Soundbite: Tribunal delays and increased enforcement, what this means for employers

You may have seen recent coverage, including on the BBC this week, with the Employment Lawyers Association (ELA) highlighting the growing delays within the Employment Tribunal system.

The position is becoming increasingly stark with some claims now taking up to four, and in extreme instances even five years, to reach a final hearing.

The Employment Lawyers Association has described the situation as unsustainable and is calling for reform, including mandatory mediation and greater use of early, informal resolution. For employers, this is more than just a delay issue, it signals a real shift in how workplace disputes need to be managed.

The reality is that disputes are now sitting unresolved in some cases for years. That brings ongoing legal costs, significant management time and uncertainty, alongside practical challenges such as witnesses leaving the business and evidence becoming harder to rely on over time. It may also detrimentally impact those businesses that may be looking to sell, where ongoing legal disputes remain outstanding.

At the same time, the wider enforcement landscape is changing. The introduction of the newly formed Fair Work Agency last month marks a move towards more proactive, state-led enforcement of employment rights. This includes the ability to investigate employers, request information and documentation evidencing compliance, issue notices of underpayment, inspecting workplaces and taking action to enforce compliance without relying on individuals to bring claims themselves.

Taken together, these developments create a clear direction of travel. In practice, this means a “wait and see” approach to disputes which arguably carries far greater risk than it has in the past. For many employers, there is now a strong case for dealing with issues earlier and more pragmatically, whether that is through robust internal processes, early resolution or where appropriate, considering workplace mediation and/or settlement of cases. Relying on the Tribunal system to resolve disputes is arguably becoming less workable, at the same time as external scrutiny via the Fair Work Agency increasing. Taking control of issues at an earlier stage is likely to be more important than ever.

If you would like to discuss the impact of these delays on your business, please get in touch with a member of our team.