In brief:
- On 1 October 2026, the Employment Rights Act 2025 ("ERA 2025") will double the three-month time limit for bringing most employment tribunal claims to six months.
- The new limitation period will only apply to claims where, in broad terms, the date of the alleged mistreatment falls on or after 1 October 2026.
- Existing rules on extensions of time - whether through Acas early conciliation or the employment tribunal's discretion - are unaffected by this change.
- Employers should consider the practical consequences of the longer limitation period, including on document retention, witness evidence and settlement negotiations.
What is changing?
On 1 October 2026, the ERA 2025 will increase the current three-month time limit for bringing most tribunal claims to six months. This applies to claims where the 'relevant date' - in broad terms the date of the alleged mistreatment - falls on or after 1 October 2026. For example, for unfair dismissal, the relevant date is the effective date of termination, and for discrimination, it is the date of the act/omission complained of or, where conduct extends over a period, the end of that period.
The existing three-month time limit has been criticised as a barrier to justice: employees facing dismissal or discrimination, for example, are expected to act quickly during a stressful period of their working lives, often before they are even aware a deadline exists. The Government's intention is to reduce procedural obstacles, widen access to the employment tribunal, and give both employer and employee more time to resolve disputes before a claim is issued.
Why does this matter to employers?
The extension, viewed alongside the impending reduction in qualifying service for unfair dismissal claims from two years to six months and the removal of the compensatory cap on unfair dismissal awards from 1 January 2027, creates a markedly more challenging environment for employers defending claims.
The six-month limitation period does not operate in isolation. Before issuing a claim, claimants must usually first notify Acas and complete the early conciliation process, which itself can last up to 12 weeks. Layered on top of a six-month limitation period and set against the backdrop of significant and well-documented delays in employment tribunals, the practical reality is that it could be years between the act complained of and the matter reaching a final hearing. In those circumstances, witnesses may be harder to trace, documents may be more difficult to retrieve, and the reputational and commercial uncertainty of live litigation hangs over the business for longer.
There is also a broader question: with claimants having a time limit that is twice as long, will employment tribunals be less willing to allow claims that are presented late, after the six-month period? How tribunals will approach this remains to be seen.
One positive for employers is that a longer time limit window reduces the pressure on employees to issue proceedings to protect their legal position during an internal grievance or disciplinary process that is still ongoing at the three-month point, or while settlement discussions are under way.
What should employers be doing now?
With the change taking effect on 1 October 2026, employers should act on the following as a matter of priority:
- Review document retention policies. Most HR records are already kept for much longer than six months, but some short-life data may not be. CCTV footage, call recordings, enterprise instant messages and records of unsuccessful job applicants are often deleted automatically after a short period. Check that retention periods for this data are increased to take account of the new six-month time limits.
- Build witness evidence capture into exit processes. Key witnesses may have left the business before a claim is issued. Where individuals leave following a dispute or performance process, consider capturing written accounts and supporting documents before they exit.
- Revisit settlement agreement drafting. Review standard litigation assistance clauses and other provisions to take account of the fact that claims may arrive much later than previously anticipated.
- Consider the implications for historic evidence. Employment tribunal proceedings will increasingly involve events that took place well before the hearing itself. Employers should think carefully now about how they document decisions and processes, knowing that the reliability and weight of that evidence may be tested much later.
How can Mishcon de Reya help?
Our Employment team advises on tribunal strategy, HR governance and workforce risk. Whether you need to audit your document retention policies, stress-test your exit processes or update your template settlement agreements, we can help.
To discuss how these changes may affect your business, please contact a member of the Employment team.