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. 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 shows that around 79% of all employment tribunal cases do not progress to a hearing. That figure has been broadly consistent across recent quarters.

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cases that did not proceed to a hearing, ACAS settled around 74% through early conciliation, with the remainder being withdrawn by the claimant.

Across the full population of ET cases:

• 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• Around 20–22% are withdrawn without any settlement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 figures come from ACAS's published quarterly statistical bulletins and Ministry of Justice tribunal data.

Early Conciliation: The First Filter

Before a claimant can file an ET1, they must notify ACAS and offer early conciliation. This is where most resolution happens — and many claims never get further.

Approximately 68–69% of all early conciliation notifications do not lead to the submission of an ET1. More than two-thirds of potential claims are either settled or dropped before a formal tribunal claim is ever made.

Of those that do proceed, around 13% of all EC notifications result in a COT3 settlement — a binding agreement brokered directly by an ACAS conciliator, without a tribunal claim being filed.

After the ET1: Conciliation Continues

Filing an ET1 does not end the opportunity to settle. ACAS has a statutory duty to offer conciliation throughout the tribunal process, right up to the hearing. A significant proportion of claims that survive early conciliation are still resolved before a final hearing, through ongoing ACAS conciliation, direct negotiation, or withdrawal.

For context, per-claim-type ACAS settlement rates from the latest available quarterly data (Q3 2025/26 where published, Q2 2025/26 otherwise):

What Increases the Chance of Settlement?

The data does not tell us exactly why some claims settle and others do not. But research from ACAS and the Survey of Employment Tribunal Applications offers useful context.

Settlement reflects mutual risk assessment, not weakness. Claimants most often settle because it is less stressful than proceeding and because they received a reasonable offer. Employers cite financial reasons and saving management time.

Discrimination and whistleblowing claims tend to settle more often than financial claims, likely because the potential awards are harder to predict.

Most settlement offers involve money. The 2018 ACAS survey found around 90% of settled cases involved a financial payment. See our guide on employment tribunal outcomes and success rates for 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: time, stress, uncertainty, and the impact on other aspects of life. With the tribunal backlog now at 30,784 open cases and mean clearance times at 31 weeks overall (up from 19 weeks a year ago), these practical costs have increased significantly.

For claim types that typically go to complex hearings — discrimination and whistleblowing particularly — realistic timelines are now 34–42 weeks from filing. This is one reason why early settlement, where achievable, is increasingly worth considering.

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. Missing the deadline will likely bar the claim entirely.

The ACAS early conciliation clock-stop gives a small extension while conciliation is running. See our guide on employment tribunal time limits.

The Employment Rights Act 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?

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 settle through ACAS.

Does settling mean I had a weak claim?

Not necessarily. Settlement reflects mutual risk assessment rather than the merits 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 early conciliation, before an ET1 is ever filed. Of claims that become formal 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 ACAS?

Yes. Direct negotiation on a without prejudice basis can happen at any stage. ACAS conciliation and direct negotiation are not mutually exclusive.

What happens if conciliation fails?

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.

Is settlement confidential?

COT3 settlements brokered through ACAS are generally confidential between the parties. Settlement agreements signed outside ACAS typically contain confidentiality clauses.

Do employers have to settle?

No. Settlement is always voluntary. Employers weigh legal costs, management time, reputational risk, and prospects of success at hearing when making the decision.

Sources

• ACAS Early Conciliation and Employment Tribunal Data, quarterly bulletins — ACAS: Early Conciliation Statistics
• Ministry of Justice Employment Tribunal Statistics, Q3 2025/26 — GOV.UK Tribunals Statistics
• Survey of Employment Tribunal Applications 2018

Important notice: This article is published by Yerty for general informational purposes only and does not constitute legal advice. Employment law is highly fact-sensitive. If you are considering bringing an employment claim or have received a settlement offer, seek independent legal advice before taking any action.

Related Guides

• Types of Employment Settlement: COT3, Settlement Agreement or Negotiated Deal?
• What Is a COT3 and What Do I Need to Know?
• Protected Conversation: What Your Employer Can't Use Against You
• Unfair Dismissal: Is It Worth Going to Tribunal?
• ACAS Early Conciliation: What It Is, How It Works, and What to Expect