Employment Tribunal Delays and Backlogs: What SME Employers Need to Know

Employment tribunal delays are becoming a real concern for employers and employees.

The employment tribunal system is there to help resolve workplace disputes, including claims for unfair dismissal, discrimination, unpaid wages, whistleblowing, breach of contract and other employment rights issues. However, the system is under significant pressure.

The latest Ministry of Justice statistics show that employment tribunal claims are taking longer to be dealt with, with more claims being received than the tribunal system is able to resolve. By the end of March 2026, there were around 64,000 single employment tribunal claims still open.

There were also hundreds of thousands of multiple claims sitting within the wider employment tribunal caseload.

For employers, this means a workplace dispute may not be resolved quickly, even where the business believes it has acted reasonably and has a strong defence.

With further employment law changes coming under the Employment Rights Act 2025, the number of claims could increase further. The Government’s own analysis estimates that the reforms could lead to a significant increase in cases going through the individual enforcement system, including more Acas early conciliation notifications and more employment tribunal claims.

Why are employment tribunal delays a problem?

Tribunal delays are not just a problem for employees waiting for an outcome. They also create practical, financial and operational issues for employers.

A claim that takes months or years to resolve can remain in the background of the business for a long time. Managers may need to keep revisiting old events, HR may need to continue managing correspondence and legal representatives may need to prepare documents, witness statements and hearing bundles long after the employment relationship has ended.

The longer a case takes, the harder it can become to deal with properly.

Witnesses may leave the business. Managers may forget important details. Documents may become harder to find. Email accounts may have been closed. Systems may have changed. This can make it more difficult for an employer to explain clearly what happened and why decisions were made.

That is why good HR records are becoming even more important.

The impact on employers

For employers, tribunal delays can create several risks.

The first is cost. Even where an employer is confident in its defence, legal fees, management time and HR support can build up. Preparing a tribunal case properly takes time. Documents need to be gathered, witness statements prepared, deadlines met and hearings attended.

The second is disruption. Managers and employees who were involved in the original events may need to give evidence. This can take them away from their normal duties. It can also be unsettling for the workplace, particularly where the claim relates to sensitive issues such as discrimination, harassment, whistleblowing or dismissal.

The third is reputational risk. Employment tribunal judgments are generally public. Even before a final judgment, a dispute can create concern if clients, customers, employees or potential recruits become aware of it. This is especially important for SMEs, where reputation and local relationships often matter.

The fourth is evidential risk. A case that is heard two, three or four years later may depend heavily on documents and witness recollection. If the employer has not kept proper records, it may struggle to show that it acted fairly and reasonably at the time.

Why the Employment Rights Act 2025 matters

The Employment Rights Act 2025 is expected to increase the importance of good HR processes and result in even more tribunal claims.

One of the key changes is the reduction in the qualifying period for ordinary unfair dismissal claims from two years to six months. This is due to take effect from 1 January 2027.

This means employers will need to take greater care when managing probation periods, performance concerns, conduct issues and dismissals involving employees with shorter service.