The Government’s ‘Plan to Make Work Pay’ included a commitment to increase the time limit within which employees can bring an employment claim to an Employment Tribunal (ET) to six months for the majority of claims.
Currently the time limit stands at three months. Extending the time limit to six months, which would bring it into line with the time limit for statutory redundancy and equal pay claims, should in the Government’s view be beneficial to both employees and employers as it will provide more time for employers and employees to prepare.
Preparation is key
Whilst the changes will not take place until at least Autumn 2026, employers need to be aware of the implications with many experts already predicting more claims, adding to the already overstretched burden of the tribunal courts.
The Government believe that the increased time limit will offer a greater opportunity for employees to prepare, seek justice and hold employers accountable for unfair treatment. Whilst employers are worried about:
- Prolonged periods of uncertainty which may impact business operations and employee moral
- Increase in number of tribunal cases leading to longer waiting times for resolution
- Preservation of evidence and witness testimonies.
- Extra administrative burdens namely record-keeping, management and HR personnel training.
- Allocation of additional resources leading to higher legal costs
Not just policies, but perspectives too, must change
In addition all employers must review and update their internal grievance and disciplinary policies. Employers must ensure they are robust, clear, well documented, accessible and any actions are taken promptly. The policies must not only support both the employer’s and employee’s perspective but offer opportunities for internal resolution – informal discussions, mediation, conciliation, or arbitration – before escalating to the cost, time and formality of a tribunal.
Areas for action
We recommend that all employers should use the time now to prepare for these changes. Likely initial steps will include:
- Staying informed and keeping abreast of legislative dates and changes
- Consulting with an employment law specialist to understand the potential impact of these changes on your business
- Reassessing HR budgets and insurance cover. The increased time limit might trigger more claims, which could raise premiums
- Reviewing and updating your grievance and disciplinary policies to ensure they are compliant with the new time limits
- Ensuring all relevant documents, including employment contracts, policies, and records of disciplinary actions, are up-to-date and easily accessible.
- Implementing training for HR staff and mangers on the new time limits, their responsibilities and the importance of following procedures.
- Making your employees aware about the time limits for making claims
- Encouraging early and prompt intervention by looking into ways in which you can use mediation, or other dispute resolution methods to resolve disputes internally
- Documenting everything from detailed records of communications, meetings, actions, witness statements and other evidence. Make sure they are organised and accessible and that you have a plan in place for securing legal representation too.
How can we help?
With the impact of these changes likely to be felt across your entire business, we highly recommend that you start planning and preparing now. For advice, help and support, please email caroline.robertson@actifhr.co.uk