Unfair dismissal is behind nearly 1 in 4 tribunal cases and could cost businesses almost £200k to settle
The data comes from the experts at CharlieHR, the all-in-one HR software for small businesses, who have highlighted the most common employment tribunal claims facing businesses, how likely different cases are to settle, and the financial consequences when disputes reach tribunal.
The most common tribunal cases
Tribunal Reason | Total Cases |
Unfair dismissal | 9,173 |
Unauthorised deductions (formerly Wages Act) | 4,930 |
Disability discrimination | 4,903 |
Breach of contract | 4,454 |
Working Time Directive | 2,961 |
Public Interest Disclosure | 2,140 |
Sex discrimination | 1,962 |
Race discrimination | 1,936 |
Redundancy pay | 1,067 |
Age Discrimination | 1,010 |
Despite being the most common tribunal claim, only 3% of unfair dismissal cases that reach a hearing are successful. A quarter are withdrawn, while just under a third (30%) settle before reaching a hearing.
The most successful claim type at tribunal is failing to provide written reasons for dismissal, with one in five (20%) cases succeeding at hearing. Interestingly, an equal 20% were unsuccessful.
Equal pay claims are the most likely to be withdrawn, with a third (33%) ending before a hearing or settlement. Disability and sexual orientation discrimination claims follow closely, with 31% withdrawn.
Pregnancy-related claims had the highest settlement rate at 37%, followed by disability discrimination at 32% and sex discrimination at 31%.
As part of their research, CharlierHR also revealed the average award amount for cases where the financial award was recorded:
- Disability discrimination claims had an average award of £44,483, while sex discrimination awards averaged £53,403.
- Age discrimination had the highest average award at £102,891, with the maximum award reaching £261,949.
- Unfair dismissal claims resulted in an average award of £13,749, with the maximum reaching £179,124.
Ben Gateley, CEO and co-founder of CharlieHR, comments: “With the employment tribunal claim window doubling, businesses will have to be prepared for potential disputes to remain live for much longer. The latest data shows just how costly some claims can become, making it more important than ever for employers to have clear processes and accurate records in place.
“The businesses that come through these changes strongest won’t just be the ones that stay compliant. They’ll be the ones that use this as an opportunity to build better HR habits, give managers more confidence, and address problems before they escalate into formal disputes.”