Pressure points in the UK tribunal system: Backlogs, reform, and the growing role of ACAS

The tribunal system was designed to promote accessible justice. Proceedings are less formal than those in the civil courts; parties frequently represent themselves, hearings may be conducted remotely, and there is no fee to issue a claim. However, sustained increases in claim volumes, the expansion of employment rights, and constrained judicial and administrative resources have generated a significant and persistent backlog. It is now common for claims to remain in the system for many months, and in some regions for final hearings to be listed as far ahead as 2028. In addition, reduced administrative capacity has limited proactive case management, resulting in delays in dealing with correspondence, interlocutory applications, and listing matters.

These delays have material consequences for employers. The evidential integrity of cases may be compromised by fading witness recollection and the departure of key personnel. Prolonged proceedings also increase legal expenditure and divert management time. Short-notice postponements – often attributed to resource constraints – exacerbate these issues, as preparation costs are incurred without the certainty of a substantive hearing. As a result, businesses are increasingly undertaking early evidence preservation and reassessing litigation risk, with settlement becoming a comparatively more attractive option.

Tribunal statistics published in December 2025 indicate that receipts continue to rise while disposals have decreased, leading to a net increase in the outstanding caseload. Further legislative reform under the Employment Rights Act 2025 is expected to intensify this pressure. Upcoming changes include extending the limitation period for most claims from three to six months (expected October 2026), and reducing the qualifying period for unfair dismissal from two years to six months (expected January 2027). Both measures are likely to expand eligibility and increase the volume of claims presented.

In response to mounting systemic strain, the government has extended the period of mandatory Early Conciliation conducted by the Advisory, Conciliation and Arbitration Service (ACAS) from 6 weeks to 12 weeks. This amendment, effective 01 December 2025, applies to notifications submitted on or after that date.

Early Conciliation is a statutory pre-condition to issuing most Employment Tribunal claims. It is a free and confidential process designed to facilitate resolution without recourse to litigation. Upon notification, the limitation period for bringing a claim is paused, with statutory provisions ensuring appropriate extension to reflect the conciliation period. The ACAS is a UK-based independent public body that provides free, impartial employment relations advice, dispute resolution, and best practice guidance to employers and employees. ACAS conciliators engage with the employee and invite the employer to explore settlement. Where agreement is reached, terms are recorded in a legally binding COT3 (conciliation) agreement. If conciliation does not result in settlement, ACAS issues an Early Conciliation certificate, enabling the claimant to proceed to formal litigation.

The extension to 12 weeks is intended to create greater scope for meaningful dialogue, reduce the number of claims issued, and alleviate pressure on the tribunal system. The government has indicated that the reform will be reviewed in October 2026 to assess its effectiveness against these objectives.

The practical impact of the extended period is nuanced. While it provides additional time for negotiation where both parties are willing to engage, participation remains voluntary in substance. Either party may decline to engage or withdraw from discussions. Employers may, in some cases, receive limited or no engagement during the conciliation window. ACAS data suggests that approximately 20% of notifications close without substantive participation. Nevertheless, statistics also indicate that around 68% of Early Conciliation notifications do not progress to a tribunal claim, demonstrating that the process performs a significant gatekeeping function.

For employers, longer conciliation periods may also extend the period of commercial uncertainty following organisational change or contentious employee relations issues. This may affect workforce planning, financial provisioning, and strategic decision-making.

The government has committed to increasing tribunal resources to address the growing caseload. Whether the combined effect of extended Early Conciliation and additional judicial capacity will materially reduce the backlog remains uncertain. The effectiveness of these measures will depend not only on increased resource allocation, but also on sustained engagement with alternative dispute resolution and broader systemic reform.

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Hollie Ball advises employers in the public, private and third sector from start-up businesses through to charities and multinational corporations. A large portion of Hollie's work is focused around the third and manufacturing sectors.