Research from UK Top 50 law firm Birketts found 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.
Findings from a survey it conducted of 500 HR directors and managers with 100 responses from the hospitality and leisure sector, showed that, on average, 4.95 working weeks were spent on employment tribunal claims by HR teams of manufacturing businesses in the previous two years – almost 10% of their working time.
The survey also revealed that two-thirds of employment tribunal claims brought against manufacturing businesses were resolved before reaching a final hearing. The most common reasons for settling were the financial costs and the significant management time required to defend claims.
The law firm highlighted the “significant operational burden” such claims can place on internal teams.
It suggested food and drink manufacturers mitigate this impact by taking proactive steps to manage grievances effectively and promptly, thereby reducing the likelihood of escalation and the associated drain on time and resources.
Food and beverage employers were also advised to maintain thorough documentation of all employment-related decisions and actions, which provides vital evidence if a dispute arises.
Food and beverage businesses were also recommended to invest in providing targeted training for line managers on handling grievances, disciplinaries, and workplace behaviour.
Catherine Johnson, partner in the employment team at Birketts LLP, said: “The food and beverage manufacturing sector, like many others, is facing significant pressure from a surge in employment tribunal claims. This increase is being driven by economic challenges, increasingly complex grievance issues, and evolving legal obligations.
“From our results, it appears that a relatively high proportion of grievances brought against manufacturing businesses ultimately resulted in a tribunal claim. This suggests that managers in this sector might not be dealing with grievances adequately or effectively.”
She added: “We recommend that businesses in the food and beverage manufacturing sector review claims at an early stage and consider whether settlement is the best course of action before the matter progresses to a tribunal hearing. Resolving disputes early can help save time, reduce costs, and minimise disruption to operations.”
Birketts also highlighted a “noticeable change” in how grievances are being presented.
It said with the use of AI tools, employees can now submit longer and more complex complaints, which also introduces the risk of inaccuracies and legal misinterpretations.
“As such, it is vital for food and beverage manufacturing employers to implement clear AI usage policies and maintain robust internal processes to ensure compliance,” Johnson added.
“In summary, employers in the food and beverage manufacturing sector should act promptly to strengthen their grievance procedures, provide effective training for line managers, and prepare for upcoming changes in employment law, including new rights introduced by the Employment Rights Bill.”
