What is the current situation?

Most employment tribunal claims, including the majority of unfair dismissal claims, working time regulation claims, discrimination claims and unlawful deduction from wages claims, are subject to a three-month time limit (limitation period).

Only a small number of claims have a six-month time limit, such as claims for a statutory redundancy payment, unfair dismissal for taking protected industrial action, and equal pay claims.

So what’s changing and when?

Under the Employment Rights Act, the time limit for bringing most employment tribunal claims will be extended to six months.

Breach of contract claims are currently excluded from this change, although it is not yet clear whether this exclusion is intentional or may be addressed at a later stage.

Some tribunal regions are already experiencing delays of several years between a claim being submitted and the final hearing. Extending limitation periods is likely to result in more claims being brought, which could push hearing dates back even further.

These reforms are expected to take effect from October 2026.

What you need to do

The precise timing of these steps will depend on when the detail of the new legislation is finalised and when the changes come into force. However, employers can begin preparing now:

• Ensure managers carefully document the reasons for dismissals and other key decisions, and retain their notes. This is already good practice, but will become increasingly important if tribunal proceedings take longer to reach a hearing.

• Develop a practice of taking statements from key witnesses at an early stage once a claim is received, rather than waiting until closer to the hearing. This helps ensure recollections remain accurate and protects against witnesses leaving the organisation before the claim is heard.

• Review document retention policies to ensure they remain appropriate in light of the extended time limits. As a general principle, documents may need to be kept for longer. In particular, ensure that investigation notes and other key records are stored securely for a sufficient period to establish whether a claim has been brought.

How Bhayani Law can help you

The extension of employment tribunal time limits is likely to increase the volume of claims and prolong the period between an issue arising and a final hearing. Early, structured advice will be increasingly important.

Bhayani Law supports employers at every stage of the employment tribunal process, including:

• Advising on tribunal risk at an early stage, including prospects of success and commercial strategy

• Assisting with responses to ACAS Early Conciliation and tribunal claims

• Supporting employers to prepare clear, well-evidenced decision-making records

• Managing tribunal claims from issue through to final hearing, including witness preparation

• Advising on settlement options where appropriate, including without prejudice discussions and settlement agreements

We also work proactively with employers to review policies, processes and manager practices to reduce tribunal risk in light of longer limitation periods and extended claim timelines.

New to Bhayani Law?

You don’t have to face the changes alone. Whether you need quick input or ongoing support, we can help you however works best for your business.