Businesses braced for wave of tribunal claims as government expands legal time limit

Employers anticipate a surge in tribunal claims following the expansion of the legal time limit for employees to file employment-related cases. As part of the reformed Employment Rights Act, the deadline for employees to bring claims to employment tribunals has been extended from three months to six months, effective from October 1st.

This amendment grants employees six months to pursue claims for unfair dismissal, discrimination, and unlawful wage deductions, among other issues. Quastels partner and head of employment law, Dipti Shah, warned that businesses must maintain meticulous records and documentation to substantiate their cases. She emphasized that a cultural shift is required, alongside legal adjustments, highlighting the importance of consistently demonstrating employees' accounts, identified risks, decision-making processes, and past actions.

Tribunal cases in England and Wales reached a record high of 70,000 between April and June this year. Consequently, the reform is expected to exacerbate this trend, as a longer period grants potential claimants more time to seek legal counsel, compile evidence, and contemplate litigation. Adam Grant, partner and head of employment at Wedlake Bell, commented that the change will likely lead to workplace disputes persisting for more extended periods, causing heightened uncertainty and prolonging document retention and witness management responsibilities.

While the reform potentially enhances access to justice for workers, the rise in claim volumes will impose additional strain on the tribunal system unless further judicial and administrative resources are allocated. The reformation is the first phase of autumn employment law reforms, with a second wave of changes slated for October 30th.

These subsequent reforms encompass trade union rights, granting independent unions the authority to recruit and represent staff within workplaces. Additionally, these changes bolster legal safeguards for employees engaged in industrial action.