Employment: Tribunal Delays and Employment Rights Bill Reforms: A Perfect Storm for Employers?

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Labor & Employment: Employment: Tribunal Delays and Employment Rights Bill Reforms: A Perfect Storm for Employers?

3 September 2025


The employment tribunals are currently reporting significant delays, with many claims taking increasing amounts of time to be heard. The upcoming changes in the Employment Rights Bill, which will bring about wide-reaching changes and reform to the landscape of employment law, including a planned extension of tribunal time limits, is likely to add further pressure on the system. For employers, this will bring about more uncertainty and a greater need to plan ahead.

This article will cover the current status of the employment tribunal backlog, the impact of upcoming changes to legislation and some key considerations for employers and HR professionals to remain prepared.

The Employment Tribunal Backlog in 2025

In the most recent quarterly update published by His Majesty’s Courts & Tribunals Service (Q4 2024/25, January to March 2025), figures show a significant increase in the ongoing backlog of employment tribunal claims. There were 37,000 claims received by the employment tribunals in Q4 2024/25, with 11,000 being claims with a single claimant and 26,000 being claims with multiple claimants. Whilst the employment tribunals disposed of 15,000 claims, at the end of Q4 2024/25 the number of open claims reached 491,000, up from the 467,000 open claims previously reported in Q3 2024/25.

The currently reported annual figures for 2024/25 show that receipts of new claims have consistently outpaced the number of claims being resolved, with the open caseload increasing year-on-year by 32% for single claims and by 9% for multiple claims. Although disposals of single claims did increase by 6%, the number of disposals of multiple claims fell sharply by 49%.

These numbers underline the scale of the backlog and it is anticipated that this trend will continue. The employment tribunals are likely to remain under continued strain, and with the potential impact of upcoming changes to legislation, this may serve to exacerbate the current backlog by increasing the number of claims being made, as the changes come into force.

For employers, this represents an increasing challenge in managing workplace disputes and claims, with the backlog meaning that ongoing employment tribunal claims could remain open for extended periods of time. It will therefore be crucial for employers to implement and maintain effective strategies to manage disputes and claims over a longer period of time particularly with the upcoming changes providing more scope and time for claimants to bring claims.

The Employment Rights Bill and Roadmap – A Phased Rollout of Changes

One of the Government’s key manifesto pledges included a promise to introduce new legislation to improve the rights of working people, which has since taken shape as the Employment Rights Bill (“ERB”). The ERB is currently due to receive its third reading in the House of Lords, scheduled to take place on 3 September 2025 with Royal Assent currently expected this autumn.

On 1 July 2025, the Government published its “Employment Rights Bill Implementation Roadmap”, setting out the current position on the numerous reforms planned in the ERB and the current timescales for when these changes will come into force. Whilst the ERB is continuing to progress, a number of its most significant measures will be introduced in stages, throughout 2026 and 2027, meaning the impact of the changes on employers will be spread out across a longer period of time.

Some of the key measures set for phased implementation include:

From April 2026

  • A day one right to paternity leave and unpaid parental leave
  • Doubling the maximum period of the collective redundancy protective award (from 90 days to 180 days’ pay per employee)
  • Whistleblowing protections
  • Changes to statutory sick pay limits and waiting periods
  • Establishing the “Fair Work Agency”

From October 2026

  • Extension of employment tribunal claim time limits from three months to six months
  • Restrictions on “fire and rehire” practices
  • Requirements for employers not to permit the harassment of their employees by third parties and to take all reasonable steps to prevent sexual harassment of their employees

From 2027

  • A day one right to protection from unfair dismissal
  • Additional rights for pregnant workers
  • Changes to the collective redundancy consultation threshold
  • Changes to flexible working and bereavement leave
  • Restrictions on zero-hours contracts

[For further insight on the key changes, see our recent coverage of the ERB and what you need to know here]

The Government has opted for this phased approach with the aim of allaying concerns, softening the impact on businesses and to allow additional time to prepare for the changes arriving with the ERB. However, it is also clear that these changes, including the longer employment tribunal time limits, stricter rules on zero-hours contracts and in particular, the expanded day one right to protection from unfair dismissal, will add further pressure on the employment tribunals and on employers in the short- to medium-term and beyond.

In its “Economic Analysis” of the ERB published in October 2024, the Government identified that the changes would result in “increased funding pressures on the Employment Tribunal system.” In addition, impact assessments published by the Department for Business and Trade on the day one right to protection from unfair dismissal and the extension of tribunal time limits on 21 October 2024 and 4 March 2025 respectively, found that whilst access to justice and time allowed for negotiation between employees and employers would improve, the overall impact to businesses would be “expected to be negative and driven by costs associated with additional early conciliation and tribunal cases.” Employers should therefore look to take action to prepare now, to navigate the reforms and understand the individual impact, costs and risks to business operations and the workforce.

Managing the Impact – Practical Steps for Employers

It is clear that the combination of ongoing employment tribunal delays and the upcoming ERB will bring about significant changes to the way employers approach and manage claims. Extended time limits may result in claims remaining unresolved for longer periods of time, whilst enhanced rights and changes in the ERB may lead to an increase in the number and complexity of claims.

Employers will need to be adaptable and take proactive steps to minimise risk and to stay updated and compliant with the upcoming changes.

Practical steps that employers could consider include:

  • Providing targeted training, communications and updates to staff and in particular managers and key decision makers, on the new rights and obligations in the ERB.
  • Enhancing data retention policies and procedures to ensure evidence relating to disputes and claims is retained and readily accessible over extended timeframes.
  • Reviewing claims management practices to allow for adequate planning and arranging of witness statements early in the process of any new claim, as ongoing delays could mean the gap between the relevant issues and the date of the hearings may be increased over extended periods of time.
  • Reviewing employment contracts and policies to ensure that contracts, staff handbooks and other key workplace policies are compliant with the upcoming changes to legislation as they come into force.

Proactive planning, action and taking timely legal advice where appropriate, will allow employers to adapt and reduce disruption and risk, as the employment law landscape continues to evolve in the coming months and years.

Broadfield is uniquely positioned to assist with these practical steps, including providing bespoke training, reviewing and updating policies and contracts and providing in-depth support at all stages of disputes and employment tribunal claims, in addition to other informed advice. We are ready to help employers prepare and respond effectively to these developments.

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