The Confederation of British Industry (CBI) renewed its plea for reform of Employment Tribunals following news that applications rose 32 per cent in a year.
It wants the government to help Employment Tribunals (ETs) handle the rise by ensuring that full hearings only take place when there is no reasonable alternative.
It says ETs should do more to discourage tribunal hearings over claims with little chance of success and encourage more people to explore other methods of finding a resolution.
CBI Deputy Director-General John Cridland said, "This growth in litigation is alarming. It reinforces the critical need for the ACAS Conciliation Service, but conciliation is not enough. We need to make greater use of pre-hearings and of individual arbitration."