help prioritise those gaps rather than treating the calculator figure as a budget you will definitely recover. Our fixed-fee HR package guide explains how to compare the cost and scope of support. The employer retains its legal responsibilities.