Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusEmployee relationsDispute resolutionLatest NewsDiscipline and grievances

End of furlough will lead to spike in tribunals

by Jo Faragher 5 May 2021
by Jo Faragher 5 May 2021

Employers could see a surge in tribunal claims when the government’s furlough scheme ends in September this year, according to a study by insurance brokerage Gallagher.

Its Business Litigation Index found that more than half (56%) of businesses have faced accusations or claims of unlawful behaviour, with employee disputes making up the bulk of these cases (44%).

Employment tribunals

Employment tribunal claims leap by a fifth during lockdown

Average wait time for tribunal stands at nine months, claim lawyers 

Complaints around injury, stress and illness at work have increased since 2016, it said, and are expected to remain at the same level or increase in 2021. Sectors facing the most lawsuits include IT and construction.

Gallagher predicts that employment-related litigation and redundancy claims will rise when the furlough scheme ends on 30 September as employers are forced to make staffing cuts they had been putting off.

Wrongful dismissal claims rose 17% over the five-year period, discrimination 17%, workplace harassment 13% and constructive dismissal 10%, the researchers found.

The company’s study also found that there had been a rise in claims against companies due to data leaks, with these lawsuits rising threefold between 2016 and 2020, and exacerbated by the move to remote working. It also believes there will be an increase in disputes from businesses who sought pandemic-related business interruption insurance but did not receive a payout.

Gary Fletcher, south managing director of Gallagher’s retail division, said: “Litigation is being fuelled, in part, by supply chains, Covid-19 and Brexit but in addition to this, economic downturns also usually produce a boom in disputes.

“The situation has created a perfect storm with 64% of organisations expecting business litigation to either remain at the same volume or increase this year.”

Asha Kumar, employment partner at Keystone Law, pointed to the significant backlog in cases experienced by the tribunals service.

She said: “While the Tribunals Judiciary has recently issued its roadmap to recovery to help tackle the backlog, we expect with the furlough scheme ending later this year, many UK businesses and the Tribunals service are bracing themselves for an influx in further employment tribunal claims.

“The rising number of employment tribunal claims resulting from unfair dismissal, breach of contract and redundancy is not unexpected due to the adverse economic conditions arising from the pandemic, with many businesses down-sizing, restructuring and/or closing down.”

Kumar urged employers to adhere to fair processes while making tough decisions over the future of jobs.

“Generally, employment tribunals would expect: employees to receive as much prior warning that their job is at risk; a fair selection process is carried out; and that employees are offered alternative employment, if available. Although taking these measures cannot guarantee against litigation, they do protect businesses if litigation is pursued,” she advised.

“It is also worth noting that, if there is an influx of cases as predicted, despite the Tribunals service’s plans to rebuild operational resilience, disputes will inevitably continue to take many more months to resolve from when dismissal decisions were originally taken.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“As such, it is vital that businesses keep a paper-trail which explains and justifies the reasons for decisions taken, showing how they have tried to support their employees.”

Employee relations opportunities on Personnel Today

Browse more Employee Relations jobs

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Look beyond absence rates to understand true state of staff health
next post
Investment banks prepare for office return

You may also like

Company director wins £15k after being told to...

4 Jul 2025

HR manager with ‘messy’ work loses discrimination case

25 Jun 2025

Man who used company credit card for himself...

23 Jun 2025

AI company did not racially discriminate against Chinese...

20 Jun 2025

Barts nurse told to remove watermelon image claims...

19 Jun 2025

WFH employee who falsified timesheets loses unfair dismissal...

16 Jun 2025

Sleeping security officer wins £20k for unfair dismissal

16 Jun 2025

Menopause claims triple in two years, tribunal figures...

16 Jun 2025

The employer strikes back: the rise of ‘quiet...

13 Jun 2025

Former employees of Wilko gain £2m payout

13 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+