The rising tide of tribunal claims: what employers need to know

The Employment Tribunal system is under unprecedented pressure. Recent statistics from HM Courts and Tribunals Service reveal a sustained and significant increase in the volume of claims being brought by workers and employees across England and Wales.

For employers, this trend demands attention — not only because of the immediate costs and disruption that litigation brings, but because the legislative landscape is about to shift further still. The Employment Rights Act 2025 introduces a suite of reforms that may further increase delays in the Tribunal.

The current picture

At the end of March 2026, there were 64,000 open cases within the Tribunal system, which represents a 42% increase on the previous year. Quarterly statistics show that the backlog of claims continues to increase month on month.

Law Society of England and Wales president Mark Evans has described the current position as “alarming” and “urgent”. The practical effect for parties in live Tribunal proceedings is, in short, delay. Claims issued in 2026 may now not be resolved until 2029 or even 2030 if they proceed all the way to a final hearing.

The delays can be broadly attributed to the following:

1. Staffing issues: judicial capacity and recruitment have not kept pace with a rising number of new claims being issued. Equally, the wider administrative services of the Tribunal remain understaffed. Efforts by the Ministry of Justice to digitise and modernise the Tribunal system have perhaps not been as successful as hoped, nor have they proved to be the silver bullet many expected
2. The false economy of litigants in person: legal aid is not extended to those in the Employment Tribunal. Inevitably, parties acting for themselves are not accustomed to employment law or the Tribunal process. Tribunal time is therefore taken up by assisting parties to clarify or frame their claim or response, as well as by sitting days being wasted due to missed court deadlines or errors in process
3. AI: as a consequence of parties representing themselves, it’s understandable that online tools are being used to support proceedings. The impact of AI tools is two-fold: first, claimants submit longer documents and applications without a true understanding of their legal or factual accuracy; secondly, additional judicial time is then spent reviewing those documents and identifying the issues to be determined.

The impact on the respondent employer

For all employers, no matter the industry or sector, delays in the resolution of claims pose significant challenges and can result in increased management time and costs.

Witnesses

Employers defending an Employment Tribunal claim will often rely heavily on decision-makers and line managers. Long delays before a final hearing takes place may result in a key witness leaving the organisation, with the respondent losing contact and being unable to rely on their attendance at Tribunal.

A party may apply for a witness order, but most employers would rather not take the risk of relying on a reluctant witness. Even if a key witness does remain in employment, memories fade over time and key details may be forgotten. Employers can seek to guard against this by taking witness statements early and including reasonable assistance clauses in settlement agreements.

Evidence

Delay will require employers to consider potential claims at a much earlier stage and preserve key documentary evidence. Employers are understandably concerned about their data retention obligations; however, awaiting the disclosure stage of a Tribunal claim before carrying out appropriate searches could result in crucial evidence being lost, whether by accident or through company policy.

Settlement

For employers, delays in the Tribunal process can be used to their advantage. Employers who wish to settle with claimants can use the length of time it might take for a former employee to receive any Tribunal award to offer a settlement as a means of promoting an accelerated receipt of compensation.

For those employers who don’t wish to settle, going to Tribunal is no longer the threat it once was. Some employers will take the view that claimants may wait three to four years for a resolution and that loss of earnings is therefore likely to be capped, given that most people need to receive an income and can’t wait three to four years. This can then assist in achieving a smaller settlement akin to a nuisance payment.

What’s the solution?

Prevention is better than cure. Staying out of Tribunal is the easiest way to ensure that your business doesn’t suffer as a result of Tribunal delays. This means that getting HR processes right and dealing properly with employee grievances, disciplinary matters and flexible working requests is essential to keep employees contented and out of Tribunal.

Employers should also be thinking about alternative dispute resolution options such as workplace mediation. Our HR Consultancy team is made up of experienced HR professionals who can support your business through whatever employee relations issues arise.