Research perspectives

End of furlough “will lead to spike in tribunals”

A study by insurance brokerage Gallagher has warned of a surge in Tribunal claims when the government’s furlough scheme ends in September this year as employers make staffing cuts they have been putting off.

This will exacerbate trend already underway, as its Business Litigation Index found that more than half (56%) of businesses have faced accusations or claims of unlawful behaviour, with employee disputes making up the bulk of these cases (44%). Its research found that claims of unfair dismissal and discrimination both rose by 17% over a five-year period, whilst workplace harassment claims increased by 13%. Complaints of injury, stress and illness at work had also increased since 2016, and are expected to remain at the same level or increase in 2021.

Gallaher point out that the situation has created “a perfect storm” with 64% of organisations expecting business litigation to either remain at the same volume or increase in the current year.