Employee relations and tribunal claims in the AI era

We’ve entered a new chapter in employee relations, where artificial intelligence is reshaping tribunal claims. It’s enabling employees to submit longer, more detailed grievances using AI tools like ChatGPT.

These developments are increasing complexity for human resources and employee relations teams, prompting important considerations regarding transparency and the influence of human judgment in workplace disputes.

Challenges for HR and employee relations

The Employment Rights Bill and evolving employee expectations are contributing to an increase in employee relations case volumes as awareness of employee rights grows. This is exposing HR teams to:

• More complex, AI-assisted cases;
• Increased legal review and costs;
• Reduced resources due to higher demand.

As HR contend with increasing case volumes, similar pressures are evident within the tribunal system, which is under significant strain.

UK Employment Tribunals: A system at breaking point

Recent data published in People Management magazine shows concerning figures regarding the current state of the employment tribunal system:

• 50,000 cases in backlog (+23% in one year);
• 3-year wait times from dismissal to hearing;
• 450,000 people awaiting resolution.

AI-driven claims, combined with economic challenges and limited resources, are contributing to these delays.

Jessica Kelleher, Head of Litigation in our legal division, warns that “the upcoming Employment Rights Bill, with extended claim periods and day-one unfair dismissal rights, will further increase case volumes as employee awareness grows.”

Download our free ERB tracker to stay informed.

The impact on HR teams

These systemic delays don’t just impact employees, they directly heighten pressure on HR teams. The latest insights paint a clear picture of the impact:

• 74% of UK employees report significant burnout (theHRDirector)
• 87% of HR professionals feel unsupported in their wellbeing (HR Magazine)
• 42% are considering leaving the profession (HRreview).

To address these pressures, organisations need to reimagine how HR operates to keep pace with evolving demands, build organisational resilience and reduce HR burnout.

The bottom line for HR teams: Prevention is your strongest defence

Strong management training, robust employee relations processes, and early conflict resolution strategies are business-critical to help organisations avoid tribunals. But this is only part of the story. More radical HR transformation is needed to get ahead of the complexity to come.

Transforming HR operating models

Organisations that rely significantly on HR to support managers with routine people management tasks or continue to use manual processes to manage employee relations matters will be facing heightened risk in the new ERB era.

Many organisations are still reliant on outdated tools for managing complex employee relations data. This poses significant challenges, not just from the point of view of the lack of visibility of insights, but also from a data security angle.

Tools like Excel are simply not robust enough to be used to process such sensitive data, but even some of the largest organisations are still using spreadsheets to analyse ER data. If organisations don’t invest in fit-for-purpose tools to support this vital function of HR, the risks will be significant.

In terms of insights, HR is awash with data, but without the tools to provide visibility of trends and surface the root cause of ER issues, HR are hampered in their efforts to make data-driven decisions.

It’s now critical to invest in transforming the ER operating model with the right digital tools and manager training to be future-ready for the new employee rights era.

Top 3 priorities to relieve HR pressure

Organisations can stay ahead by focusing on three key strategies: assessing risk, empowering managers, and leveraging data.

Assess your organisation’s legal risk

To assess an organisation’s legal risk in the current employment landscape, start by:

• Evaluating your employee relations operating model: Analyse the scalability of existing processes to ensure they can efficiently scale with rising case volumes and identify any areas prone to bottlenecks. Evaluate whether employee relations cases are documented consistently using fit-for-purpose digital tools, or if the process remains fragmented across manual systems like spreadsheets.
• Assessing the current risk environment: Review employee experience metrics and measures like sickness absence and grievance rates to benchmark your current position and identify key pain points that need to be addressed. If there are gaps in your insight, this is indicative of the need to invest in data insight tools now.
• Reviewing your policies: Are people-related policies clearly documented and have you assessed which policies and processes need to be updated to reflect the changes coming in the ERB? Outdated policy frameworks can contribute to legal risk and lack of clarity across the organisation.
• Assess in-house advisory capacity: The impact of the ERB will be seismic and HR teams are already overstretched. Data we modelled on our client base showed that just in probation cases alone, organisations are likely to see up to a 230% uplift in case tasks when new day-one rights to unfair dismissal come into force in 2027, resulting in a 13% uplift in ER resource requirements. So, if you have an inhouse team, you need to assess and model how this will impact capacity in the coming year.

If you outsource or are considering outsourcing employee relations support, look for a supplier that can support you with legally privileged advice as this will become even more vital in the future. Gaps in processes, weak data analysis, or lack of specialised support indicate significant legal risks that require urgent attention.

Empower your managers

Managers face increasing demands, such as more robust requirements in evaluating employee performance and managing probationary processes. Fair assessment, timely action, and support for staff are more essential than ever to effectively assess new hires and reduce the risk of disputes. Consider:

• Offering managers comprehensive training programmes: Cover technical knowledge and interpersonal skills. Examples include workshops on communication, conflict resolution, and leadership development. Ongoing coaching helps managers stay informed about best practices.
• Ensuring organisational guidelines and policies are clear and accessible: Provide managers with detailed procedures for probation management, grievances, performance management, and disciplinary actions, including guidance on understanding modern challenges like the accessibility of AI to support robust claims. Regularly update these policies to reflect legislative and organisational changes.
• Providing managers with relevant resources: Access to employee relations experts, and technology-driven case management tools supports their responsibilities and reduces case escalations.

It’s important to ensure managers have the training and capability needed to deescalate issues, as lack of empowerment can lead to more tribunal claims.

Take a data-driven HR approach

Collaboration between legal teams, HR, and senior leadership plays an increasingly significant role. Using technology for early intervention and clear communication helps organisations manage risks and reduce tribunal proceedings.

• Evidence and comprehensive data are used to inform decisions: Analysing trends and patterns in employee relations data allows HR to make objective, data-driven choices aimed at improving workplace culture.
• Transforming raw data into actionable insights: Predictive analytics can forecast potential issues, such as areas of conflict or factors affecting employee experiences, enabling proactive management intervention.
• Streamline data gathering and reporting: Automated processes may increase accuracy, consistency, and security by reducing manual intervention. Real-time insights assist with prompt responses to emerging concerns and may lead to shorter case durations and changes to workplace conditions.

With effective implementation of these strategies, organisations have achieved a reduction in average case durations, sickness absence rates by up to 10% and employment tribunal claims by up to 50%.

The combination of innovation and human insight equips organisations to navigate changes in the employment environment with confidence – read case studies here.

Let’s future proof your HR strategy

With employee awareness increasing and legislative changes like the Employment Rights Bill alongside AI-driven complexities, maintaining a robust employee relations model is essential. It’s not a matter of “if” but “when” your processes will be tested.

Book a consultation today to explore how legally protected, manager-led, and data-informed employee relations services can reduce costs, mitigate legal risks and alleviate HR burnout.