Beyond the Backlog: Building a dispute resolution system that works

Read the full report here: Beyond the Backlog: Building a dispute resolution system that works 704 KB

Executive Summary

Every year, Citizens Advice supports 100,000 people with employment problems. These range from unpaid wages and sick pay to unfair dismissal, discrimination and harassment. What we see is likely the tip of the iceberg - as many as 1 in 4 workers reported having a problem at work in the last year.

The good news is that change is on the way. The Employment Rights Act 2025 (ERA) introduced significant new rights and protections for workers, while the “Get Britain Working” plan aims to move more people into stable, high-quality employment. But the success of any new rights and protections depends on workers being able to understand, exercise and enforce them. Currently, this often relies on workers pursuing justice themselves, through the Employment Tribunal (ET) system.

It’s well known that the ET system is under pressure. The number of single claims waiting to be heard by the tribunal has now reached 70,000, the highest level on record. This is placing huge demands on the courts, increasing costs and delays for both workers and employers, and leaving too many without access to justice. Some workers will wait years for their cases to be heard.

There has been lots of speculation about what is driving this backlog, including whether the increasing use of Artificial Intelligence (AI) by claimants is to blame. Our advisers on the ground tell us that while AI is an emerging part of the picture, there are longer-standing problems that explain the current state of the system.

The problem is not simply the volume of new claims. The cases already stuck in the system are increasingly complex, with a high proportion involving discrimination, which may explain why they are being resolved more slowly and creating a bottleneck. Last year, two cases entered the system for every one that was discharged. 

At the same time, when we look further upstream, it’s clear that there are barriers which prevent workplace issues being resolved before they reach an ET hearing. Without access to support or advice, workplace issues can escalate into formal disputes quickly. Many workers struggle to navigate conciliation and the complex tribunal process without specialist support, and there are few incentives for unscrupulous employers to settle early. 

This creates a vicious cycle. Once disputes have escalated they can become more complex and the parties to the dispute can become more entrenched. This makes cases harder to process efficiently, further snarling up the system. This is bad for workers, who are put under huge financial, emotional and practical strain, and often lose out on justice altogether by withdrawing, or settling for less. It’s bad for employers who want to genuinely engage but face lengthy delays, racking up legal fees. And it’s bad for the system; if it can’t genuinely enforce the law, incentives to comply are weakened, driving down standards across the labour market. 

Specialist employment advice can help break this cycle. Advisers help workers understand their rights and options, resolve issues with employers and, where necessary, navigate Acas, settlement negotiations and the ET journey. This can keep some disputes out of the tribunal and help workers pursue legitimate claims.

But while advice can be transformational, a patchy funding landscape and limited access to legal aid means many people slip through the net. 

Insights from advisers show us how vital the support they offer can be - to workers, and to a properly functioning labour market. They also show us what a good dispute resolution system could look like: one where workers and employers face few barriers to fair, timely resolutions, while ensuring that the tribunal remains available for disputes that genuinely need it. 

To build a dispute resolution system that works, government should focus on four priorities:

1. Effective workplace resolution processes

Employers should have effective grievance and HR processes that give workers a safe and meaningful way to raise concerns and give employers the flexibility to resolve problems early.

2. Incentives on employers to engage early

The system should create stronger incentives for employers to engage constructively with disputes before they escalate to a hearing or become entrenched.

3. Robust mechanisms to enforce the payment of awards 

Workers who win compensation shouldn't have to navigate a complex enforcement system to accerss money they are owed. There must be meaningful consequences for deliberate non-payment and simpler routes to recovery.

4. Ongoing access to advice

Free, specialist employment advice should be available from the earliest stages of a dispute and throughout the resolution process, helping workers understand their rights, resolve problems early and navigate the system where a tribunal is necessary.

These reforms are vital to ensure the Employment Rights Act and “Get Britain Working” deliver on their promise of better, more secure work, and boosted living standards. A functioning dispute resolution system would give workers a clear route to exercise their rights, employers a framework for fair and timely resolution, and ensure effective enforcement that raises standards across the labour market.

Read the full report here: Beyond the Backlog: Building a dispute resolution system that works 704 KB