Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
New claims to UK employment tribunals stemming from the government’s sweeping upgrade of workers’ rights will pile pressure on a system that is already close to breaking point, said Labour MPs and lawyers.
While the package of reforms amounts to the most radical shake-up of UK labour rights in a generation, businesses and unions say it will fail unless the rules are enforced and workers have a realistic route to seek redress.
“Making work fairer requires fixing our broken labour market institutions as well as new laws,” said Peterborough MP Andrew Pakes. “Mending our tribunal system sits at the heart of this,” he added.
The open caseload in employment tribunals had jumped to 37,000 for single claims by June, up 18 per cent on the previous year, according to the latest official data. Tribunal hearings in some parts of the country are delayed until 2026.
According to the government’s assessment, claims to the tribunals could increase 15 per cent as a result of the reforms.
This would mean an extra 4,750 claims to tribunals each year and an additional 875 cases going to a full hearing that required judicial time.
This month, ministers unveiled the employment bill, which will introduce reforms including “day one” rights in jobs, an end to fire and rehire practices and the modernisation of trade union laws.
The government has said that its plan to create a new Fair Work Agency, bringing together existing enforcement agencies and extending their powers, will alleviate the burden on tribunals.
But the UK system generally relies on individuals enforcing their rights through the courts and research has shown that lower-paid workers are far less likely to do so.
Former employment lawyer Jon Pearce, now MP for High Peak, agreed that delays in the tribunal system were a “huge concern” and suggested moving to judge-only hearings, removing the requirement for lay members to be involved, to expedite the process.
He also recommended strengthening the Advisory, Conciliation and Arbitration Service to resolve more disputes before they reach tribunal.
Lawyers also warned tribunals were beset by a shortage of judges and other staff and that resourcing constraints were leading to last minute cancellations of hearings.
Jo Keddie, partner at law firm Forsters, said she had “serious concerns about the impact” of the government’s planned reforms. In particular, Keddie said the creation of a new right for workers not to be unfairly dismissed from the start of their employment would result in a claims “influx”.
Without “urgent resources”, she warned, “there will be yet further delays and cancellations”.
The government is increasing the timeframe in which a claim can be brought from three to six months, in the hope it will allow more disputes to be resolved before proceeding to tribunal.
Senior trade union leaders have meanwhile warned that failing to tackle cuts to state enforcement agencies under the Conservatives risked undermining Labour’s drive to improve workers’ rights.
Paul Nowak, general secretary of the Trades Union Congress, stressed the need for the government to “properly resource” the Fair Work Agency to benefit both workers and businesses.
A government spokesperson said the state was “fully committed to tackling the employment tribunal backlog, and we will ensure that Acas and the employment tribunals have the resources they need so workers can effectively uphold their rights”.
