Businesses braced for wave of tribunal claims as government expands legal time limit
Employers are set to face a fresh legal headache as the time limit for employees to bring claims to employment tribunals doubles, as the next phase of the reformed Employment Rights Act takes effect.
From 1 October, employees will be given the legal right to take six months to bring cases to court against employers on claims including unfair dismissal, discrimination, and unlawful wage deductions, up from a previous limit of three months.
Speaking to City AM, partner and head of employment law at Quastels, Dipti Shah, said an issue employers are likely to face with the time limit extension is ensuring they have the necessary records and documentation to support their case.
“The businesses that come through this well will be the ones that can show, simply and consistently, what employees were told, what risks were identified, why decisions were made and what was done before problems escalated,” Shah said. “That is a cultural shift as much as a legal one.”
Employment Tribunal cases in England and Wales hit a record high of 70,000 from April to June this year, and it is expected the new Employment Rights Act reforms will make this even worse.
“The extension of the tribunal limitation period from three to six months is likely to lead to an increase in claims being issued. A longer period gives potential claimants more time to obtain legal advice, gather evidence and consider litigation, reducing the number of claims that would previously have fallen outside the limitation window,” Adam Grant, partner and head of employment at Wedlake Bell told City AM.
Grant added that for employers, the change is likely to result in workplace disputes remaining live for longer, creating greater uncertainty and extending document retention and witness management obligations.
“While the reform may improve access to justice for workers, increased claim volumes will add further pressure to the tribunal system unless additional judicial and administrative resources are provided,” he added.
Second wave of reforms loom
1 October is the first step in the roll-out of autumn employment law reforms, with a second wave of changes set to take place on 30 October.
The changes include reforms to trade union rights which will grant independent unions the right to enter workplaces to recruit and represent staff, as well as stronger legal protections for employees participating in industrial action.