Employment Tribunals: A Complete UK Guide

An employment tribunal is the specialist body that decides disputes between employers and employees or workers — claims such as unfair dismissal, discrimination, unpaid wages, redundancy pay and breach of contract. Before bringing most claims, you must first go through Acas early conciliation, which gives both sides a chance to settle. There is a strict time limit — generally three months less one day from the event complained of — and missing it usually means losing the right to claim. Bringing a claim is currently free (there is no tribunal fee), and as a general rule each side bears its own legal costs whatever the outcome. This guide explains, for employees and employers, what the employment tribunal does, the claims it hears, the time limits, the step-by-step process, the remedies, costs, and appeals — so both sides understand how a workplace dispute is actually resolved.

What an employment tribunal is

An employment tribunal is an independent judicial body that hears and decides employment disputes. It is less formal than a court, but it is a proper legal forum: cases are decided by an employment judge (sometimes sitting with two non-legal members for certain claims), evidence is given under oath, and the tribunal’s decisions are binding and enforceable. Tribunals were designed to give employees and employers an accessible way to resolve workplace disputes without the full cost and formality of the civil courts. They handle a wide range of claims arising from the employment relationship, and their decisions can result in significant compensation. Understanding how the tribunal works — and the strict procedure and deadlines that apply — is essential for anyone bringing or defending a claim.

What claims an employment tribunal hears

Employment tribunals hear most claims arising from work, including:

Some high-value contract claims must instead go to the ordinary courts, and the right claim, in the right forum, within the time limit, is the starting point for any case.

Time limits

Most employment tribunal claims must be brought within three months less one day of the act complained of (for example, the effective date of termination in an unfair dismissal claim under section 111 of the Employment Rights Act 1996). The clock is paused during Acas early conciliation, which can extend the deadline, but the underlying limit is strict and tribunals only rarely allow claims in late.

Tribunal time limits are strict and short, and missing them is one of the most common ways a good claim is lost. The general rule is that a claim must be brought within three months less one day of the act complained of — for example, the date of dismissal, or the discriminatory act (or the last act in a continuing course of discrimination). The Acas early conciliation process (below) “stops the clock” and can extend the deadline somewhat. Tribunals have only limited discretion to allow late claims, so the safe approach is always to act well within time. Reform under the Employment Rights Act 2025 is expected to extend many tribunal time limits from three to six months, but until that takes effect the three-month rule applies. Whatever the deadline, anyone considering a claim should take advice and start the process promptly.

Acas early conciliation

Before starting most claims, a prospective claimant must first notify Acas and go through early conciliation under section 18A of the Employment Tribunals Act 1996. Acas issues an early conciliation certificate with a unique reference number, and that reference must be quoted on the ET1 claim form — without it, the tribunal will generally reject the claim.

Before bringing most tribunal claims, a prospective claimant must notify Acas and go through early conciliation. This is a free, confidential service in which an Acas conciliator tries to help the parties reach a settlement without litigation. The process is compulsory as a first step — you cannot simply lodge a tribunal claim without an Acas early conciliation certificate — and it serves two purposes: it gives both sides a genuine opportunity to settle quickly and cheaply, and it pauses the tribunal time limit while conciliation is under way. Many disputes settle at this stage, which benefits both sides by avoiding the cost, delay and risk of a hearing. If conciliation does not resolve the matter, Acas issues a certificate, and the claimant can then bring a tribunal claim within the (adjusted) time limit.

The tribunal process step by step

A tribunal claim generally moves through these stages:

Cases can settle at any point along the way, and many do. The process can take several months to well over a year, depending on complexity and the tribunal’s workload.

The claim and the response

A claim starts with the ET1 claim form, in which the claimant sets out who they are, who they are claiming against, the claims they are bringing, and the facts relied on. Getting the ET1 right matters: it defines the claim, and errors or omissions can cause problems later. The employer (the respondent) then files an ET3 response form, usually within 28 days, setting out whether and why it resists the claim. A respondent who fails to file an ET3 in time risks a default judgment. These two documents frame the dispute, and the care taken with them — accurately pleading the claim and the defence — often shapes how the rest of the case proceeds. Both sides should treat the ET1 and ET3 as critical documents, not formalities.

Case management and the final hearing

After the response, the tribunal manages the case towards a hearing. There may be a preliminary or case-management hearing to decide issues, set a timetable, and give directions on disclosure of documents, exchange of witness statements, and the preparation of a bundle of documents. At the final hearing, both sides present their evidence: witnesses give evidence and are cross-examined, documents are referred to, and each side makes submissions. The tribunal then reaches its decision, either at the hearing or in a reserved written judgment sent out later. For discrimination and some other claims, a separate remedy hearing may follow to decide compensation. The hearing is the culmination of the process, and thorough preparation — the evidence, the documents and the legal arguments — is what wins or loses a case.

