For years, the three-month deadline to bring a claim in the employment tribunal has quietly worked in favour of employers. It’s long been a protective mechanism, catching out employees who were unaware, uncertain, or unable to act quickly.
Under the Employment Rights Bill, currently progressing through Parliament, the standard time limit for most employment-related claims will be extended from three to six months. This isn’t just a procedural tweak, it’s a shift that could significantly impact how employers manage risk, resolve disputes, and handle claims.
What’s Changing and Why It Matters
Section 149 of the Bill proposes to double the limitation period for a wide range of claims. Schedule 12 takes this even further, making sweeping amendments to legislation including:
- The Employment Rights Act 1996
- TUPE (Transfer of Undertakings (Protection of Employment) Regulations)
- The Working Time Regulations
- TULRCA (the Trade Union and Labour Relations (Consolidation) Act 1992)
- The Equality Act 2010
Don’t Be Misled – Six Months Won’t Always Mean Six Months
While the proposed new default is six months, the calculation of limitation periods remains far from straightforward.
- Acas Early Conciliation pauses the limitation clock, sometimes for several weeks.
- Tribunal discretion still applies:
- For unfair dismissal, where it wasn’t reasonably practicable to bring a claim in time.
- For discrimination, where it is just and equitable to extend the deadline.
So, although the window for claims is expanding, the complexity remains and so does the risk.
What Employers Should Do Now
With this significant shift on the horizon, here are four proactive steps every employer should consider:
1. Review and Update Document Retention Policies
Prepare to hold on to relevant records for at least nine months following any incident, longer if there’s a chance of litigation.
2. Reassess Legal/HR Budgets
More time to claim will likely mean more claims. Factor this into your planning for legal spend, for internal and external resourcing.
3. Secure Employment Disputes Insurance
We’ve said it before: if you employ people, you need this insurance cover. Now more than ever, insurance against employment litigation is essential. Please contact us for further details.
4. Strengthen Internal Grievance and Appeal Processes
With more time to raise and resolve workplace issues before a claim is issued, your internal procedures can become a powerful tool for early resolution, possibly helping to avoid litigation altogether.
What’s Next?
The Employment Rights Bill is still making its way through Parliament and is expected to reach its third reading later in 2025. The proposals have sparked vigorous debate. Supporters say the changes will strengthen workers’ rights and support economic growth. Conversely, some business leaders and peers have criticised the Bill, expressing concerns that it may impose significant costs on employers and potentially harm the economy.
Whatever the outcome, employers must be prepared.
Free Webinar: Coming Soon
As the Bill approaches its final stages, we’ll be holding a free client webinar led by Avery Law’s Employment Team. We’ll break down the final version of the legislation, what it means in practice, and how your business should respond.