Draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026
Draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026
(Limited Text - Ministerial Extracts only)
Read Full debateThe Committee divided: - Ayes: 10 / Noes: 4 - Question accordingly agreed to.
The Committee divided: - Ayes: 10 / Noes: 4 - Question accordingly agreed to.
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I beg to move,
That the Committee has considered the draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026.
The Chair
With this it will be convenient to consider the draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026.
Kate Dearden
It is a pleasure to serve under your chairmanship, Sir Alec. These two instruments, alongside the amendments made by the Employment Rights Act 2025, extend the time limit for presenting claims to the employment tribunal from three months to six months across the majority of employment rights. The draft regulations apply to Great Britain, while the draft order applies to England and Wales. The changes will help to create a framework that is more consistent and accessible, and better aligned with the realities faced by workers and employers. I recognise that Members will be rightly concerned about the capacity of the employment tribunal and the wider dispute resolution system to adapt to this change, given the growing caseload. However, I make it clear that we fully understand the challenges and are already working on reforms focusing on making the system more effective, efficient and resilient.
The dispute resolution system taskforce was set up by the Department for Business and Trade and the Ministry of Justice last year. It comprises representatives from business, trade unions, legal organisations and third sector organisations. The taskforce is helping to inform our work to develop reform measures, which include short-term, targeted measures to reduce pressure on the system as well as forward-looking measures intended to increase the efficiency, effectiveness and resilience of the system. Those will follow a phased approach, with work on some measures currently under way. We will have further opportunities to discuss that work, but I will now turn to the two instruments on employment tribunal time limits.
The draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026 are important because they ensure consistency with changes made by the Employment Rights Act and the current six-month time limit for statutory redundancy and equal pay claims. For many people, three months has proved to be a difficult window, and the short timeframe has led to rushed claims or, in some cases, people missing the opportunity to bring a claim altogether.
By moving to a six-month time limit, the regulations create a more realistic and fairer system that better reflects the realities people face, provides more time for disputes to be resolved without needing to go to an employment tribunal and supports fair access to justice. They give employees and employers more opportunity to engage with concerns early and, where possible, resolve disputes before they reach tribunal. The additional time, alongside the consistent approach to time limits across jurisdictions, will support employees to consider the merits of bringing a case to the employment tribunal, particularly in complex cases, as well as time to consider the legal costs and funding that may be required.
In practical terms, the regulations do this by updating a series of existing regulations so that the six-month time limit applies across a range of workplace rights that were not already amended by the ERA, including those relating to part-time workers, fixed-term employees, zero-hours workers, information and consultation and negotiating representatives, trade union blacklists and certain NHS-related protections. By bringing those time limits into line with a single six-month timeframe, the regulations support a clear and straightforward process.
The commencement date for the change is 1 October 2026. The new six-month limit will apply only to claims where the problem at work occurred on or after 1 October 2026. Any claims based on earlier events will continue under the current three-month time limit. That approach provides clarity and avoids disruption for cases already in progress.
The draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026 extends the time limit for bringing breach of employment contract claims by employees from three months to six months in England and Wales. The new time limit will apply only where the relevant employment contract is terminated on or after 1 October 2026. Claims relating to contracts terminating on earlier dates will continue under the current three-month time limit. The change ensures consistency by aligning breach of employment contract claims with the extended employment tribunal time limits introduced by the Employment Rights Act. The instrument applies to claims of this nature in England and Wales only and does not extend to Scotland, as the power to change the parallel Scottish legislation, the Employment Tribunals Extension of Jurisdiction (Scotland) Order 1994, lies with Scottish Ministers and not the UK Government. We are working closely with the Scottish Government so that the change will also be made in the parallel Scottish legislation. However, in relation to Scotland, the change is expected to take effect in mid-November. We will provide clear guidance to ensure that those based in Scotland are aware of this temporary discrepancy in the time limit for breach of employment contract claims.
Taken together, these instruments represent a sensible step forward by aligning with the changes to employment tribunal time limits in the Employment Rights Act. By creating a more realistic timeframe, improving consistency and supporting better-prepared claims, they help deliver a fairer and more workable system for all.
I commend the regulations and the order to the Committee.
Kate Dearden
I thank the shadow Minister for his remarks and my hon. Friend the Member for Congleton for a brilliant and well-made speech about why this legislation is so important.
Unfortunately, the shadow Minister conveniently missed out a couple of statistics in his opening remarks. I will start with the first one. Going back to historical statistics on the previous Government’s inability to fix and appropriately resource our employment tribunal, if we look at 2017 and 2018, the percentage increase year on year of the number of outstanding single cases reached a shocking 89%. From 2008 to 2018, the average time from receipt of a claim to the first hearing was stable at around 30 weeks. That increased to 49 weeks by early 2021. If we look at the stats published in 2023, employment tribunal delays had increased by 60% since 2010 due to resource shortages. I certainly do not want to go back to those targets, nor commit to them here today.
These measures are absolutely necessary because they recognise the reality that many people need more time to understand what has happened to them, seek advice and prepare their claim properly, as my hon. Friend the Member for Congleton outlined. By creating a more realistic timeframe, they will reduce the risk of a rushed or missed claim and support fair access to justice. At the same time, they will give employers greater opportunity to engage early to resolve concerns and avoid unnecessary employment tribunal claims.
The shadow Minister also asked what other work the Government have planned. I am sure he will welcome this update. He heard me refer to the dispute resolution system taskforce, which actually met this afternoon to progress that work at pace. I thank all members of the taskforce for their commitment and engagement so far to consider that longer-term reform. We are considering reform measures, from early resolution to enforcement, to ensure that the system is more efficient and resilient, and to make up for the lack of resource we saw under the previous Government.
In the shorter term, we are continuing to invest in recruitment to build employment tribunal capacity. New salaried employment judges will be sitting from this summer, and recruitment is under way for up to 55 employment judges, who will add capacity from 2027. Recruitment for up to 150 non-legal members will also conclude this year, which I am sure the shadow Minister will welcome.
The Government are also actively improving efficiency and productivity, including through virtual hearings to enable judges to hear cases remotely. Where local shortages arise, we are deploying legal officers to optimise limited judicial resource and centralised telephone support so that litigants get a consistently good service and so that tribunal staff can focus on case progression. We are also rolling out digital systems and piloting AI transcription to support employment tribunal performance.
We have talked about the impact of this legislation and why it is so important. Businesses will benefit from the increased time in which workplace procedures and conciliation can be completed. That creates an opportunity for disputes to be resolved before they even reach the employment tribunal, potentially reducing pressure on the employment tribunal system in turn.
The shadow Minister knows that we published an impact assessment setting out the impacts on both employers and employees. Although we expect that more claims could be brought to the employment tribunal, as he alluded to, he unfortunately missed out that the six-month time limit will give employers and employees longer to resolve disputes without needing to go to tribunal. We expect that the additional time to submit a claim will result in fewer claims being submitted late, thereby saving judicial time by reducing the resource spent on considering time limit extensions. It would have been good of the shadow Minister to reflect on that latter part, too.
Just as importantly, the instruments will bring greater consistency across the system, aligning time limits and making the process clearer and easier to navigate for everyone involved. These are measured reforms. They will ensure that the system works better in practice by being clearer, fairer and more effective. I therefore commend the statutory instruments to the Committee.
Question put.