What is the current law on employment tribunal time limits?

Employment tribunal proceedings are often complex and time-sensitive, so it’s essential that employers and business owners understand how the whole process works. In 2023/24, 97,000 employment tribunal claims were made, and there’s a backlog of about 44,000. They can also often cost a huge amount, with the highest award this year being £995,128. So, we’ll be taking a look at tribunal time limits to help you understand the process, how to respond and if there are any changes on the horizon.

 

Current law

Under UK law, employment tribunal claims have to be filed within certain time frames, which change depending on the type of claim. Missing these deadlines can result in the case being struck out. Let’s take a look at some of the key time limits:

• Unfair dismissal – three months minus one day
• Redundancy payment – six months minus one day
• Discrimination – three months minus one day
• Equal pay – six months minus one day
• Unlawful deductions from wages – three months minus one day
• Contract claims – three months minus one day Holiday pay – three months minus one day

 

When do employment tribunal time limits start?

The time limits for filing claims begin from different points, depending on the type of complaint.

• Unfair dismissal – time starts from the “effective date of termination”. This could be the end of an employee’s notice period or the date they leave the business.
• Pay or wage disputes e.g. unlawful deductions – the clock starts from the payment date when the wrong amount was received or not paid at all.
• Discrimination cases – time begins from the date of the last act of discrimination or harassment included in the claim.

 

What to do when an employee files a claim

Employment tribunal claims can understandably feel daunting, but being informed and taking methodical action will help reduce the stress and make sure you stay on the right side of the law. Here’s a step-by-step overview of how to handle common claims.

Acknowledge receipt and gather information

It’s crucial to acknowledge that you’ve received the claim and start preparing to respond before the deadline. You can use this time to gather any documentation related to the case, like the employee’s contract, performance reviews, disciplinary records and correspondence.

Seek legal advice

Expert guidance is going to be invaluable when it comes to navigating a tribunal claim. Whether it’s an employment lawyer or HR professional, having someone explain your rights, responsibilities, the potential risks and the likely strengths and weaknesses of the claim and your defence, will help you respond properly.

Respond to the claim

Follow the tribunal’s fixed procedures and meet the right deadlines for officially responding to the claim. Put together a solid response that outlines your version of events and back it up with evidence. A badly prepared response could weaken your case, even if you believe you’re in the right.

Consider settlement options

Not every claim needs to go to a hearing – you could look at settlement options like negotiation or mediation to save time, reduce costs and keep up your professional relationship. A settlement should be “without prejudice”, so wouldn’t be treated as admitting you were at fault.

Prepare for a hearing (if necessary)

If settling isn’t possible, focus on preparing for the hearing. Work closely with your legal representative, put together the evidence and see if there are any potential witnesses.

 

Exceptions and extensions

There are some cases where standard time limits or procedures might not apply, so here are a few scenarios where things might happen differently.

Statutory exceptions

Some claims allow exceptions – for example, if new evidence comes to light after the time limits have passed, it might still be possible for a claim to be submitted. Exceptional circumstances like a serious illness that prevented filing within the limit might also qualify.

Extension requests

Extensions aren’t guaranteed but they can be applied for in cases of extenuating circumstances. These might include unavoidable admin delays or critical personal circumstances that got in the way.

Disability or other circumstances

Under the Equality Act, adjustments have to be made to accommodate claimants with disabilities. For example, more time might be allowed if a disability prevented them from filing a claim on time.

International considerations

For employees who work abroad, timelines and procedures might vary, and the UK may not be the appropriate jurisdiction to bring the claim – so you should seek legal advice to handle these claims properly.

 

Potential changes to employment tribunal time limits

While the Employment Rights Bill, published on 10 October 2024, didn’t outline any specific changes to employment tribunal time limits, an amendment paper published seven weeks after this has outlined key changes – including an extension of the time limit for employees to bring a tribunal claim.

This proposal extends the time limit from three months to six months in all types of cases, meaning employees would have longer to act. While it is possible this may not be passed, it is likely to be, and could lead to an increased number of claims, so it’s worth knowing about just in case.

 

Citation – here to support you through employment tribunals

Our team of HR consultants and Employment Law consultants are on hand to provide personalised guidance to make sure your business stays compliant and your workforce is protected. We’ll tailor our support to meet the unique needs of your business, helping you navigate the complex challenges your business might be facing.

Contact us today to see how we can help you.