Employment Tribunal Awards 2022/23: A Year of Transition and Shifting Trends

After two years of disruption and transition in the employment tribunal system, the statistics for April 2022 to March 2023 offer a fascinating look into the landscape of workplace disputes and tribunal awards. It’s essential to recognise the impact of data transitions in the Employment Tribunal’s case management system. Transitioning to the new Employment Case Management (ECM) system from March to May 2021 affected data consistency and availability. As a result, data for Q1 2021/22 is not available, and caution is advised when making statistical comparisons before and after migration.

This article delves into key findings, trends, and significant data from this period, shedding light on the state of employment-related legal proceedings.

Fall in Number of Claims  

One of the headline statistics reveals a surprising trend. The total number of claims made during the 22/23 reporting period has decreased to 85,352. This figure is more aligned with the years prior to the abolition of employment tribunal fees in June 2017. In the years following fee abolition, claim numbers surged well beyond 100,000 annually. The drop in claims may indicate a return to the pre-2017 norm, reflecting complex factors like COVID-19 pandemic’s effects.

Trends in Award Quantification

The quantification of employment tribunal awards is highly dependent on the specific circumstances of each claim. However, certain general trends are worth noting in the 22/23 reporting period. Median awards across various heads of claims have seen a decrease compared to the previous year, except for disability discrimination cases.

The data reveals that in 2022/23, Disability Discrimination claims received the largest average award, standing at £45,000. The highest maximum award, a substantial £1,770,000, was granted in a Disability Discrimination case. These trends offer insights into the dynamics of tribunal awards with other notable awards including the following: –

• a substantial award of £995,128 was made in a sex discrimination claim;
• £452,474 was granted in a race discrimination case; and
• age, sexual orientation, and religion and belief discrimination claims saw awards ranging from £82,000 to £93,000.

Unfair dismissal cases usually face statutory caps, but one exceptional case received an award of £184,200 in the 22/23 reporting period, not subject to the cap. The median award for unfair dismissal claims, however, stood at just £6,201, with an average of £11,914.

It’s important to remember that most employment disputes are resolved through settlements and do not appear in these statistics. Many of these settlements could far exceed the average and median figures, potentially even reaching £1,000,000 agreements.

Rare Costs Awards

Costs awards in employment tribunals remain relatively rare. In the 22/23 reporting period, there were 195 cost awards, with 150 favouring respondents and 45 favouring claimants. The maximum costs award was £174,141, while the median costs award was significantly lower at £3,700.

Employment Tribunal Single Cases

In the first quarter of 2023, the Employment Tribunal received 7,900 single claim receipts and disposed of 7,100 single claim cases. Notably, there were 35,000 single claim open cases at the end of June. This suggests a growing caseload and the need for efficient case management.

Employment Tribunal Multiple Cases

During the same quarter, 16,000 multiple claim receipts were registered, with 6,700 disposals. The substantial open cases figure of 436,000 at the end of June underscores the complexity and volume of multiple claims. The dynamics of multiple claims can be influenced by a high number of cases against a single employer.

Representation and Costs

In 2022/23, 60% of claimants were represented by lawyers, a slight decrease from the previous year. Conversely, 31% of claimants had no representation recorded, reflecting a similar decline. This data suggests a relatively stable legal representation over the past few years.

Employment Appeal Tribunals (EAT)

The Employment Appeal Tribunal received 1,400 appeals in 2022/23, marking a 10% increase from the previous year. However, it disposed of 880 appeals, showing an 8% decrease in disposals compared to 2021/22.

Of the appeals handled at preliminary hearings, 43% were dismissed, with a higher dismissal rate for employer-initiated appeals. Additionally, when appeals reached the EAT final hearing, 40% were dismissed, again with a higher proportion related to employer appeals.

As the statistics for the next year become available, they will shed more light on whether the lower number of claims during the 22/23 reporting period is a lasting trend or a transient effect of the pandemic.

If you have any queries about Employment Law, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk