Employment Tribunal Claims: Employer's Guide

Employment tribunal claims can be stressful and expensive for employers. Understanding the process helps you respond effectively and potentially avoid the hearing altogether.

What Claims Can Be Brought?

Common employment tribunal claims include:

• Unfair dismissal - dismissed without fair reason or procedure
• Discrimination - based on protected characteristics
• Unpaid wages - including holiday pay, notice pay
• Breach of contract - only if employment has ended
• Redundancy pay - statutory or contractual
• Whistleblowing detriment - treated badly for raising concerns
• Working time breaches - rest breaks, holiday denials

Time Limits for Claims

Claim Type	Time Limit
Unfair dismissal	3 months less 1 day from EDT
Discrimination	3 months less 1 day from act
Unpaid wages	3 months less 1 day (or series)
Redundancy pay	6 months from EDT
Equal pay	6 months from end of employment

EDT = Effective Date of Termination

Important: ACAS early conciliation extends these limits.

The Tribunal Process

Step 1: ACAS Early Conciliation

Before most claims, employees must contact ACAS:

1. Employee contacts ACAS
2. ACAS offers conciliation (up to 6 weeks)
3. If unresolved, ACAS issues certificate
4. Employee can then submit tribunal claim

Early conciliation is free and confidential. Around 50% of cases settle at this stage.

Step 2: Claim Submitted (ET1)

The employee submits their claim form. You'll receive:

• Copy of the ET1 form
• Notice of claim
• Response deadline (usually 28 days)

Step 3: Your Response (ET3)

You must respond within 28 days:

• Complete the ET3 form
• Set out your defence
• Include all relevant facts
• Provide supporting documents

Don't miss the deadline - failing to respond can result in judgment against you.

Step 4: Case Management

The tribunal may hold a preliminary hearing to:

• Clarify the issues
• Set a timetable
• Order disclosure of documents
• Consider strike out applications

Step 5: Disclosure

Both parties must disclose relevant documents:

• Employment contracts
• Policies and procedures
• Investigation notes
• Correspondence
• Performance records

Step 6: Witness Statements

Exchange written statements of evidence:

• Set out facts in chronological order
• Attach relevant documents
• Prepare witnesses for cross-examination

Step 7: The Hearing

Tribunal hearings are usually public:

• Panel of Employment Judge (plus lay members for some claims)
• Claimant presents their case first
• Cross-examination of witnesses
• Respondent presents their defence
• Closing submissions
• Reserved judgment or decision on the day

Costs in Tribunal

No Fee to Bring a Claim

Since 2017, there's no fee for employees to submit claims.

Legal Costs

Unlike civil courts, employment tribunals generally don't award costs:

• Each side bears their own costs
• Costs orders are rare (for unreasonable conduct)
• You can't recover legal fees even if you win

Compensation Costs

If you lose, you may have to pay:

Award Type	Typical Range
Basic award (unfair dismissal)	Up to £21,000
Compensatory award	Up to £115,115
Discrimination	Unlimited
Injury to feelings	£1,100 - £56,200
ACAS uplift	Up to 25% increase

Settlement Options

ACAS Conciliated Settlement (COT3)

• Binding agreement through ACAS
• Employee can't bring further claims on same facts
• No confidentiality unless agreed
• Common way to resolve claims

Settlement Agreement

• Legally binding contract
• Employee must receive independent legal advice
• Employer usually pays for advice (£500+)
• Can include confidentiality clauses
• Typically includes reference wording

When to Settle?

Consider settlement when:

• Defence is weak
• Key witnesses unavailable
• Documents are damaging
• Legal costs will be high
• Publicity concerns
• Management time considerations

Defending a Claim

Building Your Defence

1. Gather all documents - emails, policies, meeting notes
2. Interview witnesses - get their recollection early
3. Review the procedure - did you follow ACAS Code?
4. Check consistency - how were similar cases handled?
5. Assess strengths and weaknesses - be realistic

Common Defence Strategies

For unfair dismissal:

• Show one of 5 fair reasons
• Demonstrate fair procedure
• Prove reasonable response

For discrimination:

• Challenge comparator choice
• Provide non-discriminatory explanation
• Show consistent treatment

For wages claims:

• Produce contracts and payslips
• Show calculations
• Explain any deductions

After the Hearing

If You Win

• Claim dismissed
• Usually no costs recovery
• Employee may appeal (within 42 days)

If You Lose

• Pay compensation within 14 days
• Can request written reasons
• Can appeal on point of law (42 days)
• ACAS can enforce unpaid awards

Avoiding Tribunal Claims

Prevention is better than defence:

1. Follow fair procedures - always
2. Document everything - contemporaneously
3. Train managers - on handling issues properly
4. Act consistently - treat similar cases similarly
5. Take advice early - before situations escalate
6. Keep communication open - grievances are cheaper than tribunals
7. Settlement where appropriate - sometimes the pragmatic choice

Getting Help

• ACAS - Free guidance and conciliation
• Employment solicitors - For legal advice
• HR consultants - For procedure guidance
• Legal insurance - Check if you have cover