A legal tech startup helping workers represent themselves in employment disputes has secured £2 million in fresh funding, as investors prepare for a likely surge in workplace grievances under the Labour government’s incoming reforms.
Valla, the Edinburgh-based platform founded in 2022, has been backed by venture capital firms Ada Ventures, Active Partners and Portfolio Ventures, alongside social justice think tank the Resolution Foundation. The startup’s services are designed to support employees earning the UK’s median wage (£37,000) or less who face challenges such as unfair dismissal, withheld pay or workplace discrimination.
Co-founder and CEO Danae Shell (pictured) said the funding would be used to expand Valla’s suite of low-cost legal tools in anticipation of a significant uptick in employee claims from autumn 2026, when Labour’s new employment rights are expected to come into force.
A key driver behind the expected rise in cases is Labour’s pledge to make unfair dismissal rights available from the first day of employment — a significant shift from the current two-year qualifying period.
“Right now, there’s a widespread belief that if you’ve worked for a company for less than two years, you can be sacked for any reason,” said Shell. “That’s not legally true, but the change to day-one rights will help correct that misconception — and crucially, give more people the confidence to act when they feel something isn’t right.”
Valla’s services include everything from drafting grievance letters to preparing tribunal applications, with pricing designed to be accessible. A letter costs £10, a full tribunal form review is £100, and support through to settlement typically comes in at around £200. Taking a case all the way to a tribunal ruling costs roughly £500 — a fraction of the legal fees charged by most solicitors.
Shell added that most cases do not end up in court: “The majority of our users settle directly with their employer — but they feel empowered knowing their rights and being prepared.”
Shell is also a member of the national user group for employment tribunals in England and Wales, where government agencies including Acas and tribunal staff themselves have expressed concern about rising case volumes. According to minutes from the group’s most recent meeting in January, civil servants expect the changes to “significantly impact” caseloads by next year.
Cases already face severe delays: new tribunal claims lodged today are not expected to be heard until 2027, with initial hearings taking six to eight months to schedule. Shell believes this reinforces the need for alternative forms of access to justice.
“Employees often struggle to get legal help that is affordable or timely,” she said. “Law firms are priced out of reach — if you’re owed £3,000 in unpaid wages, and legal fees are likely to exceed that, it’s simply not worth it for most people.”
Valla has already helped over 12,000 users access guidance or services since its launch. As well as legal support, the company has built online communities to allow claimants to connect with others going through similar processes, helping to ease the emotional toll of often drawn-out disputes.
With union membership and legal aid in decline, Shell sees an urgent need to rebalance the playing field between employers — who often have access to HR teams or legal advice via trade bodies — and employees, who may be isolated or under-informed.
Investors appear to agree. Valla’s model of scalable legal support, using both technology and community-based support systems, offers a potential template for how employment disputes might be handled more affordably in future.
With the Labour government poised to implement its promised New Deal for Working People, Shell says demand is only going to rise. “We’re building infrastructure for a world in which more people will feel able to ask: ‘Was that legal? Can I do something about it?’ And the answer, increasingly, will be yes.”
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Valla raises £2m as venture capital backs boom in employment rights claims
