Summary

Employment Tribunal claims in 2025 are rising significantly, with delays, backlogs, and increased costs for employers.
Common Employment Tribunal claims in the UK include unfair dismissal, discrimination, and breach of contract.
Changes in employment law and increased employee awareness are driving higher claim volumes.
The cost of defending an Employment Tribunal claim is rising, even for claims without merit.
Employment disputes insurance helps businesses manage legal costs, reduce risk and access solicitor-led support from the start of a claim.

Across England and Wales, the number of Employment Tribunal cases has risen sharply. For employers, this signals growing exposure to financial, reputational, and operational risk, making it crucial for employers to have insurance to cover them for any claims made against them.

2025 Employment Tribunal Statistics Make For Worrying Reading

The latest employment tribunal claims statistics 2025 show a notable rise in both single and multiple claims. HMCTS data for Q1 and Q2 confirms that the number of cases lodged this year has already exceeded the 2024 total.

The figures for single claims are as follows:

· In 2024/25 42,000 single claims were received by the Tribunal, an increase of 23% from the previous year.
· The Tribunal dealt with 32,000 single claim cases, an increase of 6%.
· There were 45,000 open single claims at the end of March 2025, up from 33,000 at the same time last year.
In terms of multiple claims:
· In 2024/25 the Tribunal received 2,400 lead multiple case. This is an increase of 23% from the previous year and resulted in 73,000
multiple claims.
· 2,100 lead cases (37,000 multiple claims) were disposed of. This represents a 49% fall in the number of multiple claims disposed of
compared with 2023/24.
· At the end of March 2025, the number of open multiple lead cases stood at 6,800, with an open caseload of 446,000, up from 410,000 at
the same time last year.

Among the most common employment tribunal claims UK are:

Unfair dismissal (22%)
Breach of contract (14%)
Disability discrimination (13%)
Unauthorised deductions from wages (12%)

The Employment Tribunal is under incredible pressure. Claims are taking longer to reach hearing. In many regions, the average wait time from application to full hearing now exceeds 12 months. This creates uncertainty and makes it more difficult for businesses to manage staff exits and disputes confidently.

Reasons Behind the Surge in Employment Tribunal Claims

So why are Employment Tribunal claims increasing UK 2025? There are several key reasons:

A shortage of resources at the Courts and Tribunals.
Post-pandemic shifts in working practices, with hybrid work creating new challenges around conduct, supervision, and fair treatment.
Increased employee awareness of legal rights, supported by online resources, unions, and third-party litigation funding.
Greater scrutiny of workplace culture, particularly around equality, inclusion, and whistleblowing.
Economic uncertainty, which often leads to more redundancies and disputes.

All of this has created a climate where employees are more likely to take legal action, and employers face expensive and time draining claims even when they have acted in good faith.

The Risks and Costs for Employers Facing Employment Tribunal Claims

The cost of defending an employment claim can be significant. Even if the employer wins, the legal fees can easily reach £10,000 to £15,000. If a claim is successful, the total cost may include legal defence, Tribunal awards, and settlement agreements.

Employers also face indirect risks:

Lost management time spent gathering documents, preparing statements, and attending hearings
Reputational damage, particularly if the claim receives local or national media coverage
Strained employee relations and damaged internal morale

When a case drags on due to Tribunal delays, the financial impact of employment disputes for businesses becomes harder to contain. Many employers now settle claims early, not because they accept liability, but to minimise disruption.

Wrapping up

The growing number of Employment Tribunal cases is not a temporary spike. It reflects permanent shifts in the legal and workplace environment.

Recent high-value claims and increasing public scrutiny show that any employer can find themselves in the spotlight. For businesses of all sizes, the cost of waiting until a claim is made is often far higher than preparing in advance.

We can provide Employment Disputes Insurance schemes to protect your clients https://albionlegal.co.uk/our-solutions/employment-disputes-insurance