Extension of time limits: creeping clarity
The Employment Rights Act 2025 (“ERA”) will extend the time limits for most employment claims from three to six months. Existing rules around the impact of mandatory ACAS early conciliation (which effectively stops the clock) are unaffected. Up until now, the implementation timing of this change has been unclear, with government guidance stating only that the change would take effect “no earlier than October 2026”.
While we are still awaiting the relevant ERA commencement regulations and the government has not updated its implementation timeline, we are now getting some more clarity – albeit by the back door. The ERA itself lists a number of claims for which it will be extending time. That list, however, is not an exhaustive list of all employment claims. The government has now published separate secondary legislation that will extend time limits from three to six months for various employment claims not included on the ERA’s list. These changes will be taking effect – drumroll, please – on 1 October 2026, giving us a pretty heavy hint that we can expect the wider extension of time limits (including for the claims listed in the ERA) to take effect on that date.
We expect the change (in relation to all claims) to be effective for causes of action arising on or after 1 October 2026, rather than for claims presented after that date. In other words, the applicable time limit will be determined by reference to when the thing complained of (or, if a series of things, the last thing in the series) happened, not when the claim was commenced. So, for example, if “Alfie” is dismissed on 30 September 2026 and wishes to challenge that dismissal as unfair, his claim will be subject to a three-month time limit – even if he brings the claim after 1 October 2026. If, however, Alfie is dismissed on 1 October 2026, the time limit will be six months. We do not, therefore, expect the change in time limits to resurrect claims that, as of 30 September 2026, are out of time.
There is nothing you need to do to prepare, and the full impact of the change remains to be seen. While some commentators suggest that the change will provide more breathing space for settlement discussions, we anticipate a potential increase in claims, as employees have longer to consider their position and take advice after an issue has been raised. Anything likely to drive up claims (and this is one of several such changes under the ERA) will put further pressure on an already struggling Tribunal system. We should therefore brace for even greater delays in claims being processed.
How we can help
Our Employment team is closely tracking the extension of employment tribunal time limits under the Employment Rights Act 2025 and what it means for employers. We support clients in adapting their approach to workplace disputes, helping to manage risk and navigate claims efficiently. Contact us to discuss how these changes may affect your organisation.
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