What is an Employment Tribunal?

Every employer will face work issues from time to time. Sometimes, these can only be resolved at an employment tribunal. Employees, workers, even job applicants can choose to raise a claim against you.

It’s important for employers to understand what this means for their business and future relationship with the person in question. Failing to manage an employment tribunal claim could result in paying hefty fines, losing valuable staff, and facing business damages.

For further advice, contact one of our expert HR consultants free of charge today. In this guide, we'll look at what an employment tribunal is, what the law covers, and how steps to take when facing a claim against you.

What is an employment tribunal?

An employment tribunal is a public body who deals with work-related disputes.

A tribunal isn't as formal as a government court of law. But their final decisions are legally binding. Making a claim at a tribunal is quicker and cheaper, compared to courts.

Both parties may find it hard to understand employment law. So, they'll often bring a trade union or legal representative.

The person raising the dispute is the 'claimant' (usually the employee). And the one who receives it is the 'respondent' (usually the employer).

What claims are raised to an employment tribunal?

From unfair dismissal to disability discrimination… an employment tribunal deals with all kinds of claims raised by workers. Some of the most common tribunal claims include:

Dismissal: This includes wrongful, constructive, and unfair dismissal.

Equal pay: This covers equal pay rights, reduced wages, or not being paid at all.

Redundancy: This includes unfair selection or not being paid wages during redundancies.

Discrimination: This covers all nine protected characteristics. (Age; disability; gender reassignment; marriage or civil partnership; pregnancy and maternity; race; religion or belief; sex; and sexual orientation).

What is the law on employment tribunals?

On 6 January 2025, the government passed the new Employment Tribunal Procedure Rules. It’s best for employers to comply with this newer version rather than the previous, especially if they’re facing a tribunal claim.

An employee, worker, even job applicant can raise a tribunal claim – it’s part of their employment rights. That’s because they’re legally protected from discrimination, harassment, and victimisation. Employers cannot treat them unfavourably for raising a tribunal claim against them.

Both sides must follow the proper steps for the tribunal process. If you don't provide the correct documents or miss the hearing date, the claimant may automatically win.

Are there new legal changes to employment tribunals?

Yes, as part of the Employment Rights Bill 2024, there are new legal changes set to pass in the UK. Most of these proposals won’t come into effect until 2026; however, it’s best for employers to plan ahead to avoid costly outcomes to their business.

Let’s take a look at upcoming new legal changes to employment tribunals:

Employment tribunal reforms

Under the new Employment Tribunal Procedure Rules, the government has introduced a new Practice Direction for filing claims and responses. This is set to be published early this year.

Once it’s legally in place, employers must submit their ET3 form online, by post, or by letter. You can no longer submit these via email (except in limited circumstances).

Time limits

The government aims to extend the time limits for bringing an employment tribunal claim from three months to six. This decision is set to pass under a potential 2026 finalised version of the Employment Rights Bill.

There’s also a repeal motion for Minimal Service levels (which was introduced by the previous government). This decision will simplify trade union recognition and enhance protection for those taking industrial action.

Compensation awards

There are new laws on compensation awards handed out by employment tribunals. These specially apply to claims regarding collective consultations.

During these claims, the employment tribunal has the power to increase/decrease any protected award for non-compliance to requirements for collective consultations. This is up to 25%.

Usually, awards for non-compliance for collective consultation requirements can be used up to 90 days per claimant. After this change, any uplifts can significantly increase the potential costs.

Code of Practice on Dismissal and Re-engagement

Employment tribunals can also take action in cases where there is unreasonable failure to comply with the Code of Practice.

This legal change is particularly directed at Dismissal and Reengagement. Any employment tribunal awards made under the Code of Practice before the 90-day limit won’t be subject to the new potential uplift.

Do you have to pay to raise an employment tribunal claim?

You don't have to pay to raise a claim to an employment tribunal. In 2017, tribunal fees were declared unlawful by the Supreme Court. Getting rid of the fees meant claimants could make a claim without facing financial costs. They can now use the online service for free.

As of March 2025, the Secretary of State will be able to bring tribunal proceedings on behalf of workers; or provide legal assistance/representation for workers to bring claims themselves.

They'll also have the power to issue and enforce a notice of underpayment where the individual has been underpaid statutory payments or entitlements.

Are there alternatives to employment tribunals?

Yes, there are alternatives you can use instead of going to an employment tribunal. These methods are particularly beneficial for employers, as it protects staff relations, business continuity, and brand reputations.

These methods are known as alternative dispute resolutions (ADR) and include:

• Early conciliation.
• Mediation.
• Arbitration.
• Negotiation.
• Adjudication.

Get expert advice on employment tribunals with Peninsula

As an employer, you need to follow the right steps for workplace disputes. That way, you’ll be able to reach settlements without ruining business relations, continuity, and reputations.

Peninsula offers expert advice on employment tribunals. Our 24/7 HR advice is available 365 days a year. We also offer a bespoke employment tribunal service – helping reach the very best outcomes for our clients. For further information, call 0800 051 3685 today.

Sources

The Employment Tribunal Procedure Rules 2024 | GOV