Employment Tribunal Claims on the Rise: What Employers Need to Know

Employment tribunal claims are increasing sharply, with government figures showing nearly 45,000 active claims in the first quarter of this year – a rise of almost one-third compared to the same period last year. 

Unfair dismissal claims top the list, accounting for approximately 22% of all cases. These are followed closely by breach of contract (14%) and disability discrimination claims (13%). The upward trend is expected to continue as new legislation broadens employee rights. 

What’s Driving the Surge? 

A combination of economic pressures, workforce restructuring, and rising operational costs is contributing to a growing number of disputes. The upcoming Employment Rights Bill – which will give employees the right to claim unfair dismissal from their first day on the job – is likely to further increase the volume of claims. This legislative shift may also lead to heightened media interest in employment disputes. 

Publicity Fears: A Common Pitfall 

Many employers choose to settle cases early, often driven by concerns about potential reputational damage rather than the strength of the claim. However, this approach can sometimes incentivise weak or opportunistic claims, especially when claimants anticipate that employers may prefer a quiet resolution. 

It’s worth remembering that media coverage of tribunals often focuses more on broader legal issues or societal themes than on the individual employer. In many cases, the employer’s role in the story is minimal, but businesses can overestimate the reputational fallout. 

Managing Risk: Focus on Substance, Not Just Optics 

When deciding whether to settle, the key consideration should be the merits of the case, not just the fear of bad press. Claims involving the Equality Act often trigger heightened sensitivity, but even negative coverage can be navigated effectively with the right communications strategy. 

A well-crafted PR strategy can significantly reduce reputational risk. Trying to over-explain a case before the hearing, however, can backfire, sometimes drawing unnecessary attention or inadvertently reinforcing the complainant’s narrative. 

Strategic Takeaways for Employers 

• Don’t let fear of headlines dictate your legal strategy. Evaluate each case based on facts, not just optics. 
• Be measured in your public response. Less is often more, particularly before a tribunal hearing. 
• Plan ahead. Seek early advice from both legal and reputation management professionals. 
• Understand that tribunals are increasingly normalised. Public tolerance is growing, and being involved in a case no longer carries the same stigma it once did. 

As employment disputes become more common, organisations must adapt. With the right strategy, even challenging tribunal cases can be managed without lasting damage to your brand.