Employment Rights Bill set to reshape employer obligations
Research from UK Top 50 law firm Birketts reveals that manufacturing businesses across England and Wales are grappling with a rising tide of employment tribunal claims, driven by economic pressures, complex grievance issues, and evolving legal duties – set to become even more challenging under the Employment Rights Bill.
The report, The Birketts View: Employment Tribunals in the Manufacturing Sector Impact Report 2025, surveyed 500 HR professionals, including 100 from the manufacturing sector. It found that manufacturing businesses received an average of 39.44 tribunal claims over the previous two years – closely aligned with the cross-sector average, but with distinct patterns in claim types and outcomes.
Claim types and legal risks
The most common claims brought against manufacturing employers were constructive unfair dismissal, redundancy dismissal, and TUPE-related disputes. Harassment claims were also reported at higher levels than in other sectors, raising concerns about compliance with recent legal changes.
Birketts warns that the Employment Rights Bill – which introduces ‘day one’ rights to claim unfair dismissal and expands protections against harassment – could significantly increase the volume and complexity of claims in the manufacturing sector.
Grievances and disciplinaries: a critical fault line
While manufacturing businesses reported slightly fewer grievances overall (34.5 on average over 24 months), a higher proportion (60.39%) of tribunal claims were preceded by a grievance – suggesting that internal processes may be failing to resolve issues effectively. Stress (33%), harassment (31%), and manager relationships (30%) were the most common grievance types.
Disciplinary cases averaged 32.17 over the two-year period, with discrimination (26.3%) being the most common issue leading to dismissal. Alcohol and drug-related disciplinaries were also notably higher than in other sectors.
Settlements and HR impact
Two-thirds of claims in the manufacturing sector were settled before reaching a final hearing, with Acas Early Conciliation used in 30.3% of cases. However, only 15.2% of claims were withdrawn by the claimant – significantly lower than the cross-sector average – suggesting missed opportunities for early resolution.
Cost and management time were the top reasons for settling claims, each cited by 37.4% of respondents. HR teams spent an average of 4.95 working weeks dealing with tribunal claims – almost 5% of their time over two years.
Commenting on the findings, Catherine Johnson, Partner in Birketts’ Employment Team, said: “The manufacturing sector is under immense pressure – from rising operational costs to evolving legal duties. The introduction of ‘day one’ rights and expanded harassment protections will likely lead to more claims, particularly in areas like redundancy and workplace conduct.”
“Employers must act now to strengthen grievance procedures, train line managers effectively, and prepare for the new legal landscape. Tribunal claims are not just a legal risk – they’re a drain on time, morale, and resources.”
She added: “We’re seeing a shift in how grievances are presented, with AI tools enabling employees to draft longer, more complex complaints. This can introduce inaccuracies and legal misunderstandings, making it essential for employers to adopt clear AI policies and ensure robust internal processes.”
Recommendations for manufacturing employers
Birketts advises manufacturing businesses to:
- Implement clear workplace policies and maintain open communication.
- Provide training for managers on handling grievances, harassment, and disciplinary issues.
- Consider early settlement strategies to reduce costs and disruption.
- Prepare for the Employment Rights Bill, including the duty to prevent harassment by third parties.
- Review contractual terms ahead of the October 2026 restrictions on ‘fire and rehire’ practices.
The full report can be found in the The Birketts View: Employment Tribunals in the Manufacturing Sector Impact Report 2025.
