Expected increase in claims focuses attention on ET backlog and reform proposals
Amid expectations that the ERA will drive higher claim volumes, three developments from legal experts, an employment justice charity and politicians underline mounting pressure on ETs and signpost potential reforms. Notably, mainstream media is also picking up on an ET system which is perceived to be in difficulty, with the BBC reporting on unprecedented delays leading to long waits for hearings. That report also highlights reform proposals by the Employment Law Association (ELA) reported on below.
• ELA-funded research sets out significant proposals to reshape the ET system. The report positions ETs firmly as a last resort and promotes early resolution as the default. The proposals recommend removing the expectation that employees raise a formal grievance before bringing a claim. Instead, both parties would attempt informal resolution, with financial penalties applying only where they fail to do so. The proposals would replace formal grievance procedures with an “expression of concern” process, allowing an HR mediator to intervene at an early stage. Employers would also treat disciplinary procedures as a last resort. Central to the proposals is a new Employment Resolution Service. This body would provide advice, triage cases, refer matters to the Fair Work Agency, and require parties to engage in conciliation or mediation before proceeding to ET. The proposals would also streamline the ET system to improve efficiency and reduce costs. ETs would allocate claims across three tracks based on value, impose tighter limits on evidence and hearing length, and make greater use of early neutral evaluation to encourage settlement. The report also considers introducing court fees linked to claim value and increasing cost consequences for unreasonable conduct.
• However, a report by the Work Rights Centre challenges perceptions that rising claim volumes have caused ET backlogs. Instead, it identifies structural under-resourcing and an increase in more complex cases as the primary drivers. The report finds no evidence that workers have become more litigious and notes that current claim volumes remain well below levels seen during the 2008 financial crisis. Although the ERA may increase claims by around 18%, the report questions how far the proposed FWA will alleviate ET pressure. While the FWA will strengthen enforcement in areas such as minimum wage and holiday pay, it will only cover a relatively small proportion of claims, estimated at 1.7% of ET claims. ETs will therefore remain the main enforcement route. The authors suggest that expanding the FWA’s remit could reduce ET claim volumes. They also highlight barriers to early settlement, including some employers adopting a “wait it out” approach and employees becoming more confident in bringing claims, sometimes with inflated expectations, after using AI tools.
• MPs raised concerns about the widespread non-payment of ET awards, through a motion supported by 26 MPs. While public data on payment rates remains limited, the motion lists evidence suggesting that around three-quarters of more than 7,000 claimants have not recovered their compensation. The MPs argue that the current claimant-led enforcement model lacks coordination and effective oversight, which undermines the effectiveness of employment rights. It calls on the government to strengthen enforcement through the FWA, including improving data collection, coordinating with regulators, and introducing compensation mechanisms where employers fail to pay awards.
Government publishes evidence on fit notes
The government published the outcome of its call for evidence on reforming the fit note system, highlighting widespread concern that the current approach does not work effectively. While many employees value fit notes for their simplicity and role in documenting reasons for absence, employers reported that employees can obtain fit notes without a face-to-face consultation. Employers also said they need clearer guidance on workplace adjustments, realistic return to work timelines, and greater involvement of occupational health services. Healthcare professionals expressed mixed views, with some stating that they lack the tools or occupational health expertise to assess workplace needs or provide tailored advice. The government has concluded that the fit note process does not function as effectively as it could. From July 2026, the government will begin pilots in four areas across England to test reforms. These pilots will offer up to 100,000 appointments and shift the focus away from sickness certification towards personalised work and health support. The government has said that these pilots mark the first step in its ambition to deliver “radical fit note reform”.
