Tribunals...
A close friend of mine is a GP, and he is going bankrupt (and his practice) over his decision to remove a salaried doctor that he inherited with the practice. This person is lackadaisical, dishonest, and provably took maternity leave at full rate WHILE working 20 hours a week at a competing medical practice! Then she claims a fifth week of holiday with pay - despite having only 4 weeks in her contract!
So he initiated dismissal. It has dragged on over a year now - with she and her lawyers deploying every trick in the book. She claimed TWO types of discriminations (she is a minority, and a mom!), and then claimed that my friend's medical practices were against code. So, the medical council orders an investigation by an outside doctor..which my friend easily wins. But HE has to pay for the investigation - at £15,000! What does she do - she raises MORE allegations, and appeals - another cost of £15,000 to him for the appeal! Which he wins, but he has just lost £30,000 in income for the year. He fires his cleaner, cancels his gym, and sells his car.
The saga is not yet over, as an employment tribunal has refused to hold against her because - get this - "we believe that she stole from the practice by taking the extra holiday which is clearly not in her contract, but to dismiss her would MAKE HER UNEMPLOYABLE IN MEDICINE WHICH WE FEEL IS TOO HARSH." So my friend lost his dismissal, still has her on the books getting paid, and NOW must pay her legal fees - about £20,000. And after all that, he will in the end have to pay her to leave - probably 6-12 full months of salary to reach a compromise agreement.
THIS is what employers fear - it's not that they really, really want to discriminate and eek out a few extra quid (by and large). It is the impossibility of even removing someone that is provably dishonest, and detrimental to your business - but who can claim "DISCRIMINATION" at the drop of hat - which now is everyone that is NOT male, white, and straight.
Frankly, having watched this whole saga unfold this past year...I just don't see much hope for English small business...