Businesses urged to review policies

Shropshire businesses are being urged to review their HR policies and procedures as employment tribunal claims continue to rise across the UK.

Official Ministry of Justice data shows that single employment tribunal claims rose by 23 per cent in 2024/25, with around 42,000 claims received in that year alone.

The overall tribunal backlog has now exceeded half a million outstanding cases - the highest level since 2013/14 - and Alasdair Hobbs, of Telford-based employment law and HR consultancy Human Results, said the situation was putting pressure on businesses.

“We are seeing a steady increase in the number of workplace disputes escalating further than they might have done previously. Figures show the most common type of claim is unfair dismissal, which accounts for around half of all single claims, followed by disability discrimination and unauthorised deductions from wages.

“Average compensation awards are also significant: the mean unfair dismissal award in 2023/24 was £13,749, while race discrimination awards averaged £29,532, sex discrimination £53,403, and age discrimination £102,891.

“In many cases, issues that could have been resolved informally are now progressing to formal action, which creates additional pressure for both employers and employees.

“It’s important that businesses take the time to review their policies, ensure managers are properly trained, and deal with concerns early before they develop into something more serious.”

The growing backlog means cases are now taking an average of 12 to 18 months to reach a hearing, and some regions are already listing cases into 2028. Research also shows that UK businesses spend an average of 4.8 weeks managing a tribunal claim, with significant indirect costs including management time, legal fees and reputational risk.

Alasdair said that clear communication, consistent processes and up-to-date documentation remained key to reducing risk.

“Having the right policies in place is only part of the picture. Employers also need to make sure those policies are applied consistently and that managers feel confident handling difficult situations.

“Looking ahead, the Employment Rights Act 2025 is expected to increase pressure further. From January 2027, the qualifying period for unfair dismissal will reduce from two years to six months - a change the Government estimates will bring an additional six million workers within scope.

“The compensation cap for unfair dismissal, which currently stands at £118,223, will also be removed entirely. So a small investment in getting things right early on can prevent much more significant issues further down the line.”

Pictured: Alasdair Hobbs of Human Results