Three out of five claims before final hearing are settled by the tribunal

According to recent figures, more than half (62%) the employment tribunal cases were settled prior to their final hearing.

A study by the law firm Birketts that looked at a period of two years from July 2022 until July 2024 also revealed that 24% HR teams reported that claims were settled on the day before an hearing was scheduled to begin.

Employers spent an average of 4,8 weeks in the past two years on the handling of such claims, despite a high percentage of claims being settled without them having been fully heard.

According to a survey of 500 HR professionals from England and Wales, the majority of claims were brought against organizations in Wales. The average was nearly one claim per fortnight with a total of approximately 45.5.

Nearly one-fourth (24%) of all claims were for unfair dismissal. Disability discrimination was the second most common claim, accounting for more than one out of five (22%).

Catherine Johnson, a partner in Birketts employment team, commented on the findings: “Employment complaints have become a burden to businesses, both financially and in terms of resources needed to deal with them. Many managers see grievances and disciplinary actions as an inconvenience, and rush to complete an investigation. This increases the chances of a successful complaint. It may be that managers lack the necessary experience or training to conduct effective investigations and discipline.

She said that employers should act now, especially given the backlog in employment claims at the courts and tribunals.

Staying ahead of the rapidly evolving employment law landscape is more important than ever for HR leaders and businesses. Johnson said that failing to address the possibility of employment claims as early as possible is already costing businesses. This could become worse when employers are already dealing with the increased costs from this Autumn Budget.

Birketts, in light of this research, believes that employers should implement clear workplace policies and provide line manager training. They must also maintain clear communication between management and their employees.

The report advised employers to make a decision early on whether settling early is more cost-effective and desirable, as this would reduce the amount of time and money spent preparing for an entire hearing.

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