Law firms are advising businesses to keep abreast of changes in employment laws, highlighting the significant time investment required to manage employment claims.
A recent study by Birketts has found that employers in England and Wales have spent, on average, almost five weeks dealing with Employment Tribunal cases over a two-year period, as reported by .
The report shows unfair dismissal is leading among common claim types, accounting for 23.9%, with disability discrimination claims following closely at 22%.
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The legal specialists at Birketts remarked on the complexity of cases they handle, noting it's unusual to see an ordinary unfair dismissal claim in isolation; these often accompany other complaints such as whistleblowing, harassment, or maternity-related discrimination.
The research underscored that most claims were resolved before reaching full trial, and nearly 25% were settled just the day before the main hearing.
For employers, Birketts recommended evaluating the prospect of early settlement as a cost-effective strategy to avoid lengthy preparation for a full tribunal.
Catherine Johnson, employment team partner at Birketts, commented on the impact of these claims on the commercial sector: "employment claims have become a costly burden for businesses."
She cautioned that "with a backlog of employment claims in the courts and tribunals, and the introduction of new and strengthened workplace rights being a central element of the Government’s policy agenda, staying ahead of the rapidly changing employment law landscape has never been so important for businesses and their HR leaders."
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The government's employment overhaul, announced in the Autumn Budget last October, has significant implications for businesses.
"Failing to tackle the potential for employment claims early on is already proving costly to businesses and could get worse at a time when employers are already grappling with increased costs from the Autumn Budget," she warned.
This concern is compounded by the existing backlog of cases at the Employment Tribunal, which City AM reported on last August, with one lawyer expressing concerns that the "situation may worsen when having to deal with a whole new set of laws."