How Likely Is My Employment Claim to Settle? The Data
How Likely Is My Employment Claim to Settle? The Data
This article applies to England, Wales and Scotland.
Last updated: March 2026
In brief: Most employment claims never reach a tribunal hearing. Around 79% are resolved beforehand: through ACAS early conciliation, withdrawal, or negotiated settlement. Of claims that enter early conciliation, approximately 68% never become tribunal claims at all. This article sets out what the official data shows about settlement rates, and what it means for your claim.
If you are thinking about bringing an employment claim, the most common question after "do I have a case?" is: "will it settle, or will I have to go to a hearing?"
The data gives a clear answer. The vast majority of employment disputes do not end in a tribunal room. They are resolved, or abandoned, long before that point. Understanding where and why resolution tends to happen can help you think more realistically about what lies ahead.
The Full Picture: Where Claims Actually End
Official ACAS data for April to June 2025 shows that 79% of all employment tribunal cases did not progress to a hearing. That figure has been broadly consistent across the preceding eight quarters, ranging between 76% and 79%.
Of those cases that did not proceed to a hearing, ACAS settled around 74% through early conciliation, with the remainder being withdrawn by the claimant.
That means, across the full population of ET cases filed in that quarter:
- Roughly 57–58% settle via ACAS conciliation (either pre- or post-ET1)
- Around 20–22% are withdrawn without any settlement
- Around 21% proceed to a hearing of some kind
These are not Yerty's figures. They come directly from ACAS's published quarterly statistical bulletins, based on outcomes data collected by ACAS and the Ministry of Justice.
Early Conciliation: The First Filter
Before a claimant can file an ET1, the law requires them to notify ACAS and offer early conciliation. This is where most resolution happens, and many claims never get further.
In the year to December 2024, approximately 68–69% of all early conciliation notifications did not lead to the submission of an ET1. In other words, more than two-thirds of potential claims are either settled or dropped before a formal tribunal claim is ever made.
Of those that do reach the early conciliation stage, ACAS data for 2023/24 shows that around 13% of all EC notifications result in a COT3 settlement: a binding agreement brokered directly by an ACAS conciliator. In that year, that amounted to over 20,000 cases resolved without a tribunal claim being filed.
The reasons people do not proceed past early conciliation vary. Some reach a negotiated settlement. Others decide the time, cost, or stress is not worth it. Some are advised their claim has limited prospects.
After the ET1: Conciliation Continues
Filing an ET1 does not end the opportunity to settle. Once a claim is submitted, ACAS has a statutory duty to offer conciliation to both parties throughout the tribunal process, right up to the point of a hearing.
The data consistently shows that a significant proportion of claims that survive the early conciliation stage are still resolved before reaching a final hearing, whether through ongoing ACAS conciliation, direct negotiation between the parties, or withdrawal.
For context, across all disposals in Q4 2024/25, the claim-type settlement rates through ACAS were approximately:
| Claim type | ACAS conciliated settlement rate |
|---|---|
| Unfair dismissal | ~33% |
| Disability discrimination | ~35% |
| Race discrimination | ~27–31% |
| Breach of contract | ~27–29% |
| Unauthorised deductions (wages) | ~25% |
| Whistleblowing / public interest disclosure | ~30% |
These figures represent the percentage of disposed cases in each category that were resolved by an ACAS-brokered settlement, rather than proceeding to a hearing outcome or being struck out. They are drawn from the Ministry of Justice's Employment Tribunal statistics for 2024/25.
What Increases the Chance of Settlement?
The data does not tell us exactly why some claims settle and others do not. But the Survey of Employment Tribunal Applications offers some useful context. In that survey, claimants reported settling primarily because it was less stressful than proceeding (40%) and because they thought they had a reasonable offer. Employers most commonly cited financial reasons and saving time as motivations for settling.
A few patterns are worth noting:
Claim strength matters, but not in the way people expect. Settlement is not a sign of weakness on either side; it often reflects that both parties are assessing risk realistically. A strong claim may generate a better settlement offer, but it may also result in an employer choosing to defend.
Discrimination and whistleblowing claims tend to settle slightly more often than breach of contract claims, likely because the potential awards in those claim types are harder to predict.
Most settlement offers involve money. The 2018 ACAS survey of tribunal applications found that around 90% of settled cases involved a financial payment. Median settlement amounts in that survey were around £5,000, though this figure is now dated and varied significantly by claim type and circumstances. See our guide on employment tribunal outcomes and success rates for more context on what outcomes look like at hearing.
