Top Reasons Why UK Employers Lost Employment Tribunals in 2024 - And How to Stay Protected

By Rosie Campbell, Thrive. 3rd January 2025

Employment tribunal cases are on the rise, and the stakes for employers couldn’t be higher. According to government data, the number of tribunal claims increased by 21% in 2023, with unfair dismissal and discrimination being the most common claims [1]. Losing a tribunal doesn’t just mean financial penalties—it also damages your reputation and disrupts your workforce.

The good news? Most tribunal losses stem from preventable mistakes. This article explores the biggest reasons employers lose and how you can take action today to avoid costly errors.

1. Procedural Errors: The Leading Cause of Tribunal Losses

The Data:

Research by the Ministry of Justice shows that 42% of unfair dismissal claims succeed because employers fail to follow proper procedures, such as those outlined in the ACAS Code of Practice [2]. For example, skipping steps like holding a disciplinary meeting or offering a right to appeal often leads to rulings against employers.

Example:

A manufacturing company dismissed an employee for poor performance without holding a disciplinary meeting. The tribunal ruled the dismissal unfair, awarding the employee £20,000 in compensation. The judgment highlighted the employer’s failure to follow the ACAS Code.

Actionable Advice:

• Follow the ACAS Code: Treat it as the gold standard for disciplinary and grievance procedures.

• Use Checklists: Develop step-by-step guides for dismissals to ensure compliance.

• Train Managers: Provide training on procedural fairness to avoid errors in high-stress situations.

2. Inadequate Documentation: When Evidence Is Everything

The Data:

According to CIPD findings, 70% of tribunal losses stem from a lack of robust documentation to support the employer’s case [3]. Missing performance reviews, absent warning letters, and undocumented meetings make it nearly impossible to justify decisions.

Example:

A retail business dismissed a supervisor for repeated lateness but had no written warnings or attendance records. The tribunal ruled in the employee’s favour, stating the employer failed to demonstrate a fair reason for dismissal.

Actionable Advice:

• Document Performance Issues: Use HR software to track warnings, appraisals, and improvement plans.

• Send Follow-Up Emails: After verbal discussions, summarise key points in writing to create a paper trail.

• Be Consistent: Ensure documentation is maintained for all employees, not just select cases.

3. Insufficient Training: Ignorance Isn’t an Excuse

The Data:

In 2023, 36% of discrimination claims were upheld due to managers inadvertently breaching equality laws, often because they weren’t adequately trained [4]. Common mistakes include asking inappropriate interview questions or mishandling reasonable adjustments.

Example:

A manager asked a female candidate if she planned to have children during an interview. The candidate later filed a discrimination claim, and the tribunal awarded her £15,000 for injury to feelings.

Actionable Advice:

• Provide Ongoing Training: Cover key topics like equality, diversity, and unconscious bias.

• Simulate Scenarios: Use role-play exercises to help managers handle sensitive situations.

• Update Regularly: Ensure your training evolves with changes in employment law.

4. Inconsistent Application of Policies: Fairness Is Non-Negotiable

The Data:

Tribunals frequently rule against employers when policies are applied inconsistently. In 2022, 28% of successful claims involved perceived favouritism or unequal treatment [5].

Example:

Two employees were caught arriving late. One received a written warning, while the other, a higher performer, faced no action. The disciplined employee filed a discrimination claim and was awarded £12,000.

Actionable Advice:

• Standardise Your Policies: Clearly outline disciplinary procedures in your employee handbook.

• Conduct Audits: Review actions taken across departments to ensure consistency.

• Involve HR: Use impartial oversight to reduce bias in decision-making.

5. Failure to Address Grievances: Ignoring Problems Doesn’t Make Them Go Away

The Data:

ACAS reports that unresolved grievances are a key driver of constructive dismissal claims, 80% of which succeed at tribunal [6]. Employees often feel forced to resign when their concerns are dismissed.

Example:

An employee raised concerns about bullying but received no follow-up from management. Feeling unsupported, they resigned and won a constructive dismissal claim worth £25,000.

Actionable Advice:

• Act Promptly: Investigate all grievances thoroughly and without delay.

• Communicate Clearly: Keep the employee informed of progress and outcomes.

• Review Trends: Track grievances to identify recurring issues and address root causes.

6. Poor Witness Preparation: A Strong Case Can Crumble in Court

The Data:

Inconsistent or unconvincing testimony is a key factor in tribunal losses, particularly in complex cases. A study by the Employment Lawyers Association found that poorly prepared witnesses reduce an employer’s chances of success by 40% [7].

Example:

A manager contradicted their own written statement during a tribunal, leading the judge to question the company’s credibility. The employer lost the case and faced additional legal costs.

Actionable Advice:

• Pre-Trial Briefings: Clarify the facts of the case and the witness’s role.

• Practice Sessions: Hold mock hearings to build witness confidence.

• Seek Legal Support: Engage a solicitor to assist with preparation and strategy.

7. Non-Compliance with Legal Obligations: Avoidable Risks

The Data:

In 2023, 18% of tribunal claims arose from basic compliance failures, such as not providing written contracts or neglecting minimum wage laws [8].

Example:

A logistics company failed to issue contracts within the legal time frame. When a dispute arose over terms, the tribunal ruled against them, awarding the employee £8,000.

Actionable Advice:

• Audit Regularly: Check contracts, pay structures, and policies for compliance with current laws.

• Stay Informed: Subscribe to HR updates or work with a consultancy like Thrive.

• Fix Issues Quickly: Address compliance gaps as soon as they’re identified.

Why You Should Act Now

Employment tribunals aren’t just a risk—they’re a reality. With claims on the rise and employees more aware of their rights than ever, businesses must take proactive steps to protect themselves.

At Thrive., we’re here to help. Whether you need training, policy reviews, or on-call HR support, we have the expertise to keep your business compliant and your workplace thriving.

Get in Touch

Don’t wait for a tribunal to knock on your door. Contact us today to learn how we can safeguard your business and create a workplace where your people—and your profits—thrive.

Reference List

1. Ministry of Justice. (2023). Employment Tribunal Statistics.

2. ACAS. (2024). Code of Practice on Disciplinary and Grievance Procedures.

3. CIPD. (2023). The Value of Documentation in Employee Relations.

4. Equality and Human Rights Commission. (2023). Workplace Discrimination Trends.

5. Chartered Institute of Personnel and Development (CIPD). (2023). Consistency in Workplace Policies.

6. ACAS. (2023). Handling Employee Grievances Effectively.

7. Employment Lawyers Association. (2023). The Role of Witness Preparation in Tribunal Success.

8. Gov.uk. (2023). Employment Tribunal Case Study Reports.

Tags: #EmploymentTribunals #HRCompliance #FairWorkplace #AvoidTribunalClaims #ThriveHR