Remedies

What the tribunal can award depends on the claim. For unfair dismissal, the remedies are reinstatement, re-engagement, or compensation (a basic award plus a compensatory award, currently capped at the lower of 52 weeks’ pay or £123,785). For discrimination, compensation is uncapped and includes financial loss plus injury to feelings on the Vento bands. For unpaid wages or redundancy, the tribunal can order payment of what is owed. Tribunals can also make declarations and recommendations. The value of a successful claim therefore varies enormously depending on its type — which is why understanding the realistic remedy, and the strength of the claim, is central to deciding whether to pursue it or settle. Our guides to unfair dismissal and discrimination explain the remedies for those claims in detail.

Costs and fees

There are currently no fees to bring or defend an employment tribunal claim. Fees introduced in 2013 were quashed by the Supreme Court in R (UNISON) v Lord Chancellor [2017] UKSC 51, which held that they unlawfully restricted access to justice. Costs orders against the losing party also remain the exception rather than the rule, unlike in the civil courts.

The costs position in the employment tribunal is different from the ordinary courts, and it is important to understand. There is currently no fee to bring or defend a tribunal claim — fees were abolished and a proposal to reintroduce them did not proceed, so access to the tribunal is free. On legal costs, the general rule is that each side bears its own costs, win or lose — unlike the civil courts, the losing party does not normally have to pay the winner’s legal bill. The tribunal can make a costs order, but only in limited circumstances, such as where a party has acted unreasonably or brought a hopeless claim, and such orders are relatively uncommon. This costs regime makes the tribunal more accessible, but it also means each side generally funds its own representation, which is a key factor in deciding whether to litigate or settle.

Settlement and withdrawal

The great majority of tribunal claims settle before a final hearing, and the system encourages this. Settlement can happen through Acas conciliation at any stage, or directly between the parties, usually recorded in an Acas-conciliated agreement (a COT3) or a settlement agreement. Settling gives both sides certainty and avoids the cost, time and risk of a hearing, and it allows terms — such as a reference or confidentiality — that a tribunal could not order. A claimant can also withdraw a claim if they decide not to pursue it. Deciding whether to settle, and on what terms, depends on the strength of the claim, the likely remedy, the costs of continuing, and each side’s appetite for risk. Because so many claims settle, understanding the value of the claim is as important as understanding the procedure.

Appeals

A party who is unhappy with a tribunal’s decision cannot simply re-argue the case. An appeal lies to the Employment Appeal Tribunal (EAT), but only on a point of law — broadly, that the tribunal got the law wrong, reached a decision no reasonable tribunal could have reached, or made a serious procedural error. You generally cannot appeal simply because you disagree with the tribunal’s findings of fact. There is a strict time limit for appealing to the EAT, and further appeals (to the Court of Appeal and beyond) are possible but rare. Appeals are technical and the bar is high, so advice on whether there is a genuine point of law is essential before pursuing one. For most parties, the tribunal’s decision is the end of the road unless a clear legal error can be identified.

Representation at a tribunal

You do not have to be a lawyer, or have one, to bring or defend a tribunal claim — people can and do represent themselves, and the tribunal is designed to be more accessible than the ordinary courts. However, conducting tribunal litigation is a regulated legal activity, and the procedure, evidence and legal arguments can be complex, particularly in discrimination and other higher-value claims. Many parties are represented by solicitors, barristers, or in some cases trade union officials. Hayhills provides commercial and employment advice on the merits and strategy of a claim, and introduces a regulated litigator to conduct the proceedings where representation is needed. Whether to be represented depends on the complexity and value of the claim, but understanding the realistic prospects and the procedure — with advice — puts any party in a far stronger position.

Worked example

An employee believes they were unfairly dismissed. They first notify Acas and go through early conciliation, but no settlement is reached, so Acas issues a certificate. Within the (adjusted) time limit, the employee lodges an ET1; the employer files an ET3 resisting the claim. The tribunal gives case-management directions for disclosure and witness statements, and lists a final hearing. Shortly before the hearing, with both sides facing the cost and risk of litigation, they reach a settlement through Acas, recorded in a COT3, and the claim is withdrawn. The example shows the typical shape of a tribunal claim — conciliation, claim and response, case management — and why so many cases settle before a hearing rather than going the full distance.

How long does an employment tribunal take?

One of the realities of the tribunal system is that it is slow. From lodging a claim to a final hearing typically takes many months, and for more complex cases — particularly multi-day discrimination claims — it can be well over a year, and sometimes considerably longer, depending on the tribunal’s workload and the region. Acas early conciliation adds time at the start, and case management, disclosure and witness-statement exchange all take weeks or months. This timescale matters for both sides: for a claimant, it means waiting a long time for any compensation, and living with the stress and uncertainty of ongoing litigation; for an employer, it means a long-running liability and management distraction. The delay is one of the main reasons so many cases settle — both sides often prefer a quicker, certain outcome to a hearing that may be a year or more away. Anyone considering a claim should factor the likely timescale into their decision.

