There has been a worrying increase in the number of UK businesses taken to tribunal by employees claiming unfair dismissal, according to new figures.

Employment law firm Peninsula said that there has been a 25 per cent rise in the number of calls it receives from bosses concerned about being taken to court over the past year.

Nearly eight in ten calls to the Peninsula helpline this year have related to unfair dismissal, compared with 54 per cent in 2003.

Just 40 per cent of calls fielded by Peninsula in 1998 were about unfair dismissal tribunal cases.

The research follows recent studies which have shown that employees are now more likely than ever to take their employer to court, with increasing numbers prepared to lie to secure a large compensation pay-out.

Legal action taken by unhappy staff has become a major problem for small businesses in recent years, with many firms unable to afford costly cases.

Worryingly, many small firms do not have basic safeguards from legal action, such as healthy and safety policies or employers’ liability insurance.

Peter Done, managing director of Peninsula, said that the figures indicate that there is a growing problem with the procedures that companies use to discipline workers.

“It would be in the company’s interest to minimise actions made against it, as it drains a business of time, resources and money.

“It also paints a negative image of the company as the concept of unfair dismissal indicates that the company has not been dealing fairly with its biggest and most important asset, its own employees.

“Dismissing an employee should only be a last resort. You should look at other options,” he said.