Currently, most Employment Tribunal claims (including those related to unfair dismissal, discrimination, and unlawful deduction from wages) must be lodged within three months of the act complained of.
On 27th November 2024 the Government confirmed its plans to extend the time limits for bringing Tribunal proceedings from three months to six.
Many welcome this proposed measure, which will be subject to further consultation, believing it is meaningful and will allow employers and employees more time to resolve disputes and avoid long, protracted legal claims. However, just as many believe this change will bring uncertainty and lead to an overall increase in claims. This rise in claims will likely put additional pressure on an already overstretched Tribunal system, (unless additional funding or resources are provided) resulting in further delays.
The amendments did not specify when the new time limits will take effect.
What does this mean for employers?
The disadvantage for employers is that they will be exposed to a longer period of uncertainty around whether a claim will be brought against them. Adding on the length of the ACAS Early Conciliation process, once the changes come into effect, it will be possible for employees to issue claims almost seven and a half months after the event.
Combined with the proposed ‘day one right’ not to be unfairly dismissed, it is likely that employers will face more Tribunal claims.
However, one advantage of the change is that employers will have more time to settle disputes outside of the Tribunal, hopefully incentivising both parties to engage in meaningful negotiations.
What can employers do?
Employers should review their internal policies (such as disciplinary, grievance, and capability policies) to ensure they are in line with recent employment law changes. Employers should ensure that they follow their procedures carefully, retaining detailed notes, as this documentation will help protect employers if they are faced with the threat of an Employment Tribunal claim.
To find out more about the Bill, the incoming changes, and how to prepare for them, please read here: Coffee & Catch-up: The Employment Rights Bill – Greene & Greene.
This is only intended to be a summary and not specific legal advice.
Wei Kang Lee is a Solicitor in our Employment team. If you would like further information or advice, please contact him or another member of our Employment team.
