Employment tribunal claims in the UK are rising sharply, according to the latest Ministry of Justice statistics for April 2024 to March 2025. The data highlights a growing backlog and increasing pressure on employers, emphasising the need for proactive measures to avoid costly disputes, particularly with the Employment Rights Bill (ERB) expected in 2026.
During 2024/25, tribunals received 42,000 single claims, a 23% increase from the previous year. Of these, 32,000 were disposed of, leaving 45,000 live claims at the end of March 2025, up from 33,000 the previous year. Even minor procedural errors, such as failing to provide proper notice or a fair hearing, can now result in costly claims. For example, a retail worker dismissed after six months for poor performance would not usually qualify to bring an unfair dismissal claim under current law, unless the dismissal related to a protected reason such as discrimination or whistleblowing. However, if the Employment Rights Bill passes in its current form, workers with under two years’ service could gain that right, making procedural fairness critical even at the early stages of employment.
Multiple claims, where several employees bring claims arising from the same circumstances, are also increasing. In 2024/25, 2,400 lead multiple cases were received, representing 73,000 individual claims, up 23% from 2023/24. Only 2,100 lead cases were disposed of, covering 37,000 claims, a 49% drop from the previous year.
Open multiple lead cases reached 6,800, representing 446,000 live claims, up from 410,000. Large-scale organisational decisions, such as redundancies, can trigger dozens or even hundreds of claims if employees perceive selection criteria as unfair or consultation procedures as inadequate, creating a significant financial and administrative burden.
Unfair dismissal, breach of contract, disability discrimination, and unlawful deductions from wages accounted for roughly 60% of all claims. The last quarter of 2024/25 alone saw 37,000 new claims, nearly 50% higher than the same period in 2024, showing that employers are increasingly vulnerable to disputes, particularly when processes are inconsistent or poorly documented.
The Employment Rights Bill, set to take effect in 2026, is likely to increase tribunal caseloads further. The government originally proposed making unfair dismissal a day-one right, removing the current 2 year qualifying service requirement but amendments in the House of Lords now propose a six-month qualifying period instead, alongside a statutory probationary framework of up to nine months. There is also discussion about extending time limits for employees to bring claims, although the detail is still being finalised. For example, a worker who resigns after two weeks due to an allegedly unsafe work environment could soon have greater scope to file an unfair dismissal claim, potentially raising claim volumes in industries with high staff turnover or short-term employment.
Employers can take several proactive steps to mitigate these risks. Maintaining up-to-date policies and procedures ensures compliance with current employment law. Employee handbooks should clearly outline disciplinary processes, grievance procedures, and performance management to prevent misunderstandings or claims of unfair treatment. Applying fair and consistent procedures is equally important. Objective performance metrics, clear documentation, and transparent decision-making help reduce claims of bias, discrimination, or procedural unfairness.
Training managers and HR staff is essential to prevent disputes. Managers who understand discrimination law, grievance handling, and employment law compliance are better equipped to manage sensitive situations and reduce the risk of claims. Detailed documentation of meetings, performance reviews, disciplinary actions, and correspondence provides evidence of fairness and compliance if disputes arise.
Early intervention is another critical strategy. Addressing potential conflicts promptly through mediation or informal discussions can prevent escalation to formal tribunal proceedings. Seeking legal advice at the first sign of a potential dispute ensures actions comply with legal requirements and reduces the likelihood of claims.
By implementing these measures, employers can reduce the likelihood of tribunal claims, save time and money, and maintain a compliant and fair workplace. Proactive management not only protects an organisation’s reputation but also fosters trust among employees, which is increasingly important in a climate of rising claims and legal scrutiny.
In summary, the combination of rising claims, backlogs, and the forthcoming Employment Rights Bill makes it vital for employers to act now. Maintaining updated policies, applying fair procedures, training managers, documenting decisions, intervening early in disputes, and seeking legal advice are all essential steps in protecting an organisation from costly employment tribunal claims and ensuring a fair, compliant workplace.
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