Employment Tribunal claims on the rise: What Q3 tells us about the changing workplace

17th Apr 2025

Author: Mohammed Balal

The Ministry of Justice has released its Employment Tribunal statistics for the third quarter of the 2024/2025 financial year, covering October to December 2024. These figures provide a clear window into the current state of workplace disputes, and all signs point to a system under growing pressure.

Tribunal claims have risen sharply compared to the same period in 2023, with unfair dismissal, discrimination, and wage disputes continuing to top the list. This upward trend reflects the shifting dynamics of the modern workplace, where employees are more aware of their rights and increasingly willing to challenge perceived injustices.

As we look ahead, proposed changes in the Employment Rights Bill (ERB) suggest that the number of claims may not only continue to rise but could surge even further.

What the numbers say

The latest data confirms what many in the employment law space have suspected: more employees are taking formal action.

• Overall increase in claims: There has been a noticeable jump in the number of cases brought to tribunal in Q3 2024 compared to the previous year.
• Unfair dismissal: Claims rose by 25.49%, from 10,200 to 12,800—highlighting growing concerns around job security and termination practices.
• Wage disputes: Up 16.67%, reflecting continued tensions around pay, particularly in lower-paid or historically underrepresented sectors.
• Discrimination: While the increase is more modest at 7.69%, this area remains a significant focus in workplace disputes.
• Flexible working: There has been a marked increase in claims related to flexible working requests—an area that continues to evolve in the post-pandemic landscape.

Notably, many claims continue to be resolved before reaching a full hearing, often through early conciliation or voluntary settlement (COT3). However, there has also been a rise in full hearings, suggesting more complex and contentious disputes.

Geographically, the highest volumes of claims have been seen in major cities such as London, Manchester, and Birmingham, with rural areas experiencing comparatively fewer cases. This reflects broader regional employment patterns and access to legal support.

Looking ahead: The impact of the Employment Rights Bill

If passed, the Employment Rights Bill could significantly reshape the employment tribunal landscape. Three key proposals stand out:

1. Unfair dismissal protection from day one
   Currently, employees need two years of continuous service to bring a claim for unfair dismissal. Under the proposed changes, this protection would become a day-one right. Such a shift would empower new starters to challenge dismissals, likely leading to a sharp rise in claims.
2. Longer time limits to bring claims
   The Bill proposes extending the current three-month limitation period for most claims to six months. This would give individuals more time to seek legal advice and bring a claim—again increasing the likelihood of tribunal activity.
3. A broader definition of ‘employee’
   By including more workers, such as those on zero-hour or casual contracts, the definition of ‘employee’ would become more inclusive. This would bring a wider group of people within the scope of employment protections and tribunal eligibility.

While these changes are intended to improve access to justice and ensure greater protection for workers, they will also place added strain on an already stretched tribunal system. More claims mean longer waiting times and greater administrative demands, making it vital for the system to be properly resourced.

What this means for employers and employees

The rise in tribunal claims, and the potential for even more, serves as a timely reminder for employers to review their workplace practices. Clear policies, fair procedures, and open communication can all help reduce the risk of disputes escalating to tribunal level.

For employees, the growing volume of cases and the potential changes under the Employment Rights Bill reflect a landscape where rights are becoming more visible, and more accessible. But while the system is there to protect individuals, navigating it can still be challenging without the right support.

Final thoughts

We are seeing a pivotal moment in UK employment law. The Q3 statistics highlight not only a rise in claims, but also a changing mindset among employees and employers alike. With the Employment Rights Bill on the horizon, the direction of travel is clear: a more accessible, inclusive tribunal system that is likely to become busier than ever.

At Butcher & Barlow, we understand that employment disputes can be stressful and complex. Whether you are an employer looking to stay ahead of upcoming changes, or an employee seeking clarity on your rights, we are here to help you make informed decisions.

If you would like advice on how these changes could affect you or your business, please get in touch with our Employment Law Team.

Mohammed can be contacted for a no obligation chat on 0161 764 4062 or email him at mbalal@butcher-barlow.co.uk

 

 

 

The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.