'Double Whammy' Warnings for Employers as Government Extends Tribunal Claim Time Limits

Irwin Mitchell says the government's decision this week to extend the time limit for employees bringing tribunal claims to six months could lead to an increase in claims, as employees will have more time to consider their position and take advice.

The national law firm says that this, together with the proposed day one right to bring an unfair dismissal claim, could create a ‘double whammy’ for employers.

The Employment Rights Bill amendment, which was announced on Wednesday, is particularly relevant for claims such as unfair dismissal, holiday pay, and discrimination, which previously had a three-month deadline.

Expert Opinion

"The extension could lead to an increase in claims as employees will have more time to consider their position and take advice. This, together with the proposed day one right to bring an unfair dismissal claim, is likely to be a ‘double whammy’ that employers don’t need.

"Given that this was a manifesto pledge, many businesses will not be surprised by this change, despite it not being in the original Bill. Additionally, a six-month rule already exists for some employment claims."
Elaine Huttley, Head of Employment at Irwin Mitchell

The extension is based on findings from the Law Commission in 2020, which recommended the change to address the difficulties faced by claimants in bringing a claim within three months, especially if they wanted to pursue internal grievance procedures.

The new provision is expected to come into force sometime in 2025, following the enactment of the Bill.