Majority of Employment Tribunal Claims Settle Prior to Final Hearing
New research conducted by Birketts during the two years between July 2022 and July 2024 has found that the majority of employment tribunal claims settle prior to reaching a final hearing.
The main findings of the research were:-
- 62% of employment tribunal claims never reach a final hearing, with almost a quarter (24%) settling just one day before the scheduled hearing
- Despite settling early, employers spent 4.8 weeks handling a tribunal claim on average, highlighting the significant amount of resources that end up being invested on these matters
- Welsh employers have the highest claim rate, averaging one case every two weeks.
- Unfair dismissal made up 24% of the total (the highest), closely followed by disability discrimination cases (22%)
The most recent release of Tribunal Statistics Quarterly, for the period April – June 2024, found that the employment tribunal backlog had increased sharply. It found that the number of open / unresolved cases in the employment tribunal increased by 18% compared with the same point a year earlier, whilst the number of disposals fell by 4%. Combined, this led to a increase in the tribunal’s total caseload of 4%.
Other findings from the quarterly statistics on employment tribunal cases included the following:-
- Age discrimination claims averaged £100,000 in terms awards (the highest), while the highest maximum award related to a sex discrimination case (£995,000)
- Employment tribunal cases involving remote working, whistleblowing, and neurodiversity-related claims have seen significant increases
Given the new employment law legislation that is in the pipeline, particularly in relation to the new day 1 rights, this will add to the pressure that is already currently on the employment tribunal system.
The Employment Tribunal Procedure Rules 2024 came into effect on the 6th January 2025, and replace the rules that had been contained in Schedule 1 to the Employment Tribunal (Constitution and Rules of Procedure) Regulations 2013. The need for the changes came about as a result of the transfer of responsibility for making the rules from the Department for Business and Trade (DBT) to the TPC back on the 25th April 2024.
The new Employment Tribunal Practice Directions which had been scheduled to come into force on the 6th January 2025 as well, have been put back. The implementation of the new Practice Directions had originally been timed to come into force with the Employment Tribunal Procedure Rules 2024 simultaneously. The announcement of the delay stated that the changes would not be ready in time. The revised Practice Directions will, among other provisions, prevent Respondents from filing their ET3’s via email, barring exceptional circumstances.
Government Unveils Reforms to Boost Apprenticeship Opportunities
With the aim of reducing the skills gap and boosting economic growth, the Government has announced measures to increase the number of apprentices who qualify each year by up to 10,000.
The changes that were announced include the following:-
- An objective of increasing the number of apprentices who qualify each year by up to 10,000
- The minimum time frame for completing an apprenticeship will fall from 12 months to 8 months
- Firms can now decide whether those over the age of 19 who enrol in apprenticeships are required to earn a level 2 English and maths qualification (equivalent to GCSE) in order to complete it.
- The shorter apprenticeships will be piloted in the healthcare, green energy, and film/TV production sectors.
- Skills England will look to identify which sectors of the economy are best suited to having shorter duration apprenticeships, with priority being given to shortage occupations
Commenting upon the reforms to the apprenticeship system, Bridget Phillipson, the Secretary of State for Education, stated: "Growing the economy and opportunity for all are fundamental Missions of our Plan for Change....Businesses have been calling out for change to the apprenticeship system and these reforms show that we are listening. Our new offer of shorter apprenticeships and less red tape strikes the right balance between speed and quality, helping achieve our number one mission to grow the economy."
