The Rise In Employment Tribunal Claims

Employment Tribunal claims have risen sharply in recent years. This has been driven by increasing employee awareness of workplace rights, ongoing economic pressures and a rapidly evolving employment law landscape.

The latest Ministry of Justice statistics suggest that the tribunal system is under significant strain, with growing caseloads and lengthy delays becoming an increasing concern for employers and employees alike.

Rachel Mills, Managing Associate in our Employment Law team based at our Derby office, explains what is driving the increase in Employment Tribunal claims and what employers can do to minimise the risk of disputes arising in the future.

The Employment Tribunal stats

The latest Ministry of Justice tribunal statistics for the financial year ending March 2025 show:

• Around 42,000 single Employment Tribunal claims were received during 2024/25, representing a 23% increase compared with the previous year
• Single claim disposals increased by only 6%, meaning claims are entering the system much faster than they are being resolved
• The number of open single claims reached approximately 45,000, a 32% increase year-on-year
• Multiple claim receipts also increased by 23%, while disposals of multiple claims fell by 49%, contributing to an open caseload of approximately 446,000 multiple claims

These figures highlight the growing pressure on the tribunal system. As claims continue to outpace disposals, employers and employees are increasingly facing lengthy waits for hearings, prolonged uncertainty and rising legal costs.

What is driving the increase?

Greater awareness of employment rights

Employees are now far more informed about their legal rights than ever before. Increased access to legal information, social media, trade unions and specialist employment advisers has encouraged more inpiduals to pursue claims where they believe they have been treated unfairly.

The mandatory ACAS Early Conciliation process also encourages employees to seek advice and consider their legal options before commencing tribunal proceedings.

Increased use of AI

The increasing use of AI may also be playing a role. Employees now have access to AI-powered tools that can quickly provide information about employment rights and help draft workplace correspondence. Large language models make employment law issues more accessible and potentially increase confidence in pursuing complaints or Employment Tribunal claims.

Cost of living pressures

Financial pressures continue to play a significant role. Employees who lose their jobs or experience reductions in pay are often more likely to challenge dismissals, unpaid wages or breaches of contract where compensation may help offset financial hardship.

Growth in discrimination claims

Discrimination claims continue to represent a significant proportion of tribunal litigation. Disability discrimination, in particular, has risen substantially, driven by increasing recognition of mental health conditions and employers’ obligations to make reasonable adjustments.

The removal of tribunal fees

Following the abolition of Employment Tribunal fees in 2017, access to the tribunal system became significantly easier. Although fees had previously reduced claim numbers dramatically, their removal restored access to justice and contributed to the steady increase in claims seen over subsequent years.

Legislative change

Significant changes to employment law are being introduced over the coming years, many of which expand employee protections and workplace rights. As new obligations take effect, employers are likely to face increased scrutiny and, potentially, a rise in workplace disputes and tribunal claims where businesses fail to adapt their policies and practices accordingly.

The Employment Rights Act 2025 is likely to further increase claims.

The growing tribunal backlog

Many cases are now taking well over a year to reach a final hearing, depending on the complexity and location of the claim.

In our experience, some cases are already being listed for final hearings in 2028. Such delays raise legitimate concerns regarding access to justice and increase uncertainty for all parties involved.

Longer delays create difficulties for everyone involved:

• Witness memories fade
• Key employees may leave the organisation
• Legal costs increase
• Settlement negotiations become more complicated
• Businesses face prolonged uncertainty

What employers can do, and how employment law solicitors can help

Although some disputes are unavoidable, many tribunal claims can be prevented through good employment practices.

Employers should consider:

• Regular training for managers on employment law and people management
• Maintaining robust disciplinary and grievance procedures
• Ensuring consistent and well-documented performance management processes
• Keeping policies and employee handbooks up to date
• Engaging with employee concerns at an early stage
• Making meaningful use of mediation and ACAS Early Conciliation before positions become entrenched

Employers should increasingly view employment law compliance as a risk management issue rather than simply an HR function. Early intervention often prevents relatively minor workplace concerns from escalating into costly and time-consuming litigation. Our Employment Law for Employers team can review your policies and procedures to help reduce risk.

Careful documentation, fair decision-making and clear communication remain the strongest defences should a claim arise.

Looking ahead

The increase in Employment Tribunal claims shows little sign of slowing. Combined with significant case backlogs and ongoing legislative reform, employers face an increasingly complex employment law environment.

My view is that prevention is becoming increasingly valuable as the tribunal system becomes busier, slower and more complex. While some disputes will inevitably proceed to a full hearing, many can be avoided through proactive management, effective policies and early resolution strategies.

Where litigation cannot be avoided, careful preparation from the outset is more important than ever. Given the length of time many cases now take to reach a hearing, early evidence gathering, witness preparation and strategic case management can significantly strengthen an employer’s position.