Increasing Court Caseload Looms before Implementation of Labor Reforms
Springing Up Strife: Employment Tribunal Backlog Skyrockets as Employment Rights Bill Hovers on the Horizon
The Employment Tribunal's stack of cases has seen a staggering 28% increase over the past year, leaving the government in a precarious position leading up to the much-anticipated, highly contentious Employment Rights Bill.
According to data from HM Courts & Tribunals Service, an astounding 49,800 cases are currently in limbo, waiting to be heard by a Tribunal in the final quarter of 2024. This marked a significant leap from just 39,000 cases in the same period of 2023.
The looming Bill, boasting a series of employment reforms, including the termination of exploitative zero-hour contracts, prohibiting fire and rehire tactics, and extending employment rights as soon as an individual starts a new job, is nearing its final stages in Parliament.
Joe Beeston, a partner at Forster's, stated that the present Tribunal system is under immense strain. "Matters are dragging on for an unacceptable length of time to reach a judge," he explained. The situation is further aggravated by last-minute hearing rescheduling, often pushing resolutions uncomfortably far into the future.
Beeston added that "this predicament is likely to be exacerbated as the Employment Rights Bill makes its way into law, anticipating a surge in claims before the tribunals."
Last month, it was reported that employment lawyers are in high demand, and law firms are aggressively expanding their practices. A report by recruitment consultant EJ Legal and labour market data analytics firm Vacancysoft showed that employment law vacancies surged an impressive 34% in 2024.
This escalating tribunal backlog comes as no surprise, given that City AM already reported, back in August of 2023, that the Employment Tribunal was already grappling with a backlog from the pandemic. One lawyer raised concerns about the potential worsening of the situation when pitted against an influx of new laws.
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- Rising claims volume due to expanded rights and tighter regulations under the Employment Rights Bill
- Longer processing times, with proposed six-month limitation periods and mandatory ACAS conciliation pauses that increase awareness of disputes and lengthen case timelines
- Resource strain on the Tribunal that could lead to further delays
The anticipated changes, such as day-one claim eligibility, stricter zero-hour contract rules, and the Fair Work Agency's ability to file claims without employee consent, may compound the delays. Moreover, the proposed expansion of claim limitation periods to six months from three, coupled with ACAS conciliation pauses, may give employees up to 8.5 months to submit claims.
Current delays are likely to worsen as new claims pour in under the Bill. Employers may face escalating costs and prolonged uncertainty, while expanded employment teams at law firms struggle to address the influx of cases and tribunal inefficiencies like adjourned hearings. The government is facing a potentially daunting task balancing the need to address backlogs with implementing reforms that may exacerbate the issue, risking a "catch-22 scenario." Ultimately, the combination of a growing claims volume and enduring inefficiencies suggests that the tribunal backlog will continue to be a critical issue long after the Bill is enacted.
- The Employment Rights Bill, set to address various employment reforms, is expected to lead to a surge in claims, compounding the existing tribunal backlog.
- The proposed six-month limitation periods and mandatory ACAS conciliation pauses, aiming to increase dispute awareness, may extend case timelines further, exacerbating the tribunal backlog.
- The resource strain on the Employment Tribunal is likely to worsen due to the influx of new cases resulting from the Employment Rights Bill, potentially leading to more delays.
- The government faces a challenging task of addressing the existing backlog while implementing reforms, such as day-one claim eligibility and stricter zero-hour contract rules, which may contribute to the ongoing problem, creating a potential "catch-22 scenario."
