Manufacturing sector warned: Employment claims set to soar under new Rights Bill
Manufacturing businesses are grappling with a rising tide of Employment Tribunal claims, driven by economic pressures, which are set to become even more challenging under the Employment Rights Bill.
A new report from law firm Birketts, shared exclusively with City PM, reveals that manufacturing businesses faced an average of 39.44 tribunal claims over the past two years.
While this figure is close to the cross-sector average, the types of claims and their outcomes show distinct patterns in the manufacturing sector.
The most common claims brought against manufacturing employers were constructive unfair dismissal, redundancy dismissal, and transfer of undertakings (TUPE)-related disputes.
Harassment claims were also reported at higher levels than in other sectors, raising concerns about compliance with recent legal changes.
The upcoming Employment Rights Bill is set to introduce ‘day one’ rights to claim unfair dismissal and expand protections against harassment. As a result, Birketts warned that the manufacturing sector could face a significant increase in the volume and complexity of claims.
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.
The Marmite Bill
Just last week, top business groups warned the new business secretary, Peter Kyle, that changes needed to be made to the Bill immediately to prevent the UK’s jobs market crisis from worsening.
City PM provides a breakdown of all the developments in the Employment Rights Bill since its introduction.
The Bill is still currently at the House of Commons after being passed over by the House of Lords. Back in July, the Lords voted in favour of a Conservative-led amendment to the ‘day one’ rights provisions, reducing the qualifying period to six months instead of starting from day one.
The Bill failed to receive Royal Assent before both the Commons and the Lords went into recess for the party conference season. Both Houses must agree on the final text, and the Bill will move between them until consensus is achieved.
The recess continues until 13 October, so any Royal Assent of the Bill will be sometime from mid-October onwards.