Types of disputes heard by employment tribunals & tribunal processes
Unfair dismissal tribunal process
Claims for unfair dismissal arise where an employee alleges dismissal without a fair reason or without following a fair process. Employees usually need at least two years’ continuous service, except in cases of automatic unfair dismissal (e.g. whistleblowing, discrimination).
The claimant must submit an ET1 claim form within three months less one day of the dismissal date, with the time limit paused during Acas Early Conciliation .
The employer receives a response pack and must submit an ET3 form within 28 days. Failure to respond can result in a default judgment.
Preliminary hearings may be held to clarify issues, set timetables, or address jurisdictional questions. Both parties must disclose relevant documents and exchange witness statements.
At the final hearing, evidence is presented, witnesses are cross-examined, and legal submissions are made. The tribunal may order reinstatement, re-engagement, or compensation (basic and compensatory awards; as of April 2025, the basic award is capped at £21,570 and the compensatory award at £118,223 or 52 weeks’ gross pay, whichever is lower).
Either party can request reconsideration within 14 days or appeal to the Employment Appeal Tribunal on a point of law.
Wrongful dismissal tribunal process
Wrongful dismissal is a contractual claim, typically for failure to provide proper notice or payment in lieu. It does not require a minimum period of service.
Claims must be submitted within three months of the dismissal date to the tribunal (or within six years in civil courts). The tribunal’s jurisdiction is capped at £25,000 for breach of contract claims.
The process mirrors that of unfair dismissal: Acas Early Conciliation, ET1 submission, ET3 response, document disclosure, and hearings. Remedies are limited to damages for losses arising from the breach (e.g. unpaid notice pay).
There is no basic or compensatory award; only actual financial loss is recoverable.
Discrimination tribunal process
Discrimination claims cover protected characteristics under the Equality Act 2010 (e.g. race, sex, disability, age). There is no minimum service requirement.
Claims must be made within three months of the discriminatory act, with the time limit paused for Acas Early Conciliation.
The process involves ET1 and ET3 forms, preliminary hearings (often to determine disability status or strike out weak claims), and full disclosure of evidence.
Compensation is uncapped and may include financial loss, injury to feelings (using Vento bands), and aggravated damages. The upper Vento band for serious cases is £29,600 to £49,300 (2025/26).
Remedies can include recommendations to prevent further discrimination, as well as reinstatement or re-engagement.
Equal pay tribunal process
Equal pay claims arise where an employee believes they have not received equal pay for equal work compared to a comparator of the opposite sex, under the Equality Act 2010.
Claims must be submitted within six months of the end of employment for tribunal claims, with Acas Early Conciliation required beforehand.
The process includes ET1 and ET3, preliminary hearings (often to clarify comparators and job equivalence), and full hearings with evidence on pay structures and job roles.
Remedies include arrears of pay (up to six years), interest, and recommendations for pay adjustments. Compensation is not capped.
Working Time Regulations tribunal process
Claims under the Working Time Regulations 1998 include issues such as unpaid holiday pay, failure to provide rest breaks, or exceeding maximum working hours.
Claims must be lodged within three months of the breach, with Acas Early Conciliation as a prerequisite.
The process follows the standard ET1/ET3 procedure, with document disclosure and hearings. The tribunal can award compensation for financial loss and order compliance with statutory rights.
Claims for unpaid holiday pay are common and may overlap with unauthorised deductions from wages.
Unauthorised deductions from wages tribunal process
Employees can claim for unauthorised deductions from wages under the Employment Rights Act 1996. Claims must be made within three months of the deduction, with Acas Early Conciliation required.
The ET1/ET3 process applies, with both parties required to disclose relevant pay records and contracts. The tribunal can order repayment of the deducted sums and, in some cases, compensation for additional loss.
Claims are limited to two years’ arrears for most deductions, except for certain statutory payments (e.g. SSP, SMP).
Redundancy pay or failure to inform and consult tribunal process
Claims for statutory redundancy pay arise where an employee believes they have not received the correct payment following redundancy. Claims for failure to inform and consult apply where an employer has not followed collective consultation requirements.
Redundancy pay claims must be made within six months of dismissal; failure to inform and consult claims must be made within three months.
The process includes Acas Early Conciliation, ET1/ET3, and hearings. For failure to consult, the tribunal may award a protective award of up to 90 days’ pay per affected employee.
Remedies for redundancy pay include payment of the statutory amount owed, calculated based on age, length of service, and weekly pay (subject to statutory caps).
All tribunal processes require strict adherence to time limits, full engagement with Acas Early Conciliation, and careful preparation of evidence and witness statements. Legal risks include potential cost orders for unreasonable conduct, reputational damage, and, in some cases, unlimited compensation awards (notably in discrimination and equal pay claims).
