24th September 2026 | Hudson Contract
Employers across the economy are being blighted by AI-generated employment tribunal claims and data-related disputes.
According to Hudson, construction is seeing an increase in status claims, where self-employed subcontractors attempt to claim full employment rights or worker rights which entitle them to holiday pay.
Latest Ministry of Justice statistics show single employment tribunal claims rose by 51 per cent in the year to June, increasing the backlog to 70,000 open cases.
The ACAS conciliation service has also reported an increase in the number of cases that include an aggravating factor such as disability discrimination.
Along with Subject Access Requests – known as SARs – under data protection laws, the increase is adding pressure to an inadequate system already buckling under demand.
Labour’s flagship Employment Rights Act is expected to introduce around 25 new grounds for people to sue their employers on top of 100 existing avenues for claims, and the unions which bankroll the party are already demanding more.
Hudson’s managing director Ian Anfield said there are many pitfalls for employers in the new legislation but cutting the qualifying period for unfair dismissal from two years to six months, and extending the time someone has to raise a claim from three to six months after they leave are among the riskiest for employers.
Ian added: “AI cases are already starting to bog down businesses and run up legal costs with spurious challenges based on pages and pages of meaningless waffle, which can’t be ignored in case any valid points are buried within them. At Hudson, we deal with these complaints on our clients’ behalf so they can get on with running their companies but many firms are left exposed.”
Ian said in one very recent case, a complainant produced 900 pages of AI-generated authorities, but thankfully when it came to court, the experienced judge refused to consider any of it unless directly referenced in the claimant's witness statement.
Ian predicted the new Fair Work Agency, which is designed to hammer bad employers with a whole range of enforcement powers, would soon be swamped with meaningless AI-generated complaints, as has been the case with ACAS and the Information Commissioner’s Office.
The chair of ACAS told the Financial Times this week that AI was “a huge issue” driving case volume and complexity.
