With major provisions of the Employment Rights Act 2025 taking effect on 1 October 2026, employment law in England and Wales is undergoing its most significant shift in years. While much attention has rightly focused on trade union access and third-party harassment duties, one fundamental procedural reform demands immediate operational attention: the doubling of the Employment Tribunal limitation period from three months to six months.
For any act, omission, or dismissal occurring on or after 1 October 2026, employees will have six full months, rather than three, to lodge a claim with the Employment Tribunal.
While a six-month window has long been standard for statutory redundancy payments and equal pay claims, extending this timeline across all ‘ordinary’ Employment Rights Act claims permanently changes HR risk management, witness memory, and dispute resolution strategy.
The Practical Impact on Workplace Risk
The historic three-month limitation period served as a swift mechanism for resolving workplace disputes. If an exit went smoothly or an informal grievance quieted down for ninety days, employers could generally draw a line under the matter.
Under the new six-month rule, that safety margin vanishes:
- The Delay of Claims: An employee who departs quietly or accepts a discretionary exit package without a formal settlement agreement now has a half-year window to reconsider, seek legal advice, and issue proceedings.
- Fading Witness Recollections: Line managers and witnesses called to testify will be asked to recall conversations, performance reviews, and informal verbal warnings that took place around 18 months prior by the time a full hearing occurs (or a lot longer in some regions due to Tribunal delays).
- Staff Turnover Challenges: Key witnesses, investigating officers, or HR leads involved in a workplace dispute may leave the business long before a claim is formally served, leaving the employer struggling to piece together a defence.
Overhauling HR Record-Keeping
To mitigate the risk of delayed claims, businesses must move away from informal, undocumented decision-making.
- Document the “Informal” Steps: Informal performance chats, verbal check-ins, and soft warnings must be logged in writing. A simple follow-up email confirming key discussion points creates an immediate contemporaneous paper trail.
- Standardise Exit Records: Conduct formal exit interviews for all departing staff, regardless of whether the departure appears amicable. Clear, contemporaneous notes signed off at departure make it significantly harder for a former employee to construct a contradictory narrative months later.
- Extend File Retention Windows: HR teams should adjust internal document retention schedules. Notes from grievance meetings, disciplinary investigations, and capability processes should be archived securely for a minimum of 12 months post-exit to ensure full coverage during the expanded claim window.
Rethinking Settlement Strategy
The extended limitation period will also impact settlement dynamics:
- Without Prejudice Discussions: Unrepresented employees will have twice as long to weigh up settlement offers or consult Acas.
- Settlement Agreements: Discretionary severance packages or exit arrangements should more routinely be formalised via a binding Settlement Agreement with independent legal advice. Relying on an unbinding “handshake deal” now carries six months of unhedged exposure.
3 Steps Employers Must Take Before 1 October
- Audit HR Archiving: Ensure line managers submit all local notes, emails, and interview records to central HR immediately upon any employee exit.
- Train Line Managers: Educate team leaders on the legal weight of contemporaneous notes. Ensure they understand that informal conversations must be recorded accurately.
- Review Exit Protocols: Update offboarding checklists to ensure formal exit interviews and written acknowledgements are completed consistently.
Need guidance on updating your HR record-keeping protocols or drafting compliant policies or training your managers ahead of the October deadline? Contact the team at Refreshing Law for expert, practical advice.
CONTACT US
We’re here to help with any questions or concerns you may have. Whether you need expert advice or would like an initial conversation about our services, pricing, or the options available, please don’t hesitate to get in touch. At Refreshing Law, what sets us apart from other law firms is that you’ll get to speak to an experienced employment lawyer right from the very first call.
lreynolds@refreshinglawltd.co.uk
Lousha Reynolds
Refreshing Law