Employment Tribunal Time Limits Are Changing: Here's What Employers Need to Know

For decades, employers have quietly benefitted from the strict three-month deadline to bring claims before an employment tribunal. This short window often caught out employees who were indecisive, unwell, or unaware of their rights, effectively serving as a deterrent and defence for businesses.

However, significant change is on the horizon.

The upcoming Employment Rights Bill, specifically Section 149, is set to double the limitation period for most employment claims from three months to six months. This means employers should brace themselves for increased claims, more threats of legal action, extended negotiations and greater pressure overall.

The scope of these changes, detailed in Schedule 12 of the Bill, is extensive. It impacts nearly all critical employment legislation, including the Employment Rights Act, TUPE, Working Time Regulations, TULRCA and the Equality Act. Very few aspects have been left untouched.

In respect of claims presented to the employment tribunal on or after 6 April 2025, the Vento bands (as they are known) are as follows:

• a lower band of £1,200 to £12,100 (less serious cases);

• a middle band of £12,100 to £36,400 (cases that do not merit an award in the upper band); and,

• an upper band of £36,400 to £60,700 (the most serious cases) with the most exceptional cases capable of exceeding £60,700.

  
  

Interestingly, there is one notable omission, the Employment Tribunals (Extension of Jurisdiction) (England and Wales) Order 1994. This legislation, governing breach of contract claims post-employment, retains the original three-month limit. Whether this was an oversight or a strategic decision remains unclear, but it certainly poses potential pitfalls for advisers.

It's also important to recognise that the new "six-month" deadline isn't straightforward. Employees can still gain additional time through ACAS Early Conciliation, while tribunals retain discretion to extend deadlines in certain cases:

• Discrimination claims can be extended when deemed "just and equitable."

• Unfair dismissal claims can be extended if the employee couldn't reasonably bring the claim earlier.

  
  

Given these nuances, employers need to act proactively. Here are three key steps you should take immediately:

1. Review and Update Document Retention Policies

   • Keep records for at least nine months following an incident, longer if litigation seems likely.

2. Reassess HR Budgets and Insurance Coverage

   • Prepare for potential increases in claims and corresponding rises in insurance premiums.

3. Strengthen Internal Grievance and Appeal Processes

   • With a longer window for claims, employers should use the opportunity for early resolution to mitigate litigation risks.

     
     

For employee advisers, these changes offer more time to build stronger claims, conduct thorough Subject Access Requests, negotiate settlements and file claims previously out of reach due to time constraints.

Overall, this legislative shift signals more than a mere procedural update, it fundamentally rebalances employment litigation dynamics.

Three months was a sprint. Six months is a marathon.

It's time to adjust your pace accordingly.