Preparing for a tribunal: evidence and witnesses

Tribunal cases are won and lost on evidence and preparation. The key materials are the documents — contracts, emails, policies, meeting notes, pay records — which both sides must disclose and which are compiled into an agreed bundle, and the witness statements, in which each witness sets out their account in writing before the hearing. At the hearing, witnesses give their evidence and are cross-examined, so credibility and consistency matter. Good preparation means gathering and organising the relevant documents early, identifying the right witnesses, preparing clear and accurate statements, and thinking through the legal issues the tribunal must decide. A well-prepared case with strong documentary support and credible witnesses is far more likely to succeed than one that relies on assertion. This is also where representation often adds the most value, because marshalling the evidence and arguments effectively is a skilled task.

The risks of litigating

Bringing or defending a tribunal claim carries real risks that should be weighed honestly before committing. The outcome is uncertain — even a strong case can be lost on the evidence or a point of law. The process is slow and stressful, requiring time, document-gathering and the ordeal of giving evidence. The cost of representation generally falls on each side regardless of who wins. And for a claimant, even a successful judgment does not guarantee payment if the employer cannot or will not pay. For an employer, beyond the potential award there is the cost, management time and reputational exposure of a public hearing. None of this means valid claims should not be pursued — but it does mean both sides should go in with a clear, advised view of the strengths, weaknesses, value and risks, and should give genuine consideration to settlement. A realistic assessment is the foundation of a sensible decision about whether to litigate.

A claimant’s tribunal checklist

If you are considering a tribunal claim, work through:

• Identify your claims — unfair dismissal, discrimination, unpaid wages and so on.
• Check the time limit — generally three months less a day — and act well within it.
• Notify Acas for early conciliation and engage with the process.
• Assess the merits and value with advice before committing.
• Gather your evidence — documents, dates, emails and potential witnesses.
• Consider settlement seriously at every stage.
• Prepare your ET1 carefully, as it defines the claim.
• Weigh the time, cost and risk of a hearing against the realistic outcome.

Taking advice early, acting within time and being realistic about the merits are the keys to making good decisions about a tribunal claim.

What we see in practice

In our advisory work, the cases that go wrong for claimants almost always do so on the calendar, not the merits: a missed three-month deadline or an early conciliation step left too late is usually fatal, however strong the underlying complaint. For employers, the most common pattern we see is a thin or late ET3 response that concedes points by omission, and a failure to preserve documents and emails early. Both sides tend to underestimate how much a tribunal turns on contemporaneous records and a clear, consistent narrative rather than oral recollection months later.

Common mistakes to avoid

• Missing the time limit. Generally three months less a day — the most common way a claim is lost.
• Skipping Acas early conciliation. It is a compulsory first step before most claims.
• A poorly drafted ET1 or ET3. These define the claim and defence and shape the whole case.
• Assuming the loser pays costs. Each side usually bears its own costs in the tribunal.
• Overlooking settlement. Most claims settle; understanding the claim’s value is key.
• Appealing without a point of law. The EAT only hears appeals on the law, not the facts.

London employers and employees: a quick note

Employment tribunals operate across the country, and London has several tribunal venues handling a high volume of claims. The procedure is the same everywhere, but London’s higher salaries can make the financial-loss element of awards larger, and the concentration of employers and employees means disputes are common. London cases — particularly higher-value discrimination and senior-executive claims — can be substantial. For both employers and employees in London, the priorities are the same as everywhere: act within the strict time limit, engage with Acas conciliation, prepare the case carefully, and take advice on the merits and the realistic remedy before deciding whether to litigate or settle.

How Hayhills can help

Conducting tribunal litigation is a reserved/regulated activity, so Hayhills does not run the proceedings itself — but it adds significant value around them. We help employees assess the strength and value of a potential claim, navigate Acas conciliation, and decide whether to claim, settle or withdraw; and we help employers evaluate a claim, manage the risk, prepare to respond, and pursue settlement where sensible. Where the matter proceeds, we work alongside and introduce a regulated litigator to conduct the tribunal case, so you get joined-up commercial and specialist advice. Our guides to unfair dismissal, discrimination and settlement agreements cover the most common tribunal claims. Explore our employment advisory service or speak to Hayhills today.

This article is for general information only and does not constitute legal or accountancy advice. Hayhills Limited, trading as Hayhills Legal Advisory, provides non-reserved legal advisory services. Always check current requirements at GOV.UK.

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