Increasing concern about Employment Tribunal backlog

What is the impact of a backlog of Employment Tribunal cases and how can this be tackled? On 11 June 2026, the Government published Employment Tribunal statistics for the latest quarter (January to March), which we delve into below.

Compared to 2024/25, single Employment Tribunal receipts increased by 39% in 2025/26 and disposals decreased by 12%. Open caseload also increased by 55% over the same period. What does this mean in practice? Put simply, the number of claims continues to rise while fewer claims are being disposed of. This results in delays in hearings and an ever-growing backlog at Employment Tribunals. It is reported that, in certain regions such as London and the south-east, cases are being listed for hearings in 2030.

The Law Society recently issued a press release about its concern that the severe delays are denying both employees and employers access to justice. It also said that prolonged periods of uncertainty while waiting for a hearing are “likely to take a high toll personally and financially, hitting both individuals and businesses hard”.

Interestingly, the quarterly statistics reveal that three types of claims make up around 52% of total complaints receipts. Topping the list is unfair dismissal at 23%, then disability discrimination at 16% and unauthorised deductions from wages at 13%.

Employment Tribunals are already under considerable pressure and that is unlikely to improve in the near future. With changes to Employment Tribunal time limits imminent and the high-profile changes to unfair dismissal in January 2027, there is widespread concern that the number of claims will surge and the current backlog and pressure on Employment Tribunals will increase significantly.

Employment Rights Act 2025

There are three specific measures in the Act which are likely to have an impact on the number of claims:

Extension of Employment Tribunal time limits

At the moment, most Employment Tribunal claims must be brought within three months but this time limit will be increased to six months. We are still waiting for confirmation of when the time limit extension will take effect. It is unlikely to be retrospective and it is expected that the extension will apply to claims arising on or after 1 October 2026.

One view is that the extension of the time limit gives the parties in dispute a longer period to resolve the issues, and more time to engage in conciliation. An alternative view is that individuals will have much more time to decide whether or not to bring a claim, creating greater uncertainty for employers.

Reduction of the qualifying period for unfair dismissal

The current two year qualifying period for protection from unfair dismissal will be reduced to six months and this change will be implemented on 1 January 2027. The Government has confirmed that anyone with six months’ or more service on that date will gain protection from unfair dismissal immediately. There are concerns that reducing the qualifying period will lead to an increase in claims. In anticipation of the change, many employers are tightening up their recruitment procedures. Many are also reducing their probationary periods and requiring managers to deal with any performance or conduct issues during probation more proactively and at an earlier stage.

It’s also worth noting that the Act does not make any changes to the existing “day-one” protection in automatic unfair dismissal cases such as whistleblowing or health and safety dismissals.

Removal of the unfair dismissal compensation cap

The cap on the compensatory award is currently the lower of 52 weeks’ pay or £123,543.

The compensation cap will be removed completely and will apply where the effective date of termination is on or after 1 January 2027. There are concerns that removing the compensation cap could result in senior executives or highly paid employees bringing an unfair dismissal claim, which they would be disinclined to do at the moment because of the cap on compensation. There are also concerns that removing the cap will impact on settlement negotiations, with individuals expecting higher sums when the cap is removed.

There is no change to the unfair dismissal basic award which is assessed taking into account age, length of service and pay capped at £751 a week.

Artificial intelligence

One factor contributing to delays is the use of AI tools by employees to draft Employment Tribunal claims. There is some evidence that this has increased both the number of claims and their length and complexity.

AI can be a useful tool for employees and employers alike, and may help to increase access to justice. However, grievances and claims drafted by AI often fail to focus on the key issues or key incidents. In addition, the use of legalese and citations of non-existent cases (through “AI-hallucination”) place a significant burden on employers and Employment Tribunals alike. The need for significant case-management interventions and the risk of unnecessarily long hearings, excessive numbers of witnesses and complex judgments all add to potential delays in an overburdened Employment Tribunal system.

On 31 October 2025, AI Guidance for Judicial Office Holders was published. Interestingly, the parties and Judges are not precluded from using AI and it can be helpful, for example, where a claimant is unrepresented. However, it is important to remember the guiding principle in Employment Tribunal cases of the “overriding objective” which includes:

Dealing with cases proportionately to the complexity and importance of the issues
Avoiding delay
Saving expense

Employment Tribunals will expect employees to focus on their core complaints and claims and the key incidents. Likewise, employers’ responses should be suitably focused and concise. Witness statements must be in witnesses’ own words and true to the best of their knowledge and belief – there is an impact on their credibility and a risk on costs if they are not. On that point, there are potential costs consequences where (for example) a party conducts proceedings unreasonably. This might include relying on pleadings or witness statements which are solely AI generated and which are not relevant, accurate or properly checked or include significant errors through “AI hallucination”.

Comment

The pressure on Employment Tribunals was recently discussed in the House of Lords (23 June 2026) during a debate about the extension of the Employment Tribunal time limits and how this might result in additional claims.

The Government outlined the steps being taken regarding concerns about the capacity of the Employment Tribunal system:

It has established a dispute resolution task force comprising representatives from business, trade unions, the legal profession and the third sector. This will consider measures designed to improve the efficiency, effectiveness and resilience of the system.
The recruitment of new Judges and non-legal members.
The enforcement rights of the Fair Work Agency (FWA) which was established on 7 April 2026. From 2027, the FWA will be able to enforce key statutory rights such as holiday pay and statutory sick pay making “enforcement faster and more accessible for workers”.

ACAS will be consulting on a revised Code of Practice on Disciplinary and Grievance procedures in due course to reflect the changes to unfair dismissal and removal of the compensatory cap. Finally, the next quarterly statistics will be published on 10 September 2026 and it will be interesting to see whether the same trends are evident – it seems likely that they will be.