If you were to look at a dashboard of recent employment tribunal data in the UK, it does not make good reading.
The number of open cases in the first three months of 2025 stood 32% higher in comparison to a year earlier: that’s an open caseload of 45,000 claims.
A wide variety of claim types are on the rise compared to the previous quarter:
- Redundancy and working time + 25% (approx.)
- Disability discrimination + 28% (approx.)
- Discrimination generally + 15% (approx.)
Worse to come
Anyone optimistic that the government might intervene and relieve some pressure will be sorely disappointed. In fact, the likelihood is that further pressure will build as a consequence of legislation. Here’s why.
First, the Employment Rights Bill is set to introduce a day one right to claim unfair dismissal. With there currently being a two-years-of-service qualifying period before a claim can be made (excluding discrimination claims), this will qualify many more people to start tribunal proceedings.
Second, the same bill will increase the time limit in which a claim can be made from three months to six months; again expanding the scope of claims.
Third, again from the Employment Rights Bill, the new Fair Work Agency will have powers to bring claims against employers on behalf of employees, even if those staff are not minded to pursue a claim themselves.
And fourth, not from the Employment Rights Bill this time, but since October 2024 employers have new risk exposure to be taken to court by staff where harassment has taken place. If this happens, it will be down to you to demonstrate that you took all reasonable steps to prevent it.
Industry under pressure
The hospitality sector is reported to be under particular pressure. A report produced by a law firm in 2025 found that claims here were more than 10% higher than across the average. Harassment related to a protected characteristic was the most common cause for a claim, representing 15% of all claims.
Further statistics from the report, which help paint a more general picture, were that 70% of claims were settled before they reached a final hearing due to factors like the management time involved and reputational risk. And that on average, four hours and twenty minutes were spent managing claims every week by each company.
Your lifeline: Tribunal indemnity insurance
We have long woven tribunal indemnity insurance into our retained service, called Advice Line. A lifeline, bullet-proof vest, call it what you will, you may find it a lifesaver for your business. And now it is even more valuable than ever.
Regardless of whether you win or lose, when an employee takes you to an employment tribunal, it will cost you time, energy and money to defend it. Even if you are successful, you are unlikely to recover your costs from the claimant. And if you lose, you may have to pay compensation (potentially unlimited), plus costs.
Clients of our Advice Line, however, are protected. There is no pre-qualifying. All you have to do, is carefully follow our advice from the outset of a case.
Not only do you get real-time HR advice that can help you navigate complex HR scenarios correctly, significantly reducing the chance of a claim; but should someone try it on, your policy will pay for your legal representation and, should you lose, your financial penalties.
You are not just getting protection from the heavy costs you could experience, but also valuable peace of mind – so precious to busy business owners.
Get protected
If you are interested in further HR support, including tribunal indemnity insurance, please get in contact with us today. We can explain more and provide a bespoke quote to you based on the size and complexity of your organisation.
