Employment Tribunal time limits could be extended under new Law Commission proposals

On 29^th April 2020 the Law Commission submitted a series of proposals which include extending the time limit for individuals to be able to bring a claim from the current three months to six months in all cases and also made a number of other key recommendations.  Howard Robson, Employment Partner, reviews the proposals set out by the Law Commission and examines the impact this could have for both claimants and businesses in the future.

Extension of time limits

Under current Employment Law, most claims to the Employment Tribunal must be made within a strict time limitation of 3 months less 1 day from dismissal (or an act of discrimination) and then only once ACAS compulsory early conciliation has been completed. That process ‘pauses’ the ‘limitation clock’ during the conciliation period of up to 6 weeks.  

Employment time limits were originally implemented to facilitate the  swift resolution of workplace disputes. However with the development of Employment Law over the last 56 years, this is now no longer appropriate with some claims taking 12 to 18 months to reach trial. The Law Commission is suggesting that limits be extended to six months for all types of claims including unfair dismissal. 

As well as extending the time limit, the proposals also suggest that tribunals be permitted to extend time limits in all cases where it may be considered “just and equitable” to do so.  This differs from the current position which allows extensions for unfair dismissal cases only where it is “not reasonably practicable” to meet the limitation date; something very rarely granted.

Howard explains, “This extension could be particularly useful for those in more senior roles who tend to bring more complex cases, such as whistleblowing claims, and for those pursuing discrimination cases.  In claims of this nature, the evidence may be complex and having a short time limit can be a barrier to justice for some.  Both employers and employees can struggle in this situation to carry out the proper investigations which can lead to more meaningful discussions towards resolution. It’s also the cases that some claimants are simply unaware of the short limitation and realise only when the date has already expired. It is then just too late”.

Additional proposals made by the Law Commission

In addition to the time limit extension proposals, the Law Commission has also recommended:

• Allowing both employees and workers to bring breach of contract claims while they are still employed and not wait until they have left the employer before being able to do so.  Howard comments on this particular proposal, “This would permit a ‘cost free’ method of resolution unless fees are re-introduced in the future.”
• Creating a specialist list to deal with employment and discrimination - related cases in the High Court, such as wrongful dismissal, equal pay, and injunctions relating to restrictive covenants, confidential information and industrial action.
• Allow tribunals to hear complaints by employees who say they are working hours in excess of the maximum working time limits.
• Increase the amount that tribunals can award as damages in breach of contract claims.  Currently this limit is £25,000 and the Law Commission proposes this should be lifted to £100,000. Howard comments, “The current cap is unrealistic in light of executive pay levels, the amounts claimed in such disputes and inflation over many years since the limit was adopted.”
• Improving enforcement procedures to ensure claimants receive the compensation they are entitled to in a timely fashion.

Howard also comments, “The review by the Law Commission was principally designed to identify and address the gaps between the employment tribunals and civil courts, minimising the need for an employee or worker to bring two sets of claims, such as a breach of contract claim and unfair dismissal.  Essentially, by giving Employment Tribunals wider powers we could start to see more agreements and settlements being facilitated in the future. The downside may be additional delay in reaching a conclusion if matters do proceed to a full trial.  At this stage of course they are still only proposals and in light of the current coronavirus pandemic, we may see a delay to the consideration of these by Government.  However, it is refreshing to see that steps may be taken in the right direction to enable Tribunals to do justice between the parties in a more user friendly and efficient way in the future”.

If you are considering bringing a claim against your employer (or currently defending one), our Employment team are still working during the coronavirus pandemic.  You can contact Howard or a member of the team by calling 023 8071 7717 or emailing employment@warnergoodman.co.uk.

ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.