The backlog of UK employment tribunal cases has surged to a record level, with the number of outstanding claims rising sharply as the system struggles to keep pace with demand.

Data from HM Courts and Tribunals Service shows that open caseloads reached 68,192 at the end of January, an increase of nearly 50% y-o-y. The figure captures both single and multiple claims, meaning the total number of individual claims outstanding exceeds 500,000.

The figures point to a widening gap between incoming and resolved cases. Over the 12 months to January, almost 50,000 new claims were received, while disposals fell to 27,398, down 19.6% on the previous year. Analysis by ARAG suggests that the rate at which cases are being processed has slowed, adding further pressure to an already stretched system.

The growing backlog comes ahead of a significant change to unfair dismissal rules, due to take effect within the next nine months. The qualifying period of service required to bring a claim is set to be reduced from two years to six months, a move that is expected to increase the volume of cases entering the tribunal system.

Andy Talbot, director of broker, ATE and marketing at ARAG, commented: “Over a year ago, we warned that the employment tribunal system could not cope with the increased demand that the proposed day-one right to claim unfair dismissal would bring.

“The amendment to a six-month qualifying period seemed like a sensible compromise, but it’s clear that employment tribunals are struggling with the volume of claims they are getting now.”

Talbot said the problem was not a new one – nor could it be blamed on the pandemic.

“The backlog of cases has been growing for a decade. We know that the Ministry of Justice has taken steps to increase capacity but, with claims volumes likely to increase next year, it’s difficult to see the situation improving," he noted. “Justice delayed is certainly justice denied, but it also inhibits economic growth. Owners are less likely to invest in their small businesses or hire staff with employment claims hanging over them for years, and such delays are no easier or fairer for claimants.”

The Ministry of Justice has acknowledged the strain on the system and has introduced measures aimed at increasing capacity, although the latest figures suggest these have yet to reverse the trend.

---