Backlog grows as tribunal faces strain

The backlog of employment tribunal claims has surged by 26% over the past year, highlighting the growing challenges within the system. As of the end of September, the ‘Employment Tribunal Open Caseload’ has reached an alarming 61,163 cases, leaving hundreds of thousands of employees in limbo as they await resolution. This rise comes amidst the backdrop of the House of Lords sending the Employment Rights Bill back to the Commons for further deliberation. The Bill aims to extend legal protections against unfair dismissal to all employees from their very first day of work, potentially offering crucial security to millions.

However, the increasing claims have outpaced the capacity of the tribunal system. Analysis by legal expenses insurer ARAG indicates that while the rate of case disposals increased by 12%, new claims surged even more dramatically. The increasing backlog presents a dilemma, threatening to delay justice for workers and complicating operational decisions for businesses. Andy Talbot, Director of Broker, ATE & Marketing at ARAG, expressed concern by stating “A year ago, we warned that the government’s new Employment Rights Bill was incompatible with the failing employment tribunal system. The situation now is so much worse.”

The adverse effects of these delays extend beyond individual cases; they significantly impact the economic climate. Small businesses, in particular, may hesitate to hire or invest in growth due to the uncertainty of ongoing employment claims hanging over them. Andy Talbot elaborated, saying “Delays in our justice system act as brakes on the economy,” further suggesting that it may be prudent to reconsider the immediate implementation of the day-one right to claim unfair dismissal. Talbot proposed, “There’s little point in granting workers a right from the first day of their employment that it might take years for them to exercise.”

With the tribunal backlog continuing to grow at such a rapid pace, the implications of a delayed and burdened system on workers and employers cannot be overlooked. The conversation around the Employment Rights Bill and its compatibility with the current tribunal landscape is more critical than ever, with many advocating for a reform that addresses these systemic issues for the benefit of all.