Initiating and responding to tribunal claims
When to take an employment dispute to tribunal
Employment tribunals are intended as a last resort for resolving workplace disputes. Before initiating a claim, parties should attempt to resolve issues internally through grievance or disciplinary procedures, or by engaging with Acas Early Conciliation. Typical claims suitable for tribunal include unfair dismissal, discrimination, breach of contract, and unauthorised deductions from pay. Litigation should be considered if internal processes and conciliation have failed, or where urgent interim relief is required (e.g. whistleblowing dismissals).
Strict time limits apply: most claims must be submitted within three months less one day from the date of dismissal or the incident. The time limit is paused during Acas Early Conciliation, resuming once the certificate is issued. Claims outside these limits are rarely accepted unless exceptional circumstances exist. Employers should also monitor potential claims and maintain robust processes for handling disputes promptly to mitigate risk.
Filing a claim to an employment tribunal
Before filing, claimants must notify Acas and participate in Early Conciliation, unless exempt. Acas will attempt to facilitate a settlement within a six-week period. If conciliation fails or is declined, Acas issues an Early Conciliation Certificate, which is required to proceed. The claim is then submitted using the ET1 form, either online or by post, including all relevant details and the certificate number. Claims must be filed within the statutory time limit, factoring in any pause during conciliation. There is no fee for submitting a claim, but claimants may be liable for costs if they act unreasonably.
Claimants should gather all relevant documentation and evidence before filing, as the ET1 form is the foundation of the case. If reasonable adjustments are needed for disability or health reasons, these should be requested at the outset. Legal advice is recommended to ensure the claim is properly framed and supported.
Starting and responding to a tribunal claim
Once a claim is accepted, the tribunal sends a response pack (including the ET1 and particulars) to the respondent. The respondent must complete and return the ET3 response form within 28 days of the date the response pack was sent, not the date received. Failure to respond on time can result in a default judgment against the respondent. Extensions may be requested in writing before the deadline, but are granted only for good reason. The response should address all allegations, include grounds of resistance, and be supported by relevant documentation.
Both parties are required to disclose all documents relevant to the dispute, including those that may be unfavourable to their case. The tribunal will set a timetable for exchanging documents and witness statements. Witnesses who can provide direct evidence should be identified early, and arrangements made for their attendance. If a witness is reluctant, a tribunal order can be sought to compel attendance. All parties must comply with tribunal directions and deadlines to avoid sanctions, including possible cost orders or strike-out of claims or responses.
Tribunal hearings and outcomes
Hearings may be held in person, by phone, or by video. Preliminary hearings are used to clarify issues, set case management directions, and address jurisdictional or procedural matters. Final hearings involve both parties presenting evidence and arguments. The tribunal’s decision is usually sent in writing, and may include orders for compensation, reinstatement, or other remedies. There are statutory caps on compensation for most claims, but no cap in discrimination cases. Either party may request reconsideration of the decision within 14 days or appeal to the Employment Appeal Tribunal on a point of law.
Tribunal decisions are published and may have reputational consequences. Costs are generally not awarded except in cases of unreasonable conduct. Parties should keep comprehensive records and seek legal advice throughout the process to ensure compliance and best protect their interests.
The role of ACAS in employment disputes
ACAS (Advisory, Conciliation and Arbitration Service) provides impartial advice, support, and dispute resolution services to employers, employees, and their representatives, aiming to resolve workplace disagreements at the earliest stage possible and avoid escalation to employment tribunal claims. ACAS offers helpline advice, early conciliation, collective conciliation, mediation, and arbitration, as well as training and tailored support to improve employment relations and prevent future disputes. Its statutory powers enable it to act as a neutral third party, facilitating dialogue and resolution without taking sides or imposing outcomes, except where arbitration is used and a binding decision is required.
Attempting to settle a tribunal claim through ACAS
Settlement of tribunal claims through ACAS is primarily achieved via conciliation, either before (early conciliation) or after a claim is lodged (post-claim conciliation). ACAS conciliators act as intermediaries, helping parties explore settlement options, clarify legal issues, and negotiate terms. If an agreement is reached, it is formalised in a legally binding COT3 agreement, preventing further claims on the same issue. ACAS can continue to facilitate settlement discussions up to and during tribunal proceedings, maintaining confidentiality throughout.
The ACAS early conciliation process
Early conciliation is a mandatory pre-tribunal process: before submitting most employment tribunal claims, the claimant must notify ACAS. The process involves the following steps:
The claimant submits an online notification to ACAS, triggering an initial assessment by a conciliator who explains the process and gathers information.
