BACKLOGGED AND BREAKING POINT
What the Tribunal Crisis Means for Employers
The employment tribunal system is facing a mounting crisis. Recent reports reveal that the backlog of outstanding claims has surged to nearly 50,000 cases, marking a 27.69% increase over the past year. This growing caseload is causing significant delays in the resolution of disputes.
This development has serious implications for employers, HR professionals, and legal teams alike. In this month’s update, we explore the causes of the backlog, its impact on employers, and practical steps businesses can take to mitigate the risks.
What’s Causing the Backlog?
The backlog is the result of a combination of long-standing structural issues and more recent pressures. The Financial Times reports that the backlog can be linked all the way back to the abolition of tribunal fees in 2017, which led to a sharp increase in claim volumes. The COVID-19 pandemic further exacerbated the situation, with lockdowns and remote working challenges slowing down hearings and case management.
More recently, the Employment Lawyers Association has pointed to a shortage of judges and administrative staff as a key factor. Despite efforts to digitise the system and introduce virtual hearings, the pace of reform has not kept up with demand. As a result, many claimants and respondents are now facing delays of 12 to 24 months before their cases are heard.
The Numbers at a Glance
49,800 total outstanding cases as of early 2025
43,000 single claims
6,800 lead multiple claims
Average wait time for a final hearing: 12–18 months
Some regions reporting delays of up to two years
Withdrawal rates increasing due to emotional and financial strain on claimants
These figures underscore the scale of the challenge. For employers, the implications are not just legal but also operational and reputational.
“The Ministry of Justice has acknowledged the scale of the problem and committed to recruiting more judges and investing in digital infrastructure. However, meaningful change is likely to take time. In the interim, employers should prepare for continued delays and adopt a proactive, risk-managed approach to employment disputes.”
What This Means for Employers
The growing backlog presents a number of risks and considerations for employers:
Prolonged Uncertainty
Ongoing disputes can create a cloud of uncertainty over business operations, particularly where senior employees or sensitive issues are involved. The longer a case remains unresolved, the greater the potential impact on team morale and productivity.Increased Settlement Pressure
With hearings delayed, some employers may feel compelled to settle claims early—even where the legal merits are weak—simply to avoid the cost and disruption of prolonged litigation.Reputational Risk
High-profile or contentious claims that remain unresolved for extended periods can attract media attention or internal scrutiny, potentially damaging an employer’s brand and employee relations.Strategic Opportunity
On the flip side, the delay may offer employers more time to gather evidence, prepare witnesses, and explore alternative dispute resolution methods such as mediation or conciliation.Defence strength
One of the key elements to defending a claim is the strength of witness evidence. The longer time that passes between alleged incidents and the hearing, the more likely it is that key witnesses will have left the business, or be unable to remember key facts.
Practical Steps for Employers
In light of the current climate, we recommend the following proactive measures:
Early Intervention
Address workplace disputes promptly through internal grievance procedures. Early resolution can prevent escalation and reduce the likelihood of a formal claim.Robust Documentation
Ensure that all employment decisions—particularly those involving disciplinary action, redundancy, or dismissal—are well-documented and legally sound. This also means including “assistance” or “future cooperation” clauses in settlement agreements and key witness evidence being robustly recorded at an early juncture.Legal Risk Assessment
Seek early legal advice when a claim is threatened or issued. A clear understanding of the strengths and weaknesses of your position can inform your strategy and reduce unnecessary costs.Consider ADR
Explore alternative dispute resolution options such as ACAS early conciliation or private mediation. These can offer faster, more cost-effective outcomes than waiting for a tribunal hearing.
What’s Next?
The Ministry of Justice has acknowledged the scale of the problem and committed to recruiting more judges and investing in digital infrastructure. However, meaningful change is likely to take time. In the interim, employers should prepare for continued delays and adopt a proactive, risk-managed approach to employment disputes.
We will continue to monitor developments and provide updates as the situation evolves. If you have any questions about how the tribunal backlog may affect your organisation, or if you are currently managing a claim, please don’t hesitate to get in touch with our team.
