Manufacturing firms are wrestling with a mounting wave of Employment Tribunal claims, fuelled by economic pressures, which are poised to become even more demanding under the Employment Rights Bill.
Fresh research from law firm Birketts, exclusively provided to City AM, shows that manufacturing companies encountered an average of 39.44 tribunal claims during the previous two years, as reported by .
Whilst this number sits near the cross-sector average, the nature of claims and their resolutions demonstrate unique trends within the manufacturing industry.
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The most frequent claims lodged against manufacturing employers included constructive unfair dismissal, redundancy dismissal, and transfer of undertakings (TUPE)-related disagreements.
Harassment claims were also recorded at elevated levels compared to other industries, sparking worries about adherence to recent legislative amendments.
The forthcoming Employment Rights Bill is poised to establish 'day one' entitlements to pursue unfair dismissal and broaden safeguards against harassment. Consequently, Birketts cautioned that the manufacturing sector might encounter a substantial rise in both the quantity and intricacy of claims.
Catherine Johnson, partner in Birketts' employment team, said: "The manufacturing sector is under immense pressure – from rising operational costs to evolving legal duties."
"The introduction of 'day one' rights and expanded harassment protections will likely lead to more claims, particularly in areas like redundancy and workplace conduct."
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"Employers must act now to strengthen grievance procedures, train line managers effectively, and prepare for the new legal landscape. Tribunal claims are not just a legal risk; they're a drain on time, morale, and resources," she added.
The Marmite Bill
Just last week, leading business organisations cautioned the new business secretary, Peter Kyle, that immediate amendments to the Bill were essential to prevent Britain's employment market crisis from deteriorating further.
City AM offers a comprehensive analysis of all developments surrounding the Employment Rights Bill since its launch.
The legislation remains at the House of Commons following consideration by the House of Lords.
In July, peers supported a Conservative-backed modification to the 'day one' entitlements clauses, establishing a six-month qualifying period rather than immediate implementation.
The Bill did not secure Royal Assent before both chambers entered recess for the party conference period.
Agreement between both Houses on the final wording is required, with the legislation shuttling between them until accord is reached.
The parliamentary break extends until 13 October, meaning Royal Assent cannot occur before mid-October at the earliest.