UK employment tribunals: key decisions affecting workers and employers in London

London's employment tribunal system has delivered a string of decisions this year that are forcing businesses across the capital to rethink how they handle staff disputes. The Employment Appeal Tribunal in July upheld a ruling that employers cannot automatically dismiss workers for taking sick leave without proper investigation, a verdict that applies directly to the thousands of companies operating from the City to Southwark.

The decision matters now because the UK labour market remains fractious. Acas, the workplace advisory service, received 113,000 inquiries about employment rights in the 12 months to March 2026—a jump of 12 percent on the previous year. Many of these queries originate from London workers and their employers grappling with shifting expectations about rights and responsibilities following a period of rapid workforce changes.

What London's tribunals have decided

The Central London Employment Tribunal, which sits on Strand near the Courts of Justice, has become a focal point for disputes over sick pay and disability accommodations. In May, a panel ruled that a logistics firm operating from a warehouse in Enfield could not lawfully require workers to obtain a GP's note for absences of fewer than two days, contradicting industry practice at firms like those clustered around the A406 trading estates. The employer had sought to tighten controls after staff turnover jumped to 34 percent in 2025.

Meanwhile, the Croydon Employment Tribunal—which handles cases from south London boroughs including Lambeth, Lewisham and Southwark—issued guidance in June on redundancy consultation periods. The panel found that a manufacturing company based in Thornton Heath had failed to give adequate warning before laying off 47 workers, ruling that the statutory 30-day consultation window must be genuine and documented, not a formality buried in an email.

A separate decision at the Islington tribunal upheld claims of age discrimination against a financial services firm headquartered in the City, finding that the company's recruitment process systematically favoured candidates under 35. The tribunal awarded the claimant £28,500 in compensation and required the firm to revise its hiring practices across all London offices.

The numbers and what they mean

Employment tribunal claims filed in England and Wales rose to 47,321 in the year ending December 2025, with London accounting for roughly 18 percent of the national caseload. Unfair dismissal remains the largest category, followed by claims over wages and sick pay. Resolution times at London tribunals currently average 18 months from filing to decision, a slowdown that leaves businesses in a state of uncertainty.

For employers, the cost of losing a tribunal case extends beyond compensation. Legal fees, management time, and reputational damage accumulate quickly. Firms in Canary Wharf and the wider financial district report spending between £15,000 and £60,000 per contested case, depending on complexity. Workers, meanwhile, often face more acute pressures—many cannot afford to wait 18 months for a decision while continuing in roles where they claim to have suffered unfair treatment.

The tribunals have also tightened standards around flexible working requests. Employers can no longer refuse such requests without detailed written reasons. A decision at the South London tribunal found that a retail chain's blanket rejection of a mother's request to shift from full-time to part-time work breached the Flexible Working Act 2023, obliging the firm to reconsider.

Employers and workers should expect these standards to harden further. The Advisory, Conciliation and Arbitration Service is rolling out enhanced training for workplace representatives across London boroughs, signalling that the regulator believes more disputes will reach tribunal level if early resolution is not achieved. Firms operating from Tower Hamlets to Kingston should review sick leave policies, redundancy procedures and recruitment practices now, before a ruling forces the issue. Workers facing workplace disputes have stronger protections than at any point in the last decade—provided they can navigate the tribunal system's lengthening queues.