Employment Tribunal: A Complete Guide for UK Employers and Employees

Employment tribunals are specialist courts that hear disputes between workers and employers in Great Britain. Whether you face a claim for unfair dismissal, discrimination, or unpaid wages — or you are bringing one — understanding the process from ACAS Early Conciliation through to enforcement can make a significant difference to the outcome.

1. What is an Employment Tribunal?

An employment tribunal (ET) is an independent judicial body that resolves employment disputes. It sits within the employment justice system in England, Wales, and Scotland (Northern Ireland has a separate system). Employment tribunals are distinct from the civil courts: they exist specifically for workplace disputes and apply employment law rather than contract law in the ordinary sense, although the two often overlap.

Employment tribunals have jurisdiction over a wide range of claims, including unfair dismissal, wrongful dismissal, discrimination under the Equality Act 2010, unlawful deductions from wages, whistleblowing detriment, and breach of TUPE obligations. They cannot hear personal injury claims or disputes about the existence of a contract — those remain in the civil courts.

ACAS Early Conciliation is a mandatory prerequisite before any employment tribunal claim can be submitted. ACAS is an independent public body; its conciliation service is free and aims to help parties reach settlement without a hearing.

2. Common Claims

The most frequently brought employment tribunal claims include:

• Unfair dismissal— requires two years' continuous employment (with exceptions for automatically unfair dismissals such as whistleblowing or pregnancy)
• Discrimination — no qualifying period; covers the nine protected characteristics under the Equality Act 2010 (age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation)
• Wrongful dismissal — a breach of contract claim, typically for pay in lieu of notice not provided; can also be brought in the civil courts
• Unlawful deduction from wages — unpaid wages, holiday pay, or commission; no qualifying period
• TUPE — failure to inform and consult, or automatic unfair dismissal connected with a business transfer
• Whistleblowing (protected disclosure) — automatic unfair dismissal and detriment; no qualifying period; compensation uncapped

3. ACAS Early Conciliation

Before submitting an ET1 claim form, you must notify ACAS and go through Early Conciliation (EC). This process is:

• Free — no charge to either party
• Confidential — communications during EC are without prejudice
• Time-limited — the conciliation period is up to six weeks (one month initially, extendable by up to 14 days)

During EC, an ACAS conciliator will contact both parties and attempt to facilitate a settlement. If settlement is reached, it is recorded in a COT3 agreement — a legally binding document signed by both parties that prevents the claimant from pursuing the same claim again. If conciliation fails or either party declines to engage, ACAS issues an Early Conciliation certificate with a unique reference number. This number must be included on the ET1 form.

The time limit for bringing a tribunal claim is paused from the day you notify ACAS until the day the EC certificate is issued. This pause (known as 'tolling') means you do not lose time while conciliation is ongoing.

4. Submitting a Claim

Employment tribunal claims are submitted on the ET1 form, available on the GOV.UK website. Claims can be submitted online, by post, or in person at a tribunal office.

Key points when submitting:

• Time limit: three months minus one day from the date of dismissal or the last discriminatory act. This is strict — missing the deadline almost always results in the claim being rejected, unless the tribunal accepts it was not reasonably practicable to submit in time.
• The Early Conciliation reference number from ACAS must be included
• You must clearly identify the type of claim (unfair dismissal, discrimination, etc.) and the remedy sought
• There is no fee to submit an ET1 following the 2017 Supreme Court ruling in Unison v Lord Chancellor

Once submitted, the tribunal sends a copy of the ET1 to the respondent (usually the employer) within a few days.

5. The Respondent's Response

The employer (or other respondent) must reply using the ET3 form within 28 daysof receiving the ET1. The ET3 sets out the employer's grounds for contesting the claim.

If the ET3 is not submitted in time and no extension is granted, the tribunal may issue a default judgment in favour of the claimant without a hearing. Extensions to the 28-day deadline are possible but not automatic — the respondent must apply to the tribunal and show good reason for the delay.

