Unfair Dismissal Claims on the Rise: How Employers Can Reduce Tribunal Risk

Employment tribunal claims are on the rise with the employment tribunal receiving 42,000 single claims in 2024/25, which is an increase of 23% from the previous year. According to The Ministry of Justice, there were 45,000 open claims at the end of March 2025, which is a 33,000 increase from the previous year. Employment tribunals are a constant worry for employers, but how do you reduce the risk of unfair dismissal claims?

What is Unfair Dismissal?

There can be a lot of confusion regarding employment tribunals and who is eligible to claim unfair dismissal. In most cases, an employee must have at least two years’ continuous service to bring an unfair dismissal claim/ However, they can still claim for unfair dismissal and take an employer to an employment tribunal if it relates to an automatically unfair reason, including:

• Discrimination based on protected characteristics
  
  
• Breach of contract
  
  
• Dismissal for requesting or exercising a statutory right
  
  
• Whistleblowing
  
  
• Health and safety concerns

Can an employee with less than two years’ service take an employer to tribunal?

Yes — if the dismissal falls under an automatically unfair reason.

Fair Reasons for Dismissal

Employers may dismiss employees for legitimate reasons, provided a fair process is followed. Common fair reasons include:

• Poor performance
  
  
• Redundancy
  
  
• Absenteeism
  
  
• Gross misconduct
  

Even when a valid reason exists, failure to follow a fair and reasonable procedure can still result in an unfair dismissal claim.

How to Avoid Unfair Dismissal Claims

It is important for employers to take steps to reduce the potential risk of unfair dismissal claims. Employment tribunals will expect an employer to show how they reached this decision through relevant documentation. These are some ways to avoid an unfair dismissal claim:

Communicate with Employees

Open and honest communication with employees can help to resolve conflict. When employees feel that their employer is supporting them, they will be less likely to want to take them to an employment tribunal. It is important to treat employees fairly and without judgement.

Document Everything

Most employers will lose claims at an employment tribunal due to a lack of documentation. For instance, if you have dismissed someone for high absenteeism, but you have not conducted return to work and disciplinary meetings, you are likely to lose the case. Make sure you keep a record of every discussion you have with the employee, including any warnings or meetings you have conducted. Make sure you have documentation related to:

• Meetings and discussions
  
  
• Performance reviews
  
  
• Warnings and action plans
  
  
• Absence management procedures

Use Probationary Periods

Probationary periods are a good way to avoid expensive employment tribunals. You can use probationary periods in your contract to determine if the candidate is the right fit and if not, it is far easier to dismiss them while they are still in their probationary period.

Employment Tribunal Case Examples

• Tesco unfair dismissal case
  A customer sales assistant with 26 years’ service was dismissed after being incorrectly recorded as AWOL while on authorised holiday. The tribunal upheld her unfair dismissal claim, awarding nearly £5,000.
  
  
• Maternity discrimination case
  An office worker was awarded £50,000 after being excluded from a company-wide free day off and denied information about job opportunities while on maternity leave.

These cases highlight the importance of accurate records, fair treatment, and inclusive communication.

Employment tribunals can be costly, time-consuming, and damaging to reputation. Taking proactive steps to support employees and maintain accurate documentation is essential.

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