Employment Tribunal – Employer Guidance

An Employment Tribunal is an independent judicial body that resolves workplace disputes between employees (and some workers) and employers. Tribunal claims can arise from issues such as unfair dismissal, discrimination, breach of contract, redundancy pay disputes and other employment rights claims.

Employers must understand how the Employment Tribunal process works, key deadlines, and effective strategies for defending claims to reduce financial and reputational risk.

Key Points for Employers – Tribunal Claims

Employers should be aware that:

  • most claims must be notified to ACAS Early Conciliation before a claim can be issued
  • there are strict time limits for lodging claims
  • evidence, records and process fairness are critical to defence
  • tribunals assess both law and fairness
  • remedies can include compensation, reinstatement and financial penalties

Understanding the process reduces risk and supports better case outcomes.

What is an Employment Tribunal?

An Employment Tribunal is a specialist court that hears disputes under UK employment law. Tribunals consider evidence from both sides, apply statutory and case law, and make legally binding decisions.

Tribunals are less formal than the civil courts but decisions are final and enforceable. Employers should take claims seriously at every stage.

Common Types of Tribunal Claims

Tribunals hear a wide range of employment disputes, including:

  • Unfair dismissal
  • Discrimination and harassment
  • Redundancy and protective awards
  • Wage and holiday pay disputes
  • Constructive dismissal claims
  • Equal pay claims
  • Breach of contract
  • Whistleblowing detriment claims

Each type of claim has its own legal requirements and potential defences.

ACAS Early Conciliation – The First Step

Before most claims can be lodged with the tribunal, the claimant must notify ACAS Early Conciliation. A conciliation certificate is issued at the end of the process and is required before a tribunal claim can be accepted.

Employers should engage promptly and constructively with Early Conciliation to explore settlement and reduce the likelihood of costly litigation. More information on Early Conciliation can be found here.

Time Limits for Tribunal Claims

Strict time limits apply. In most cases, claims must be lodged within:

  • three months less one day from the event complained of (e.g., dismissal date)
  • or any extended period agreed through Early Conciliation

Failure to meet time limits can lead to a claim being rejected unless there are exceptional circumstances.

The Tribunal Process – Step by Step

1. Claim Issued

The claimant submits a claim form (ET1). Employers receive a response form (ET3), usually with a deadline to respond.

2. Response and Case Management

Employers must complete the ET3 response form, setting out:

  • whether the claim is admitted or defended
  • the grounds of defence
  • any counterclaims or preliminary objections

The tribunal may hold a case management hearing to set directions, a timetable and identify key issues.

3. Disclosure and Witness Statements

Both parties exchange:

  • relevant documents
  • witness statements (unless the tribunal directs otherwise)

Good preparation and complete disclosure supports credibility and defence.

4. Pre-Hearing Review (if directed)

Tribunals may hold a pre-hearing review to deal with procedural or legal issues before the final hearing.

5. Final Hearing

At the hearing:

  • evidence is tested
  • witnesses are examined and cross-examined
  • legal arguments are heard
  • the tribunal makes findings of fact and law

Employers should be represented by legal counsel or experienced advocates.

6. Judgment and Remedies

After the hearing, the tribunal will issue a decision with remedies where a claim is upheld.

Common Employer Defences

Defending tribunal claims requires both legal and practical strategies:

Unfair Dismissal

  • demonstrate a fair reason for dismissal
  • show that a reasonable employer would have acted similarly
  • evidence of a fair, documented process is critical

Discrimination

  • show decisions were objective and not related to a protected characteristic
  • articulate legitimate business reasons
  • show reasonable adjustments were considered for disabled employees

Redundancy Disputes

  • demonstrate a genuine redundancy situation
  • evidence meaningful consultation
  • show fair, non-discriminatory selection criteria

Breach of Contract

  • prove that contract terms were followed or any variation was agreed

Early legal risk assessment strengthens response.

Remedies and Awards

If a claim succeeds, the tribunal may award:

  • Compensation (basic and compensatory)
  • Reinstatement or re-engagement in limited cases
  • Protective awards for consultation failures
  • Injury to feelings in discrimination cases
  • Interest and costs in limited circumstances

Compensation may be uncapped in certain categories, particularly discrimination claims.

Costs and Budgeting for Tribunal Claims

There is generally no automatic costs order against losing parties in UK employment tribunals. However, tribunals can award costs in exceptional circumstances, such as unreasonable behaviour.

Employers should budget for:

  • legal representation
  • preparation time
  • potential settlement negotiations
  • compensation awards

Early settlement discussions, including through ACAS, can help manage costs.

Tips for Employers Facing a Tribunal Claim

To improve outcomes and minimise risk:

  • Seek early legal advice upon receipt of ET1 or ACAS notice
  • Respond accurately and on time to tribunal deadlines
  • Preserve and organise documents and communications
  • Prepare credible witness statements and evidence bundles
  • Consider Early Conciliation settlement options
  • Ensure representation at hearings

How We Support Employers

Employment tribunal claims can be complex, stressful and costly. Our solicitors assist employers with:

  • early strategic advice and risk assessment
  • reviewing case strengths and weaknesses
  • drafting ET3 responses and legal arguments
  • representation at hearings and settlement negotiations
  • post-judgment remedies and compliance