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Employment tribunals

Overview

Key points

  • Employment tribunals have jurisdiction to hear more than 80 types of statutory employment-related claims. Certain types of claims are specifically excluded from the tribunal's jurisdiction, such as those relating to restraint of trade, breach of confidentiality or personal injury.
  • In the majority of cases the time limit for starting proceedings in the employment tribunal (ET) is three months from the date of the act complained of, or where dismissal is involved, three months from the effective date of termination (EDT).
  • Since May 2014 anyone wanting to bring a claim has had to engage with Acas in the first instance through an early conciliation process.
  • The procedure for bringing a claim to tribunal requires the aggrieved person (the claimant) to lodge a complaint on the prescribed ET1 form, setting out particulars of the act(s) complained of. Fees to issue a tribunal claim were introduced on 29 July 2013, but these were ruled unlawful on 26 July 2017, and the Fees Order introducing them quashed, by the Supreme Court in the case R(Unison) v the Lord Chancellor.
  • At the tribunal, an employment judge reviews the initial paperwork. The judge can dismiss a claim or employer's response where it has no reasonable prospects of success. A claim or a defence can be struck out at any time if it is scandalous, misconceived or vexatious, or if the conduct of the case has been scandalous, unreasonable or vexatious.
  • An employment tribunal can require the attendance of any witness including a party to proceedings. Parties are encouraged to prepare and exchange witness statements in advance.
  • Claimants or respondents failing to appear at the tribunal hearing without giving any notice to the tribunal may result in the case being dismissed or a judgment being given in favour of the party in attendance.
  • There is a right of appeal to the Employment Appeal Tribunal (EAT) from a decision of the employment tribunal on a point of law only. An appeal cannot be lodged just because one of the parties is not happy with the tribunal's decision. An EAT's decision can be the subject of a further appeal to the Court of Appeal (England) or the Court of Session (Scotland), and ultimately to the Supreme Court and the Court of Justice of the European Union.

Recent developments

Government response to Matthew Taylor review

During 2017, Matthew Taylor published a review which, amongst other things, suggested that enforcement should be carried out against organisations who failed to pay tribunal awards or ignored previous rulings. The government stated they would respond to the review by the end of 2017, although this was delayed to the beginning of 2018.

The government has now released their response to the Taylor report and have announced they will introduce a 'naming and shaming' scheme for employers to employers who fail to pay a tribunal award within a reasonable time. They will also look at taking action against organisations who ignore tribunal decisions and recommendations. A consultation will be carried out and no time frame for the commencement of these has been announced.

April 2018 increase to tribunal awards

The Employment Rights (Increase of Limits) Order 2018 sets out the increased limits for tribunal awards which will take effect from 6 April 2018.

The limit on a week’s pay for calculating the unfair dismissal basic award will increase to £508 meaning the maximum basic award will increase to £15,240, up from £14,670.

The maximum compensatory award for unfair dismissal will also increase to £83,682 or a year’s pay, whichever is lower.

These new limits will apply for any dismissals where the effective date of termination is on, or after, the 6 April 2018. Any dismissals prior to this date will apply the previous compensation limits - see our ‘Statutory rates’ page for an overview of the rate changes.