Published June 3, 2025 Written by [email protected]

Employment tribunals and early years: what you need to know

Running an early years’ business means you’ve already got plenty on your plate – from supporting children to managing day-to-day operations, dealing with an employment tribunal is likely the last thing you want to think about. But with 97,000 claims made in 2023/24 – and the highest award reaching £995,000 – it’s an issue that’s too important to ignore.

Our partner Citation is here to tell you everything you need to know to stay one step ahead and protect your nursery from avoidable risks.

Key deadlines you can’t miss

Under UK law, employment tribunal claims have to be filed within certain time frames – and these change depending on the type of claim. Missing these deadlines can result in the case being struck out. Let’s take a look at some of the key time limits:

Unfair dismissal – three months minus one day
Redundancy payment – six months minus one day
Discrimination – three months minus one day
Equal pay – six months minus one day
Unlawful deductions from wages – three months minus one day
Contract claims – three months minus one day
Holiday pay – three months minus one day.

When do employment tribunal time limits start?

The time limits for filing claims begin from different points, depending on the type of complaint.

Unfair dismissal – time starts from the “effective date of termination”. This could be the end of an employee’s notice period or the date they leave the business
Pay or wage disputes e.g. unlawful deductions – the clock starts from the payment date when the wrong amount was received or not paid at all
Discrimination cases – time starts from the date of the last act of discrimination or harassment included in the claim.

What to do when an employee files a claim

Employment tribunal claims can understandably feel daunting, but being informed and taking methodical action will help reduce the stress and make sure you stay on the right side of the law. Here’s a step-by-step overview of how to handle common claims:

1. Acknowledge receipt and gather information

It’s crucial to acknowledge that you’ve received the claim and start preparing to respond before the deadline. You can use this time to gather any documentation related to the case, like the employee’s contract, performance reviews, disciplinary records and correspondence

2. Seek legal advice

Expert guidance is invaluable when it comes to navigating a tribunal claim. Whether it’s an employment lawyer or HR professional, having someone explain your rights, responsibilities, the potential risks and the likely strengths and weaknesses of the claim and your defence will help you respond properly

3. Respond to claim

Follow the tribunal’s fixed procedures and meet the right deadlines for officially responding to the claim. Put together a solid response that outlines your version of events and back it up with evidence. A badly prepared response could weaken your case, even if you believe you’re in the right

4. Consider settlement options

Not every claim needs to go to a hearing – you could look at settlement options like negotiation or mediation to save time, reduce costs and keep up your professional relationship. A settlement should be “without prejudice”, so wouldn’t be treated as admitting you were at fault

5. Prepare for a hearing (if necessary)

If settling isn’t possible, focus on preparing for the hearing. Work closely with your legal representative, put together the evidence and see if there are any potential witnesses.

Exceptions and extensions

There are some cases where standard time limits or procedures might not apply, so here are a few scenarios where things might happen differently.

Statutory exceptions – some claims allow statutory examples, for example if new evidence comes to light after the time limits have passed, it might still be possible for a claim to be submitted. Exceptional circumstances like a serious illness that prevented filing within the limit might also qualify

Extension requests – extensions aren’t guaranteed but they can be applied for in cases of extenuating circumstances. These might include unavoidable admin delays or critical personal circumstances that got in the way

Disability or other circumstances – under the Equality Act, adjustments have to be made to accommodate claimants with disabilities. For example, more time might be allowed if a disability prevented them from filing a claim on time

International considerations – for employees who work abroad, timelines and procedures might vary, and the UK might not be the right jurisdiction to bring the claim, so you should seek legal advice to handle these claims properly.

Potential changes to employment tribunal time limits

An amendment to the Employment Rights Bill outlines key changes to the employment tribunal time limits, including an extension of the time limit for employees to bring a tribunal claim. The proposal extends the time limit from three months to six months in all types of cases, meaning employees would have longer to act. This could lead to an increased number of claims, so it’s worth knowing about this. To find out more about the changes introduced by the Employment Right’s Bill download our free guide here.

Citation – here to support you through employment tribunals

Our team of over 300 HR & Employment Law consultants are on hand 24/7 to provide personalised guidance to make sure your business stays compliant, and your workforce is protected. We’ll tailor our support to meet the unique needs of your business, helping you navigate the complex challenges your business might be facing. Plus,Citation clients are 16x less likely to be taken to tribunal against the national average – and even if you are, we’re by your side to handle all the admin, give you guaranteed advice and support you through the process. Even better? In 2024, we won 100% of the cases we represented, so you know you’re in safe hands.

As a member of the NDNA, you’re entitled to an exclusive 10% discount on new client contracts when you partner with Citation – just call 0345 844 1111 or click here to find out more about how we can support you. Remember to quote ‘NDNA’ to access your discount.

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