UK: Update: Extension of Time Limits for Employment Tribunal Claims

 

The time limit for bringing most employment tribunal claims has been extended from 3 months to 6 months. This significant change will have a major impact on both employers and employees.

What does this mean?

Employees now have an additional 3 months to bring their claims to tribunal, giving them more time to consider their options and gather evidence.
Employers will face an extended period of uncertainty, as the risk of claims being filed will be higher. However, this also opens up greater opportunities for parties to resolve disputes before they escalate into formal proceedings.

 

Why settlement agreements could become more attractive:

With the longer time frame, employees may feel empowered to hold out longer before deciding whether to pursue a claim or accept a settlement. However, employers should see this as an opportunity to proactively resolve potential disputes through settlement agreements. Here’s why:

✅ Avoid prolonged uncertainty: A settlement agreement offers both parties a quicker and more predictable resolution, without waiting for months or years for a tribunal decision.
✅ Cost-effective resolution: The cost of defending a claim in tribunal can be substantial. A settlement agreement can often save significant legal costs and reputational damage.
✅ Flexibility and control: Unlike a tribunal hearing, where the outcome is decided by a judge, a settlement allows both parties to agree on terms that work for them.

In light of this change, employers should consider reviewing their dispute resolution processes and offering settlement agreements to avoid the risk of drawn-out legal battles.

 

For further information, please contact:

Laura Smith, Associate

ebl miller rosenfalck, London

e: laura.smith@ebl-mr.com

t: +44 (0) 7384 237 985

 

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