According to new figures, the backlog of employment tribunal cases pending in the UK at the end Q4 2024 reached 49,800. This is a 23 percent increase compared to 39,000 cases that were outstanding at the time in 2023.
According to these figures published by Littler, a law firm that specializes in employment, the number of people who are affected by delays for both single and multi-claims is estimated at around 450,000.
In Q4 2024 11,500 new cases were filed with employment tribunals. This is a 30 percent increase over the 8,800 cases that were received in Q4 2023. The number of new cases has increased by 30 percent compared to Q4 2023, when 8,800 claims were received.
Philip Cameron, a partner at Littler said that the main issue is a lack of qualified employment tribunals judges. This has resulted in long delays for employees and employers waiting to resolve disputes. Ministry of Justice statistics show that the average waiting time for a claim related to discrimination or unfair dismissal is now around 12 months.
Cameron stated, “That is not fair to either party.” Businesses are unable to function if they’re in legal limbo. This is an acute problem for small businesses.
He said that the Government must allocate more funding to deal with the backlog of claims and be prepared for the expected increase in claims after the Employment Rights Bill becomes law.
Employment tribunal case volumes outpace resolutions
Cameron said that the Employment Rights Bill currently being debated in Parliament will likely increase pressure on the tribunal system, as new workplace rights will be introduced.
He said that if unfair dismissal is made a “day one” right, with or without probation periods, there will be a huge surge of claims. “On top that, there is the potential for disputes to arise from redundancies by companies as they attempt to cope with recent increases in minimum wage and employer’s national insurance.”
The Employment Rights Bill introduces several changes to increase worker protections. These include enhanced flexible working rights, redundancy protections and protections for those who are pregnant or returning from parental leave. Legal commentators are concerned that the new statutory rights could lead to more workplace disputes, and an increased number of cases brought to court.
The impact of previous policy modifications is still felt
The employment tribunal system is still feeling the impact of pandemic-related disruption and earlier policy decisions. The abolition in 2017 of tribunal fees, which eliminated charges for filing and pursuing claims is cited as the key driver behind long-term increases in case volume.
The removal of the fees was seen by many as a victory for access to justice. However, since then, the system is struggling to cope with the increase in claims. This problem has been compounded by the delays caused by Covid-19 which led to a number of hearings having to be postponed.
These factors have combined to put sustained pressure on an under-resourced system, which is now perceived by many employers and claimants. Littler called for an urgent investment in order to increase judicial capacity and reduce case processing time.