The ET3 should address every allegation in the ET1 and clearly state whether the employer admits or denies each claim. A weak or vague ET3 makes the employer's position harder to defend at hearing.

6. Case Management Orders

After both forms are submitted, the tribunal will issue case management orders to prepare the case for hearing. These typically include:

• Disclosure — each party must disclose documents relevant to the claim (including documents that help the other side)
• Witness statements — prepared in advance and usually exchanged simultaneously; witnesses adopt their statements as evidence and are then cross-examined
• Agreed bundle — a paginated bundle of all documents for the hearing
• Preliminary hearings — used to determine jurisdiction (e.g. whether the claimant has qualifying service), strike out weak claims, or give case management directions

Full merits hearings in straightforward unfair dismissal cases are typically listed for one to two days. Complex discrimination cases may last five days or more. Waiting times vary by region but can be 12–24 months from claim submission to a final hearing in some areas.

7. Costs and Legal Representation

Employment tribunals operate on a 'no costs' principle: unlike civil courts, each party generally bears its own legal costs regardless of outcome. However, the tribunal can award costs (up to £20,000 summarily, or unlimited if referred to costs assessment) where a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably. Costs orders are made in fewer than 1% of cases.

Legal representation options include:

• No-win-no-fee solicitors (conditional fee agreements) — increasingly common for discrimination and whistleblowing claims
• Trade union representation — often free to members
• McKenzie friend — a lay person who can provide quiet assistance and take notes but cannot address the tribunal
• Litigants in person — representing yourself; tribunals make reasonable allowances

An appeal from an employment tribunal goes to the Employment Appeal Tribunal (EAT), which hears appeals on points of law only (not findings of fact). EAT appeals must be lodged within 42 days of the judgment being sent to the parties.

8. Settlement vs Hearing

Statistics show that approximately 70% of employment tribunal claims settle before reaching a final hearing. Settlement can occur at any stage, including during ACAS conciliation, via COT3, at a judicial mediation session, or simply by negotiation between the parties or their legal representatives.

Settlement agreements (previously called compromise agreements) are binding contracts under s.203 ERA 1996 whereby the employee waives their right to bring specified claims. For a settlement agreement to be valid:

• It must be in writing
• It must relate to a particular complaint or proceedings
• The employee must have received independent legal advice on its terms and effect
• The adviser must be identified and insured

The employer typically pays the claimant's legal fees for reviewing the agreement (usually £300–£500 plus VAT).

9. Compensation Limits

Compensation in employment tribunals consists of:

• Basic award (unfair dismissal): calculated using a statutory formula (age × weekly pay × years of service, subject to caps). Maximum £21,000 from April 2024.
• Compensatory award(unfair dismissal): compensates for actual financial loss. Capped at the lower of £115,115 or 52 weeks' gross pay (2024/25 figures, updated annually in April).
• Discrimination compensation: uncapped. Includes financial loss, injury to feelings (Vento bands: £1,100–£58,700 for most cases), and personal injury in some cases.
• Whistleblowing: uncapped, plus interim relief is available (immediate reinstatement or continuation of employment pending hearing).

Compensation can be reduced if the claimant contributed to their own dismissal, failed to mitigate their loss (e.g. by not seeking new employment), or breached Acas Code procedures (which can also increase awards by up to 25% against employers who fail to follow the Code).

10. After the Tribunal

If the claimant wins and the respondent does not pay voluntarily, enforcement is through the civil courts — not the tribunal itself. The claimant must apply to the county court (or High Court for large sums) to enforce the judgment as a civil debt. HMRC also operates a naming and shaming scheme for employers who fail to pay tribunal awards.

Appeals against a tribunal judgment on a point of law are made to the Employment Appeal Tribunal within 42 days of the written judgment being sent. Appeals on facts alone are not permitted. From the EAT, further appeal is to the Court of Appeal and ultimately the Supreme Court.

In exceptional cases involving public law issues (such as the lawfulness of tribunal rules themselves), judicial review in the Administrative Court may be available, though this route is rarely appropriate for individual employment disputes.

Key facts at a glance