As an employer, one of the things you want to avoid are employment tribunals because they can be costly in terms of legal fees and compensation, time-consuming with lengthy delays, and stressful with an uncertain outcome, not to mention potential damage to your company’s reputation.
Employment tribunal claims on the rise
From employment tribunal statistics published The Ministry of Justice relating to the year April 2024 – March 2025, it is clear that employment tribunal claims are on the rise. Single employment tribunal claims received in 2024/25 rose by 23% to 42,000. Whilst the number of open (live) single claims stood at 45,000, up from 33,000 at the same time the previous year.
It is thought that this increase has been driven by potential legal changes, heightened scrutiny in whistleblowing cases, a backlog in the system – meaning disposals have not kept with new claims- and a rise in specific types of claims such as unfair dismissal and making reasonable adjustments in disability discrimination.
Most common types of cases
The most common types of cases in employment tribunals when it came to new cases during this time period were:
- Unfair dismissal – 22%
- Breach of contract – 14%
- Disability discrimination – 13%
- Unlawful deductions from wages – 12%
The highest maximum award for a discrimination case at a tribunal in the 2024/25 period was £995,128 in a sex discrimination case, with other high maximum awards including £964,465 for disability discrimination and £431,768 for race discrimination. It’s important to note there is no upper limit for compensation in discrimination cases, as awards are calculated based on the claimant’s financial losses, but there are specific statutory caps for unfair dismissal and redundancy.
These results highlight a growing risk of litigation and significant financial penalties for employers who do not adhere to employment law. Add to this the extension of the ACAS Early Conciliation period (from six to twelve weeks, effective December 1, 2025), which will give employees longer to bring a claim, potentially up to nine months in some cases and it’s no wonder that many employers are worried that they are more likely to face a tribunal case now than ever before.
Top tips to avoiding an employment tribunal
That’s why we advise our clients to do everything they can to avoid an employment tribunal. Here’s our step by step guide to getting things right from the offset:
- Establish clear, comprehensive and compliant policies covering discipline, grievances, anti-harassment, equal opportunities, data protection, and whistleblowing. A well-drafted contract of employment is an excellent starting point.
- Apply policies and procedures consistently to all employees to ensure fairness. Address issues as soon as they arise, and try to resolve them informally at an early stage where possible.
- Communicate policies to all employees and ensure they understand them, for example, you could do this by having them acknowledge updated staff handbooks
- Be proactive in seeing signs of a potential disability and making reasonable adjustments
- Maintain detailed and accurate records of all employment-related matters, including contracts, performance reviews, disciplinary actions, and meetings. Good record-keeping provides essential evidence to prove that decisions were fair and reasonable.
- Ensure managers are adequately trained in HR procedures and open communications. They should also have sufficient HR knowledge and emotional intelligence to handle employment issues appropriately and identify potential problems early on
- Take proactive steps like early, informal resolution of issues and settlements which can help prevent escalation and reduce the likelihood of formal claims
- Seek advice from services like Acas to help mediate disputes and settle claims before they reach a tribunal
How can I help?
I can help you to update policies, review contracts and prepare for upcoming employment law changes so you can stay compliant and avoid disputes. Get in touch if you require any assistance –caroline.robertson@actifhr.co.uk