Hotels face growing pressure to handle legal challenges due to workforce changes and new employment laws. / Credit: fengdr2020 via Shutterstock

The hospitality sector has experienced a significant increase in employment tribunal claims over the past two years, according to Birketts LLP’s Employment Tribunals Impact Report 2025.

The report, based on a survey of 500 HR professionals, indicates that the average number of tribunal claims in the hospitality and leisure sector was 44.53, surpassing the overall national average of 39.80.

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This upward trend is attributed to various factors, including evolving workplace dynamics and heightened awareness of employee rights.

The report also highlights the complexity of cases, with many involving multiple allegations, necessitating more detailed legal scrutiny.

Implications for hotel employers

The rise in tribunal claims presents several challenges for hotel employers. The increased complexity of cases demands more time and resources for legal proceedings.

Employers are advised to review and strengthen their internal policies, ensuring compliance with employment laws and fostering a fair working environment.

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Additionally, the report notes that the introduction of the Employment Rights Bill, which includes provisions such as ‘day one’ unfair dismissal rights and a duty to prevent sexual harassment, is expected to further impact the number of claims.

Employers in the hospitality sector should prepare for these changes by updating their employment practices accordingly.

Several recent tribunal cases underscore the types of disputes prevalent in the hospitality sector.

For instance, a former part-time waiter at The Ivy restaurant chain initiated legal action over the distribution of tips and service charges, alleging unfair compensation practices.

Another case involved a former head chef at a gastropub who was awarded over £20,000 following claims of unfair dismissal and harassment, including threats of deportation based on race and sexual orientation.

These cases highlight the diverse nature of disputes in the hospitality industry, ranging from compensation issues to allegations of discrimination and harassment.

Strategies for mitigating risks

To mitigate the risks associated with employment tribunal claims, hotel employers are encouraged to implement several strategies:

  • Clear communication of policies: Ensure that workplace policies are well-communicated and accessible to all employees.
  • Regular training: Provide ongoing training for staff and management on employment rights and responsibilities.
  • Early dispute resolution: Encourage early resolution of conflicts through mediation or other alternative dispute resolution methods.
  • Documentation and record-keeping: Maintain accurate records of employee performance, disciplinary actions, and communications.

By proactively addressing potential issues and fostering a positive work environment, hotel employers can reduce the likelihood of disputes escalating to tribunal claims.

As the hospitality sector continues to navigate these challenges, staying informed about legal developments and best practices will be crucial for employers aiming to maintain compliance and protect their businesses.