The conciliator contacts the employer to seek their willingness to participate; if both parties agree, the conciliator facilitates confidential negotiations for up to six weeks.
The conciliator remains impartial, does not advise on settlement terms, and ensures both parties understand the law and tribunal procedures.
If a settlement is reached, it is recorded in a COT3 agreement; if not, ACAS issues an Early Conciliation Certificate, enabling the claimant to proceed to tribunal.
The ACAS collective conciliation process
Collective conciliation is used to resolve disputes between an employer and a group of employees, often represented by a trade union. Either party can request ACAS involvement, regardless of whether a collective agreement requires it. ACAS conciliators facilitate negotiations, help clarify issues, and support the parties in reaching a mutually acceptable resolution, particularly where there is a risk of industrial action. The process is voluntary, confidential, and can be used to develop long-term partnership agreements to prevent future disputes.
Setting up an ACAS mediation scheme
ACAS mediation is a voluntary, confidential process in which a neutral mediator helps parties resolve workplace disputes, typically involving interpersonal conflict or grievances. To set up a mediation scheme:
Contact ACAS to discuss your organisation’s needs and access mediation services or training for internal mediators.
ACAS can provide either external mediators or support in establishing an internal mediation framework.
Mediation is most effective for disputes where ongoing working relationships are important and can be used alongside or instead of formal grievance procedures.
How ACAS arbitration works
Arbitration is a process where a neutral third party (the arbitrator) hears both sides of a dispute and makes a binding decision. ACAS offers arbitration primarily for collective disputes (e.g., pay, terms and conditions) and for specific statutory claims such as flexible working applications. The process is quicker, more informal, and private compared to tribunal proceedings. Both parties must agree to use arbitration, and the arbitrator’s decision is final and enforceable. Arbitration is particularly suitable where parties seek a definitive resolution without public tribunal hearings.
Using collective arbitration
Collective arbitration is available when collective conciliation fails to resolve a dispute between an employer and a group of employees. Both parties must consent to refer the matter to ACAS arbitration. An independent arbitrator hears the case and issues a binding decision, which both sides must accept. This process is confidential and designed to resolve issues efficiently, avoiding industrial action and lengthy litigation.
Preparing for and participating in a tribunal
Preparing for an employment tribunal
Employers should begin by gathering all relevant documents, such as contracts of employment, pay slips, meeting notes, and correspondence, as soon as a claim is anticipated or received. It is essential to diarise all tribunal deadlines, especially the 28-day period for submitting the ET3 response form, and to ensure that all procedural steps are followed strictly to avoid default judgment. Early engagement with ACAS through the Early Conciliation process is mandatory and may provide an opportunity to resolve the dispute before litigation proceeds. Employers should also assess the merits of the claim, consider settlement options, and allocate sufficient management time to comply with tribunal orders and prepare the defence.
Types of tribunal hearings and preparation
Tribunal hearings may include preliminary hearings (to address case management, clarify issues, or determine jurisdictional points) and final hearings (where the substantive claim is determined). Preliminary hearings are often conducted remotely and focus on setting timetables for document disclosure, witness statements, and other procedural matters. For final hearings, employers must ensure all evidence and witness statements are ready and that all directions from the tribunal are met. Preparation should include reviewing the case management order, confirming witness availability, and ensuring that all documents are exchanged and bundled as required by the tribunal.
The tribunal hearing: process and outcomes
At the hearing, both parties present their cases, supported by documentary evidence and witness testimony. The tribunal panel may consist of a judge alone or a judge with two lay members, depending on the complexity of the case. Witnesses are examined, cross-examined, and may be re-examined, with the tribunal panel also able to ask questions. After closing submissions, the tribunal will deliver its decision either at the end of the hearing or in writing within a few weeks. If the employer loses, remedies may include compensation, reinstatement, or payment of costs in limited circumstances. If successful, employers may apply for costs if the claimant acted unreasonably, though such awards are rare.
Preparing a witness for an employment tribunal
Witnesses should be briefed on the process, the importance of giving truthful and clear evidence, and the structure of questioning (examination-in-chief, cross-examination, and re-examination). Witnesses must review their statements and relevant documents in advance, and should be reminded not to discuss their evidence with others during breaks if they are still under oath. It is advisable for witnesses to observe a hearing beforehand if possible, and to be familiar with the tribunal’s expectations for remote or in-person attendance. If a witness is reluctant to attend, employers can apply for a tribunal order compelling attendance, providing details of the relevance of their evidence.
