In a significant move, venture capitalists have invested in Valla, a firm dedicated to addressing workplace disputes, ahead of anticipated increases in claims due to Labour’s commitment to bolstering employment rights.

Danae Shell, the co-founder and CEO of Valla, based in Edinburgh, has successfully secured £2 million from investors such as Ada Ventures, Active Partners, and Portfolio Ventures, alongside existing support from the Resolution Foundation, a think tank focused on social justice.

This funding will enable Valla to enhance its range of services that empower employees, particularly those in median to low wage jobs, to advocate for themselves in workplace conflicts, from preliminary discussions to employment tribunal representation.

Shell highlighted that with the introduction of new employment rights from autumn 2026, including the provision for unfair dismissal from day one, many employees will feel more confident in standing up to their employers rather than simply resigning.

“There’s a shift where individuals will transition from thinking ‘this isn’t fair’ to ‘I can take action here,’” Shell commented, emphasizing the misconception that employees with less than two years of service possess no rights and can be dismissed at will.

“This is incorrect. There are numerous rights available, but unfair dismissal and constructive dismissal rights, which are pivotal, were not recognized until now. Labour’s decision to lower those rights to a day-one standard will help correct that misunderstanding, leading to an uptick in inquiries about legal recourse,” she added.

Valla is focused on assisting those earning up to £37,000 annually. Since its inception in 2022, over 12,000 users have turned to Valla for support. Shell stated, “Our platform provides a way for individuals to tackle legal issues where conventional pathways to justice are inaccessible.”

While some offerings, such as meeting summaries, are provided free of charge, other services require a fee. On average, the cost to reach a settlement is approximately £200, while pursuing a case to a ruling in an employment tribunal can amount to around £500. A grievance letter costs £10, an hour of legal advice is priced at £90, and assistance with tribunal form completion and review is available for £100.

“The majority of our users settle and are able to represent themselves during settlement discussions with their employers,” Shell noted, adding that feedback indicates users feel empowered to make informed decisions, even if they ultimately choose to abandon their grievance.

As a participant in the national user group for the employment tribunal service across England and Wales, Shell remarked that organizations like Acas, which provides dispute resolution, alongside the tribunals themselves, are bracing for an influx of inquiries regarding constructive and unfair dismissals. Civil servants involved with the tribunal service anticipate that upcoming employment rights legislation will have a meaningful effect on operations in the next year, as indicated in the user group’s January meeting minutes.

Shell pointed out that while employers, particularly small and medium-sized enterprises, receive guidance on employment law, employees navigating disputes often find the system challenging. With union representation declining, many turn to services like Citizens Advice and Acas for help, which can be limited in scope, with traditional law firms often proving too pricey.

For instance, Shell described a scenario where an employee misses out on their monthly salary, possibly around £3,000. When they approach a law firm for assistance, they are often told it would require about £5,000 to handle their case, highlighting the disparity.

Additionally, Valla facilitates tribunal support networks so that employees can connect with others undergoing similar challenges, a process that can be lengthy; current claims may see hearings as late as 2027, with preliminary hearings taking place in six to eight months. “This can be an isolating process,” Shell concluded.