On 10th October 2024, the Labour Party introduced its Employment Rights Bill (the Bill) before Parliament following its pledge made during the 2024 general election to introduce the bill within 100 days of taking office.

One of the Bill’s most consequential measures for both employers and employees is its proposal to increase the existing time limits for bringing a claim in the Employment Tribunal. This article proposes to summarise the existing time limits as well as how the Bill will change this and the effect it could have on employers or employees.

What are the current time limits in the Employment Tribunal?

Currently, there are strict time limits for making a claim in the Employment Tribunal. However, there are different time limits depending on the type of claim you wish to make. The time is generally three months minus one day for most claims but for equal pay claims and statutory redundancy pay claims, the time limit is six months minus one day.

When an employee engages in early conciliation with ACAS, the time limit is paused during that period (for up to six weeks).

How will the Bill affect the current time limits?

Section 149 of the Bill increases the limitation period for nearly every employment claim from three months to six. This change will apply to discrimination claims, claims for unfair dismissal and unlawful deduction of wages. Statutory redundancy pay claims remain unaffected as their time limit is already set at six months.

However, the changes will not apply to any breach of contract claims pursued in the Employment Tribunal under the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994. These claims will therefore continue to have a three-month time limit.

Conclusion

Whilst the proposed increase in time limits will likely lead to a rise in claims, employers should also remember that a higher limitation period could allow further time to negotiate settlement agreements and facilitate an amicable exit. In light of the increased time limit, tribunals may also become reluctant to allow claims to proceed when they are presented out of time.

In addition, it is also worth bearing in mind that, at the time of writing, most commentators expect that the revised time limits will not come into effect until 2026 at the earliest, given

that the government will also need to pass secondary legislation once the Bill has received royal assent.

We would recommend that employers proactively review any internal policies relating to disciplinary matters or grievance processes and confirm that these remain suitable for the increased time limits moving forward.

Please contact us if you would like more information about the issues raised in this article or any other aspect of employment law at 02920 345 511 or employment@berrysmith.com