Handling a counterclaim in breach of contract cases
If an employee brings a breach of contract claim, employers may submit a counterclaim for breach of contract within the ET3 response form. The counterclaim must relate to the employment contract and not exceed the tribunal’s £25,000 jurisdictional cap. Employers should set out the factual and legal basis for the counterclaim, provide supporting evidence, and ensure the counterclaim is clearly identified in the response. Both the original claim and the counterclaim will be considered at the hearing, and the tribunal may make orders for or against either party as appropriate.
Costs, outcomes, and appeals
Costs associated with bringing a claim to an employment tribunal
There are no fees for submitting or responding to an employment tribunal claim; both claimants and respondents can access the process without paying court fees. However, parties must cover their own legal representation, witness expenses, and any expert reports required, which can be substantial depending on case complexity. Legal fees for employers often start from £10,000 and may exceed £50,000 in complex discrimination or whistleblowing cases, while claimants may incur similar costs if they instruct solicitors or barristers, but many represent themselves to minimise expenses.
Each party usually bears its own legal costs, regardless of the outcome. The tribunal may order one party to pay the other's costs only in exceptional circumstances, such as where a party has acted vexatiously, abusively, disruptively, or unreasonably, or where a claim or defence has no reasonable prospect of success. Cost awards are rare and typically capped at £20,000 unless a detailed assessment is ordered, in which case the amount may be higher but is still subject to the tribunal’s discretion and the paying party’s means.
Indirect costs include management and HR time spent preparing for the case, gathering evidence, and attending hearings, as well as potential reputational damage and operational disruption. These can have a significant impact on business productivity and morale, especially if the case is high-profile or prolonged.
Compensation awards, if the claimant is successful, vary by claim type. For unfair dismissal, the basic award is capped at £21,570 and the compensatory award at £118,223 or 52 weeks’ gross pay, whichever is lower, for the 2025/26 tax year. Discrimination claims have no upper cap, and injury to feelings in such cases is assessed using the Vento bands, with the upper band for serious cases ranging from £29,600 to £49,300.
There is no reimbursement for travel or attendance expenses for parties, but witness expenses may be recoverable if ordered by the tribunal. Claimants and respondents are responsible for their own costs unless a specific order is made.
Outcomes of employment tribunal claims
If the claimant wins, the tribunal can order the employer to pay compensation, reinstate the claimant, or take steps to reduce the effects of discrimination. Compensation is typically based on financial loss, with statutory caps for certain claims and uncapped awards for discrimination. Interest may be added if compensation is not paid within 14 days of the judgment.
If the respondent wins, they are not usually awarded compensation or costs unless the claimant has acted unreasonably or the claim was without merit. Applications for costs must be made to the tribunal, which applies a two-stage test: first, whether the conduct meets the threshold for costs, and second, whether it is just to make an award in all the circumstances.
Tribunal decisions are published online and are public records, which may have reputational implications for both parties. Non-payment of awards can result in enforcement action, fines, and public naming by the government.
Appealing an employment tribunal decision
Either party can request the tribunal to reconsider its decision within 14 days of receiving the written judgment. Grounds for reconsideration include procedural errors, not being notified of the hearing, or new evidence coming to light. The request must be made in writing to the tribunal office that dealt with the case, stating the reasons for reconsideration.
Appeals to the Employment Appeal Tribunal (EAT) are possible if a party believes there has been a legal error in the tribunal’s decision. Appeals must be lodged within 42 days of the written judgment and should focus on points of law, not simply disagreement with the outcome. The EAT may uphold, overturn, or remit the case for a new hearing.
It is essential to act promptly and seek legal advice when considering an appeal, as strict time limits and procedural requirements apply. Failure to comply may result in the appeal being dismissed without consideration.
Settlement of claims: settlement agreements, ACAS, and COT3 agreements
Settlement can be reached at any stage, including before a claim is lodged or during tribunal proceedings. The most common routes are through ACAS Early Conciliation, which is mandatory before most claims, or via private negotiation between the parties.
ACAS Early Conciliation offers a confidential process to resolve disputes without a hearing. If an agreement is reached, it is recorded in a COT3 agreement, which is legally binding and prevents further claims on the same matter. COT3 agreements can include confidentiality and non-derogatory clauses to protect the employer’s interests.
Settlement agreements (formerly compromise agreements) are private contracts, usually involving a payment to the employee in exchange for waiving the right to bring or continue employment claims. These must be in writing, specify the claims being settled, and the employee must receive independent legal advice for the agreement to be valid. Settlement amounts typically range from £5,000 to £30,000, depending on the strength and nature of the claim.
Early settlement is often the most cost-effective solution, reducing legal fees, management time, and reputational risk. Engaging in ACAS conciliation or negotiating a settlement agreement can provide certainty and closure for both parties, with terms tailored to include confidentiality and future claims waivers.
