From 1 October 2026, employees will have twice as long to bring tribunal claims. The time limit doubles from three months to six months under the Employment Rights Act 2025 (ERA 2025), and for employers, the implications are significant.
A longer limitation period means greater exposure for employers to potential claims, and a clear signal to tighten processes around record-keeping, dispute resolution and the management of early exits.
Key dates
- 1 October 2026 - Six-month time limit takes effect (England, Wales and Scotland)
- 9 November 2026 - Breach of contract claims extended in Scotland (note: 6 weeks later than England and Wales)
- 1 January 2027 - Statutory cap on unfair dismissal compensation removed
What is changing?
Currently, most employment tribunal claims must be brought within three months (less one day) of the termination date or the act complained of. Only a handful of claims, such as statutory redundancy pay and equal pay, carry a six-month limit.
From 1 October 2026, that changes. The ERA 2025 extends the time limit to six months for most claims, including unfair dismissal, discrimination, whistleblowing, unlawful deductions from wages, and TUPE.
Separate statutory instruments extend the six-month limit to additional claims, including part-time and fixed-term worker status, breach of contract, information and consultation rights, and zero-hours contract exclusivity. Very few employment tribunal claims will fall outside the new regime.
One exception for cross-border workforces: the breach of contract extension takes effect in England and Wales on 1 October 2026, but Scotland follows on 9 November 2026.
Certain claims retain their existing limits. Applications for interim relief must still be brought within seven days of termination. Equal pay claims in ‘stable work’ cases (where employment continues) remain subject to six months.
When does the new time limit apply?
The key date is when the conduct occurred, not when the claim is filed. If the act complained of happens on or after 1 October 2026, the six-month limit applies. If it happens before, the three-month limit still applies, even if the claim is filed in 2027. For claims based on a series of acts, the last act determines which regime applies. Employers should expect the two regimes to run in parallel for some time during this transition period.
What does this mean for employers?
Currently, employees have three months to bring a claim. From October 2026, that doubles to six months. Acas early conciliation can extend that window further still, in some cases by several additional weeks. The practical result is that employers may not hear about a potential claim until many months after the events in question. That demands a change in how workplace disputes are documented and managed from the outset.
Record-keeping
With a six-month window, key documents, disciplinary records, grievance files, performance notes, termination correspondence, will need to be retained for longer than many employers are used to.
Employers may find themselves defending claims they thought were long closed. Retention policies will need to reflect this, balancing data protection requirements against the risk of discarding records that may later be needed for a defence.
Settlement dynamics
Longer time limits give employees more room to seek advice, gather evidence, and weigh their options. This will shift settlement dynamics, particularly once the statutory cap on unfair dismissal compensation is removed from 1 January 2027. The current cap (the lower of 52 weeks’ pay or £123,543) will no longer apply, making claims significantly more attractive to higher earners. Expect longer, more complex settlement discussions.
Increased claims
Many potential claimants currently miss the deadline, whether through difficulty accessing advice, uncertainty, or misunderstanding the rules.
The six-month window removes those barriers. Expect more claims, filed later, to a tribunal system already facing record backlogs. When cases do reach a hearing, fading memories and departed witnesses will make them harder to defend.
What should employers do now?
- Review data retention policies to ensure that employment records are kept for at least nine months beyond the effective date of termination, allowing for the six-month limitation period plus any Acas early conciliation extension.
- Train line managers on the importance of accurate, contemporaneous record-keeping, documenting key interactions at the time they happen.
- Audit internal HR processes - grievances, disciplinary procedures and performance management - to ensure they are robust, consistently applied and thoroughly documented.
- Ensure contracts of employment are up to date, with clear PILON clauses to prevent notice periods from inadvertently extending the effective date of termination and creating additional exposure. When exercising a PILON clause, employers should expressly notify employees in clear and unambiguous terms that the contract is being terminated with immediate effect, simply making a payment without express notification may not be sufficient.
Key takeaways
- Longer time limits demand sharper processes, employers who act now will be best placed to navigate the new claims landscape.
- Review retention policies, train managers on contemporaneous record-keeping, and audit HR processes now, before the change takes effect.
- Prepare for a shift in settlement dynamics ahead of uncapped compensation in January 2027.
How can we help?
For any questions on how these changes may affect your organisation, please contact our employment team.
