Written in November 2024. Checked for changes in the law in November 2026. This is general information, not legal advice.
Employment tribunals arise when disputes between employers and employees cannot be resolved through internal processes or early conciliation. They provide a formal avenue for addressing breaches of employment law, ensuring both parties have the opportunity to present their case. Below, we explore common scenarios where tribunals occur, with real-world examples to illustrate their significance.
1. Unfair Dismissal
One of the most frequent reasons for employment tribunals is unfair dismissal. This occurs when an employee believes their termination was not justified or handled according to legal procedures.
Example: An employee with three years of service is dismissed without prior warnings or a performance improvement plan. They file a claim alleging that their dismissal was procedurally unfair and lacked a valid reason. The tribunal finds the dismissal unfair and awards compensation for lost wages.
2. Discrimination
Discrimination claims are filed when an employee believes they were treated unfairly due to protected characteristics under the Equality Act 2010, such as age, gender, race, or disability.
Example: A female employee is consistently overlooked for promotions in favor of less qualified male colleagues. She files a tribunal claim for gender discrimination. The tribunal rules in her favor, ordering the employer to compensate her for lost career opportunities and emotional distress.
3. Wage Disputes
Disputes over unpaid wages, holiday pay, or overtime can also lead to tribunals. These claims ensure employees receive the compensation they are legally entitled to.
Example: An employee claims their employer failed to pay them for overtime hours worked over several months. The tribunal examines payroll records and awards the employee back pay and interest.
4. Redundancy Issues
Redundancy-related claims arise when employees believe they were unfairly selected for redundancy or did not receive the correct redundancy pay.
Example: A company restructures and selects employees for redundancy based on unclear criteria. An affected employee files a claim, arguing the process was biased. The tribunal orders the employer to pay redundancy compensation and a penalty for failing to follow fair consultation procedures.
5. Breach of Contract
Breach of contract claims occur when an employer or employee fails to honor the terms agreed upon in the employment contract.
Example: An executive is promised a performance bonus in their contract but does not receive it despite meeting targets. They file a claim for breach of contract, and the tribunal orders the employer to pay the outstanding bonus.
6. Whistleblowing
Employees who report wrongdoing within their organization, such as health and safety violations or financial misconduct, are protected under whistleblowing laws. If they face retaliation or dismissal, they may file a tribunal claim.
Example: A finance officer reports fraudulent activity within their company and is subsequently demoted. They file a tribunal claim, which rules in their favor, awarding compensation for lost earnings and emotional distress.
Conclusion
Employment tribunals occur when workplace disputes escalate beyond internal resolution, providing a legal mechanism to enforce employment rights. Understanding the common reasons for tribunals, from unfair dismissal to whistleblowing, helps employers and employees recognize potential issues early and take appropriate action. Proactively addressing disputes through clear policies and early intervention can often prevent the need for formal tribunal proceedings.