Key facts
- Employment tribunals in England and Wales received a record 70,000 cases from April to June.
- The Employment Tribunal system faces a backlog of over half a million claims.
- New employment law reforms, including a reduced qualifying period for unfair dismissal claims, are expected to increase case volumes by 15-17%.
- The Employment Rights Act 2025, enacted on December 18, 2025, introduces new employee rights.
- Some cases are being listed into 2027/2028 due to judicial and administrative capacity issues.
- 44% of employers surveyed by RSM UK indicated they would be more cautious with recruitment due to new unfair dismissal rules.
The UK's employment tribunal system is facing unprecedented strain, with a record 70,000 cases filed in England and Wales between April and June, according to the latest statistics. This surge is attributed to new employment law reforms, including the Employment Rights Act 2025, which received Royal Assent on December 18, 2025. These reforms are set to introduce a raft of new employee rights throughout 2026 and 2027.
A key change is the reduction of the qualifying period for unfair dismissal claims from two years to six months, effective January 2027. The Act also lifts the compensation cap on such claims. The UK Government estimates this will grant an additional 6 million individuals the right to bring unfair dismissal claims, potentially increasing case volumes by 15-17%.
This influx of claims is expected to exacerbate the existing backlog, which already exceeds half a million cases. Waiting times for hearings are increasing, with some cases now being listed into 2027 and 2028. This prolonged uncertainty can lead to lost evidence, difficulty contacting witnesses, and fading memories. RSM UK research indicates that 44% of employers are becoming more cautious with recruitment due to the new unfair dismissal rules, with some considering more off-payroll workers or temporary recruitment freezes.
Legal experts and researchers express concerns about access to justice and the principle of timely hearings. They are calling for increased government funding and investment in the Employment Tribunal system, including the recruitment of more judges and administrative support, to cope with the anticipated rise in claims.