The Employment Rights Bill is progressing towards becoming law after its introduction in Parliament on 10 October 2024.
The Bill has now been amended following the completion of the committee stage in the House of Commons.
One of the most significant changes for employers is the Government's proposal to extend the time limit for Employment Tribunal claims from three months to six months.
Currently, most claims, including those for unfair dismissal, must be submitted within three months. If this change becomes law, it could have a broad impact on businesses, as claimants will have more time to decide whether to pursue a claim.
Additionally, it’s worth noting that on average, once a claim is submitted, it can take up to a year or more for the case to be heard at an Employment Tribunal.
If the time limit for bringing a claim is extended to six months, there runs a risk that the waiting time for hearings could increase further. This could result in challenges, such as witnesses' memories fading over time, which may affect the outcome of the case.
With these proposed changes, employers will need to consider the broader implications for workforce management, risk mitigation, and HR processes.
However, the extension of tribunal time limits is just one of several significant updates to the Employment Rights Bill.