The Costs of Not Settling
There is no cost to the claimant for bringing a tribunal claim. Employment tribunal fees were abolished in 2017. However, the process carries real costs that are harder to quantify: time, stress, the impact on other aspects of life, and, if the case drags on, ongoing uncertainty. These factors explain why many claimants choose to settle even when they believe they have a strong case.
Employers, on the other hand, face legal costs and management time regardless of outcome. Research by ACAS has estimated that the cost of individual workplace conflict to an organisation averages around £1,000 per worker, and that tribunal defence costs considerably more. This is one reason why many employers are motivated to settle.
Neither side is required to settle. But understanding that most claims do settle, and at what stage, helps set realistic expectations before the process begins.
Time Limits Still Apply
Settlement or not, the clock is running from the moment the incident occurs. For most employment claims, the deadline to notify ACAS is three months less one day from the date of dismissal, the last act of discrimination, or the relevant incident. This applies regardless of whether you intend to settle. Miss the deadline and the claim is likely to be barred entirely.
The ACAS early conciliation clock-stop does give you a small extension while conciliation is running. For a full breakdown of all the relevant deadlines, see our guide on employment tribunal time limits.
The Employment Rights Act 2025 (Royal Assent: 18 December 2025) includes provision to extend tribunal time limits from three months to six months for most claim types, but this is expected no earlier than October 2026.
Frequently Asked Questions
What percentage of employment claims settle? Official ACAS data for 2025 shows around 79% of employment tribunal cases do not reach a hearing, with ACAS settling approximately 74% of those. Across all EC notifications, around 68% never become tribunal claims. Overall, roughly 57–58% of filed ET cases appear to settle through ACAS.
Does settling mean I had a weak claim? Not necessarily. Settlement reflects a mutual assessment of risk, cost, and time rather than the merits of a claim alone. Many strong claims settle because both sides prefer a known outcome over the uncertainty and expense of a hearing.
At what stage do most claims settle? Most resolution happens at the early conciliation stage , before an ET1 is ever filed. Of claims that do become formal tribunal cases, a further significant proportion settle during ongoing ACAS conciliation or direct negotiation before the hearing date.
Can I negotiate directly with my employer without going through ACAS? Yes. Direct negotiation , often conducted on a without prejudice basis, can happen at any stage. ACAS conciliation and direct negotiation are not mutually exclusive. Many cases involve both.
What happens if conciliation fails? If early conciliation ends without a settlement, ACAS issues an early conciliation certificate. You then have a short period to submit an ET1 if you wish to proceed. See our ACAS early conciliation guide for how the process works in practice.
Is settlement confidential? COT3 settlements brokered through ACAS are generally confidential between the parties. The terms are not published. Settlement agreements signed outside ACAS typically contain confidentiality clauses, and the fact that a settlement occurred is not itself made public.
Do employers have to settle? No. Settlement is always voluntary. An employer is entitled to defend a claim through to hearing. In practice, the decision to settle is a commercial one, weighing legal costs, management time, reputational risk, and the prospects of success at hearing.
What is the difference between a COT3 and a settlement agreement? Both are legally binding ways of settling an employment dispute. A COT3 is brokered through ACAS conciliation. A settlement agreement is a direct contract between employer and employee, which must be signed by an independent legal adviser. For more on the differences, see our guide on types of employment settlement once available.
Sources
- ACAS Early Conciliation and Employment Tribunal Data, April to June 2025 (latest published quarter): acas.org.uk
- Ministry of Justice Employment Tribunal Statistics, 2024/25 quarterly data: gov.uk/government/collections/tribunals-statistics
- ACAS Economic Impact Report 2023/24 (COT3 volumes and EC outcomes)
- Survey of Employment Tribunal Applications 2018 (settlement motivations and financial outcomes)
Important notice: This article is published by Yerty for general informational purposes only and does not constitute legal advice. It should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. Yerty is not a law firm and does not provide legal advice.
Employment law is highly fact-sensitive. The data in this article reflects broad statistical trends and cannot predict the outcome of any individual claim. The applicability of any legal principle, time limit, or remedy will depend on the particular facts of your situation, your contract terms, and the conduct of the parties involved.
If you are considering bringing an employment claim or have received a settlement offer, we strongly encourage you to seek independent legal advice before taking any action, particularly before accepting or rejecting any offer. Use Yerty's free assessment as a first step to understanding your situation, then speak to a qualified employment solicitor before making any significant decisions.