Employment tribunal claims have been rising for quite some time, and the pressure on employers shows little sign of slowing down.
The latest tribunal statistics show claims continue to increase at a time when the employment tribunal system is already creaking at the seams. For employers, that means greater legal costs, increased management time, operational disruption and longer periods of uncertainty when disputes arise.
Expanded rights and greater employee protections under the Employment Rights Act are also expected to drive additional claims by at least 15% over the coming years. This paints a concerning picture for employers.
So why are claims increasing, and is there actually anything employers can be doing to mitigate the trend?
Why are claims increasing?
AI is changing the way workplace disputes escalate
One growing factor is the increasing use of AI tools in workplace disputes and litigation. Employees are increasingly turning to AI platforms to draft grievances, appeal letters and employment tribunal claims. In practice, that sometimes means issues which may previously have been resolved informally are escalating immediately into formal processes or litigation.
AI is litigious by nature. Rather than encouraging practical workplace resolution, it often pushes employees towards formal legal escalation at an early stage. A further challenge is that AI frequently lacks legal nuance and context.
Claims can become overly broad, inconsistent or legally confused, making them more difficult and time-consuming for employers, legal representatives and tribunals to deal with. Hearings become longer, procedural issues increase, and already stretched tribunal resources are placed under more pressure.
With only a finite number of judges and hearing dates available, longer and more complex cases inevitably contribute to growing delays across the tribunal system.
Economic pressure is influencing litigation behaviour
The current economic climate is also likely playing a role.
Cost of living pressures can increase the temptation for some individuals to pursue speculative or weak claims in the hope of achieving a financial settlement. Larger employers, in particular, may be perceived as more likely to settle claims commercially in order to avoid legal costs, reputational risk or management disruption.
Of course, many tribunal claims are entirely legitimate and well-founded. But employers should be realistic about the fact that economic uncertainty can contribute to a more litigious environment overall.
What can employers be doing about this?
Keep a clear paper trail
Most tribunal claims are won or lost long before the hearing itself. Employers should ensure there is clear documentation around things like performance concerns, workplace conversations, grievances, disciplinary processes and decision-making.
Where records are incomplete, inconsistent or overly informal, defending claims becomes significantly harder – particularly many months later when managers are relying on memory alone. A clear paper trail can often be the difference between quickly resolving a claim and becoming tied up in lengthy litigation.
Invest in regular and practical manager training
Policies alone rarely protect employers if managers don’t have the confidence to apply them in practice.
Regular training on Equality Act obligations, grievances, disciplinaries, investigations and appeals can help managers identify issues early, handle concerns consistently and avoid procedural mistakes which later become key evidence in tribunal proceedings.
Employers should also retain records of the training staff and managers have completed. If an organisation later needs to demonstrate the steps it has taken to prevent discrimination or inappropriate behaviour, training records can become critical in evidence.
Focus on employee experience early
Many workplace disputes begin long before a formal grievance is raised. Prevention is almost always cheaper than litigation.
Poor onboarding, inconsistent management, unclear expectations and lack of communication during the early stages of employment can all contribute to conflict later down the line.
Reviewing induction processes, ensuring employees receive a positive start and scheduling regular one-to-ones outside of formal probation meetings can help identify and resolve issues before positions become entrenched.
Create a culture where people feel heard
Employees are often less likely to escalate concerns externally where they feel issues are genuinely listened to internally.
Promoting a positive culture where employees feel comfortable raising concerns and managers are equipped to respond appropriately, can help resolve problems earlier and reduce the likelihood of unnecessary escalation.
That does not mean every concern can or should be resolved informally. But organisations where employees feel ignored, unsupported or unable to raise concerns safely are far more likely to experience formal disputes.
Take legal advice early and deal with weak claims proactively
We wouldn’t be doing our jobs if we didn’t encourage this! Employers can’t completely eliminate the risk of tribunal claims arising. Even the best employers with strong cultures and processes may still get a claim land on their desk.
The key is often resolving disputes quickly and commercially before legal costs, management time and operational disruption escalate unnecessarily. Taking (the right) legal advice at an early stage can help employers assess risk realistically, preserve important evidence and identify strategic options from the outset. In some cases, preliminary applications, such as applications for deposit orders, may also help expose weak claims and encourage earlier resolution.
Allowing weak or poorly managed claims to drift can quickly become far more expensive than dealing with them proactively at the outset. That’s what we do best.
How can we help?
Employers may not be able to prevent every claim, but strong processes, effective management and early intervention can significantly reduce both the likelihood and impact of them.
Whether you need support with manager training, workplace investigations, policy reviews, outsourced ER support or defending employment tribunal claims, our team can help. Our in-house litigation team hasn’t had a client pay compensation at tribunal in over six years. Not bad, right?
Give us a shout if you’d like to chat about how we can support your organisation.
This update is accurate on the date it was published but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
