Acas Early Conciliation: 150,000 notifications and rising

The latest Acas Annual Report highlights a striking statistic: more than 150,000 Early Conciliation (EC) notifications were received by its individual dispute resolution service during 2025/26, representing a 27% increase on the previous year. Acas described this as an “exceptionally demanding year” and, at first glance, the figure may appear alarming – particularly when set against a backdrop of increasing employment tribunal claims.

However, it is important to remember that an EC notification is not the same as an employment tribunal claim. EC is a mandatory pre-claim step for most tribunal claims, designed to encourage parties to resolve disputes before proceedings are issued. In November 2025, the Acas early conciliation period was extended from six to 12 weeks, in an attempt to ease the pressure on the service and to increase the number of claims being settled.

Acas reports that the vast majority of cases handled through its individual dispute resolution service in 2025/26 were resolved, helping parties avoid the cost, stress and management time associated with litigation. Acas also reported that only around 20% of EC cases in the July to September 2025 period were closed without engagement from the parties, suggesting that most employers and employees are still using the process.

What is driving the increase?

The increase in notifications is likely to reflect a combination of factors, including ongoing labour market pressures resulting in high numbers of redundancies and lower volumes of recruitment, making it more likely that employees will choose to pursue a claim. Acas itself has noted that it is dealing with an increasing number of sensitive and complex disputes, including discrimination complaints and disputes arising from organisational change.

The substantial reforms introduced by the Employment Rights Act 2025, in particular the right to claim unfair dismissal after only six months of service and the removal of the compensation cap from 1 January 2027, may already be influencing some employers’ decisions to terminate employment early.

Employers are also operating in an environment where information about employment rights is more accessible than ever. The increasing availability of AI tools means employees can more easily generate correspondence, draft grievances, and formulate potential claims at little or no cost. It is becoming increasingly common to see detailed submissions and communications prepared, at least in part, using AI tools, including during the Acas EC process. Whilst AI may help individuals articulate concerns and engage with the process, employers should be aware that the apparent sophistication of a submission does not necessarily reflect the underlying legal merits of a claim.

The Birketts view

For employers, the latest Acas figures are a useful reminder that workplace disputes are increasingly likely to enter the EC process. As a result, employers should ensure that the possibility of EC is factored into their wider employee relations and litigation strategy, both in terms of how they respond to the Acas notification itself and how they prepare for the possibility that the matter may ultimately proceed to employment tribunal proceedings. Having clear internal processes for responding to Acas notifications promptly and effectively is crucial to managing risk and maintaining consistency in approach.

Employers should also carry out an early and realistic assessment of the legal and commercial risks associated with the dispute. A pragmatic evaluation of the strengths and weaknesses of the case, the potential costs of defending a claim, management time, reputational considerations and any wider employee relations issues can often assist in identifying opportunities for resolution before costs escalate further.

That said, it is important to remember that an EC notification does not automatically mean that a tribunal claim will follow. Many disputes are resolved during the conciliation process, while others are not pursued further.

Employers should also not assume that the absence of an Acas approach means there is no risk of a claim. Employees may notify Acas in order to obtain an EC certificate, but choose not to engage in conciliation or request that Acas does not contact the employer. In those circumstances, an employer may receive little or no warning before an employment tribunal claim is presented.