The employment tribunal system is facing unprecedented strain, with a backlog of more than half a million claims raising serious doubts over its ability to cope with an expected surge in cases under Labour’s proposed expansion of workers’ rights.
Latest tribunal statistics for the second quarter of the year, covering July to September 2025, show that active claims — including both single and multiple cases — climbed to 515,000 by the end of September. The number of open employment tribunal cases alone rose to 52,000, a 33 per cent increase compared with the same period last year.
The figures underline the scale of the challenge facing ministers as they push ahead with the Employment Rights Bill, which is designed to strengthen employee protections but would rely heavily on an already overstretched tribunal system for enforcement.
Rob McKellar, legal services director at HR services firm Peninsula, said the data pointed to a system under severe pressure.
“With the current backlog of over half a million claims, and some regions listing cases for 2028, it’s clear that pressure on the tribunal system is higher than ever before,” he said.
Unfair dismissal was the single largest category of new claims during the quarter, accounting for nearly a quarter of cases, with 4,766 lodged. Disability discrimination claims represented 14.8 per cent of the total, while unauthorised deductions of wages made up 12.2 per cent.
McKellar warned that the situation could worsen significantly if the Employment Rights Bill becomes law in its current form.
“The government’s own figures estimate that an extra six million people will gain the right to bring unfair dismissal claims once the bill comes into force, as the qualifying period drops from two years’ service to just six months,” he said.
The legislation, which was diluted last month following pressure from business groups, remains stalled in the House of Lords. Peers are continuing to push for a cap on compensation payouts in unfair dismissal cases, arguing that unlimited awards would further clog the tribunal system.
In a joint statement, six major business groups warned that proposals to loosen limits on compensation risk “exacerbating the challenges facing the tribunal system”, adding to delays that already leave claimants and employers waiting years for resolution.
Despite lingering concerns over some of the bill’s provisions, the business groups said they now believe the legislation should be passed to provide certainty. Downing Street has said the workers’ rights reforms are expected to become law before Christmas.
The mounting tribunal backlog comes against a backdrop of cooling hiring activity. Concerns over employment reform and wider economic uncertainty weighed on recruitment ahead of the budget, with new job adverts falling for a second consecutive month in November. Vacancies dropped by 14.4 per cent from October to 622,156, according to data from the Recruitment and Employment Confederation.
For employers and employees alike, the figures highlight a growing risk that expanded rights may outpace the system designed to uphold them, leaving justice delayed — and potentially denied — as claims continue to pile up.
