How the Employment Rights Act is changing employment tribunal time limits

Review your internal processes to prepare for a likely increase in tribunal claims, which may take longer to reach a hearing

Situation before reforms under the Employment Rights Act 2025

The majority of employment tribunal claims, such as most unfair dismissal claims, working time regulation claims, discrimination claims and deduction from wages claims, have a three-month time limit (limitation period). Only a few employment tribunal claims, such as for a redundancy payment, unfair dismissal for taking protected industrial action and equal pay, have a six-month limit.

So what’s changing and when?

Under the Employment Rights Act, the time limit for most claims will be extended to six months. (Breach of contract claims are currently excluded, but it is not clear at this stage if that exclusion is deliberate or not.)

Some tribunal regions are already seeing a gap of several years between a claim being issued in the tribunal and the final hearing taking place. This change to the limitation periods could push hearings back even further, as more claims are likely to be filed.

These reforms are expected to take effect no earlier than October 2026. 

What you need to do

The timing of some of these actions will depend on when the detail of the new laws is finalised and when the changes come into force. However, you can start to plan now:  

• Ensure that your managers record carefully their reasons for dismissing (and other relevant decisions) and keep their notes. This is something they should be doing already, but it will become even more important with the likelihood of it taking much longer for a claim to reach a hearing.
• Get into the habit of taking statements from key witnesses at an early stage once you receive a claim, rather than waiting until nearer the hearing, to ensure memories are fresh and in case key witnesses leave the business before a tribunal claim is heard.
• Revisit your document retention policies to check they are sufficient for the new time limit. As a general principle, you may need to retain documents for longer. Make sure that key documents, particularly notes of any investigations, are kept securely for enough time 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.