Employment Tribunals in England & Wales (2025): What Every Employer Needs to Know
Running a business in 2025 means dealing with more legal risk than ever. Employment tribunal claims are climbing, hearings are taking longer to reach, and compensation figures are edging up. Here’s the state of play — and why it matters for you as an employer.
Claims Are Up
Tribunal claims are rising fast. Between January and March 2025:
42,000 new single claims were filed — up 21% on the same period in 2024².
73,000 multiple claims (often union-backed) also landed — again, up around 21%².
By March, the total backlog stood at 491,000 claims — about 48,000 higher than last year³.
This means there is a far greater chance of facing a claim in 2025 than a year ago.
Hearings Are Taking Longer
If a dispute does go all the way to a tribunal, don’t expect a quick resolution. The average wait from Acas conciliation to a hearing is now around 12 months⁵. Bigger cases (three to five days) are being listed for late 2025 or even 2026⁵.
Even if you think you’ll win, you could be tied up in process and legal fees for over a year.
More Preliminary Hearings
Tribunals are managing their heavy workload by holding more preliminary hearings before the final hearing. These are often on video, but they still add another layer of time and cost¹⁵.
Expect more case-management stages before you even reach a merits hearing.
The Top 3 Reasons Employees Claim
The most common claims this year are:
Unfair dismissal – around 22% of claims⁴.
Breach of contract (usually unpaid notice or holiday pay) – about 14%⁴.
Disability discrimination – roughly 13%⁴.
Dismissal, pay, and disability adjustments remain the hottest legal flashpoints.
How Often Employees Win
Very few claims succeed all the way through to a tribunal judgment. Most settle through Acas or get withdrawn.
Unfair dismissal: Fewer than 1 in 10 claims end with a win at tribunal⁹.
Breach of contract: Only 2–3% of claims get a judgment for the employee⁹.
Disability discrimination: Roughly 3% succeed at hearing⁶.
Overall, just 7–8% of claims filed end in a tribunal win for the claimant¹².
The odds are on the employer’s side — but the process itself is costly in time, fees, and stress.
What It Costs When You Lose
When claimants do win, the numbers can bite:
Unfair dismissal: Average award £13,700, median £6,747, but up to £179,000 in some cases⁹.
Breach of contract: Typically hundreds to a few thousand pounds (capped at £25k)¹¹.
Disability discrimination: Average award £44,400, median £17,200, with one case topping £964,000⁹.
The biggest danger for employers isn’t dismissal or contract claims — it’s discrimination. Awards here are uncapped and can run to six figures.
The 25% ACAS Uplift
If you mishandle disciplinary or grievance procedures, tribunals can increase awards by up to 25%¹⁰. Not every case gets it, but it is a common add-on in unfair dismissal claims where process wasn’t followed.
Failing on process can make a painful award even worse.
Singles vs Group Claims
Singles: 42,000 cases in early 2025 (31% of claims).
Multiples: 73,000 claims (69% of claims), often union-backed and involving hundreds of employees².
Collective claims (like equal pay disputes) can flood the system — and if you’re caught in one, the financial exposure is huge.
What’s Next?
Backlog: Almost 450,000 individuals are waiting for hearings⁵.
Reforms: The proposed Employment Rights Bill would give unfair dismissal protection from day one and extend time limits to six months⁸. Both changes are expected to drive claims even higher.
Employers should act now: tighten procedures, train managers, and avoid giving people reasons to test the system.
FAQ’s
Are awards higher in 2025? Awards vary by claim type; discrimination is uncapped and can be significant.
Do most cases reach a hearing? Only a minority do, but preparation and early resolution matter.
What should I do first if an ET1 arrives? Triage the issues, note the ET3 deadline, and start evidence gathering.
Thrive. Takeaway
2025 is not the year to cut corners.
Tribunals are busier, slower, and riskier. The median unfair dismissal award may be just £7k, but discrimination claims can run to £1m. Add in 25% uplifts for process failures and the message is clear: prevention is cheaper than cure.
At Thrive., I help founders and leaders build workplaces that avoid these risks altogether — no fluff, just practical HR that keeps you out of tribunal and focused on growth.
References
HMCTS, Tribunal Statistics Quarterly: Jan–Mar 2025 – receipts data.
HMCTS, Annual Tribunal Statistics 2024/25.
Brodies LLP, Latest employment tribunal statistics: claims are on the rise (2025).
Tees Law, Employment tribunal backlog in 2025: practical insight.
Mills & Reeve, 2023/24 Tribunal Awards Analysis.
The Times, Employment tribunal reforms risk surge in claims (2025).
HMCTS, Employment Tribunal Awards 2023/24.
Acas, Code of Practice uplift guidance.
HMCTS, Tribunal Annex C tables (contract claim cap).
Acas, Early Conciliation & ET Outcomes Jan–Mar 2025.
HMCTS User Group Notes, Case management and preliminary hearings (2025).
