Navigating the growing challenge of employment tribunal claims

The growing employment tribunal challenge

Did you know that in 2023, the UK experienced a significant increase in employment tribunal claims compared to the previous year? From April to June alone, around 24,000 employment tribunal claims were filed, including 7,900 single claims and 16,000 multiple claims (GOV.UK). This surge suggests that the total number of employment tribunal claims could approach approximately 85,000 claims annually.

The UK employment tribunal system is facing a major backlog. This problem has worsened due to a large number of new claims, ongoing COVID-19 issues, and administrative delays. Because of this, backlogs and delays from previous years are likely to affect case processing in 2024 and beyond.

With the UK workforce comprising about 33 million people (UK Parliament), this means roughly one in every 390 employees files a claim each year. For organisations with 10,000 employees, this could translate to around 25 claims annually. For companies that already experience above average employment tribunal claims, this could rise significantly.

Looking ahead, Labour’s proposed introduction of a day-one right to unfair dismissal claims could further increase this volume significantly (Labour Plan). Given these potential changes, it is imperative for businesses to adopt effective strategies to manage these risks and address the financial implications involved.

The role of effective employee relations management

To navigate this evolving landscape, businesses must focus on transforming their approach to employee relations. Robust people processes and market-leading HR technology can play a pivotal role in this transformation.

empower® offers a forward-thinking solution for managing employee relations. This award-winning case management system has demonstrated its effectiveness through various case studies. For instance, our client, Wickes reported a 50% reduction in employment tribunal claims and associated costs by leveraging insights to manage employee relations more proactively.

Wickes, won the Digital HR and Technology Award 2023 with the technology used in partnership with AdviserPlus. Access the full case study here.

Key benefits of transforming employee relations management

• Streamlined employee relations processes: Guided workflows for managers ensure consistent, best-practice-aligned resolutions, enhancing efficiency and reinforcing trust within your team.
• Consistency and compliance: Handle each employee relations case, such as disciplinaries and grievances, in line with company policies and legal requirements, with detailed audit trails and automated documentation readily available.
• Comprehensive documentation: Create complete case bundles quickly, significantly reducing administrative time.
• Early conciliation success: Improve the likelihood of resolving disputes amicably and avoid costly tribunal claims.
• Reputation protection: Efficient workplace dispute resolution helps avoid reputational damage and strengthens overall employee experiences.
• Cost savings: Reduce administrative, legal, and settlement costs through improved case management and quicker resolution times.

Future-proof your organisation

By integrating the right HR technology and people processes, businesses can significantly reduce the risk of employment disputes and manage tribunal claims more effectively. This not only safeguards the organisation but also builds a more positive and productive work environment.

For a deeper understanding of these strategies and their impact, consider signing up to access a short video here, or explore our case studies here.