Currently, when an employee believes they have been unfairly dismissed or unfairly treated they have three months to bring an employment tribunal claim. If an employee fails to bring their claim within this time limit, it is timed out.
In recent years employment law has been significantly overhauled and one of the most significant changes being introduced via the Employment Rights Act 2025 is the time limit for bringing most employment tribunal claims.
Emphasis on resolution
From 1 October 2026, the time limit will double from three to six months for most claims. This additional amount of time is intended to provide workers with more time to prepare their care, seek legal advice, gather evidence and consider their options before commencing legal proceedings. It will also enable individuals who might require legal support or disability accommodations more time to secure the right solution. The government also believes that this time extension will allow more time to resolve complaints before they escalate into claims.
The eagle eyed amongst you will have noted the use of the word most. The extended period will apply to the majority of workplace disputes, this includes unfair dismissal, harassment, unlawful deductions from wages, whistleblowing and discrimination claims. But it’s worth mentioning that breach of contract claims will keep to the existing three month time limit.
Increased administrative burden
This new change will place additional burdens on employers. Not only is there a chance of receiving an increased number of claims, weaker evidence due to fading memories and mounting costs, but with the increasing tribunal backlog, it may prolong legal and financial uncertainty.
Furthermore, during the extended period and beyond, it’s worth pointing out that employers might find themselves not only defending a claim, but managing legal risks, operational impact and reputational issues too.
To offset this, organisations must ensure that they act quickly and thoroughly to protect their organisation. In addition to shoring up and strengthening all HR processes, it’s essential that the following actions are undertaken:
- Adopt a proactive tribunal management strategy – get sound, early legal advice so you can ensure everything is in order.
- Overhaul current employee record-keeping to retain evidence for longer. So emails, WhatsApp messages and any CCTV footage must be kept for at least 6-12 months longer than the standard period. This may mean making a change to data retention policies.
- Review grievance and disciplinary processes to ensure they are robust, prompt, and thoroughly documented, reducing the likelihood of successful tribunal claims in the first place.
- Maintain meticulous documentation of everything from verbal warnings and performance improvement plans, to feedback, decisions taken and meeting minutes
- Train managers to spot and resolve issues early. Empower them to have effective conversations and defuse tensions before employees have time to stew and escalate any issues. Also highlight the importance of them documenting their decisions.
How can we help?
We encourage all businesses to review their internal processes now to ensure they remain effective over a longer period of potential litigation risk. If you would like tailored professional advice in relation to any aspect of preventing or resolving a workplace dispute, please get in touch today caroline.robertson@actifhr.co.uk