What is Employment Tribunal? UK Guide for Employees And Employers

When internal discussions, HR meetings, or settlement talks fail to resolve the issue, workplace disputes can rapidly escalate into a source of stress. This is where an employment tribunal may come into play as the formal way for safeguarding workplace rights and determining whether the law has been violated.

So, what is employment tribunal? An employment tribunal is an independent legal body responsible for resolving workplace disputes between employers, employees, and, in certain instances, trade unions. It is less formal than a court, but it still reviews evidence, applies employment law, and makes legally binding decisions. This includes issues such as unfair dismissal, discrimination, redundancy pay, unpaid wages, holiday pay, and notice pay.

This guide explains what is employment tribunal, how it works, why it matters, and what its purpose is.

What is Employment Tribunal in the UK?

Before looking at how it works, you first need to understand what is employment tribunal. An employment tribunal is an independent judicial body responsible for resolving legal disputes between employers and employees in the United Kingdom. It hears legal claims relating to redundancy, discrimination, unpaid wages, unfair dismissal, and other employment rights. Its decisions are legally binding and designed to be more accessible than those of traditional civil courts.

How Does an Employment Tribunal Work?

To understand what is employment tribunal, you also need to know how it works and what key steps are involved. The Employment Tribunal process starts with the mandatory ACAS Early Conciliation. The employee submits an ET1 claim form if the issue remains unresolved. The employer (respondent) submits an ET3 form within 28 days. A judge then establishes guidelines for witness statements and document disclosure. Moreover, the process concludes with a hearing in which both parties present their evidence before a final verdict is delivered.

Who Can Use an Employment Tribunal?

Employees, workers and, in some cases, job applicants can bring claims before an Employment Tribunal. You must be employed in Great Britain or have previously worked there, and your employer must be located in, or conduct business in, Great Britain.

What Does an Employment Tribunal Do?

As mentioned above, an employment tribunal is an independent judicial body responsible for hearing claims between workers and employers. It can be used when a dispute over employment rights cannot be resolved through less formal means.

When You Can Claim?

You can bring a claim before an Employment Tribunal if you believe your employment rights have been breached. Unlawful treatment includes

• Unfair dismissal
• Discrimination at work
• Breach of contract
• Unauthorised deductions from your pay

Is It Worth Going To An Employment Tribunal?

When learning what is employment tribunal, it is essential to consider whether workplace disputes in a tribunal are worth the time, evidence, and potential outcome. In some cases, bringing an Employment Tribunal claim may be worthwhile if you have strong, well-documented evidence, substantial financial losses, and an employer capable of paying. It is important to keep in mind that the process is highly stressful and can take many months or even longer depending on the complexity of the case. Moreover, there is no guarantee of winning or ever receiving your awarded money.

How Long Do You Have to Make an Employment Tribunal Claim?

When discussing what is employment tribunals, the most important point to remember is that strict time constraints apply before a claim may be filed.

If you are considering filing a claim, the first step is to notify ACAS. You should complete this within your time frame. You have either:

• 3 months minus 1 day, for most claims
• 6 months minus 1 day, for a few claims

For example, you can claim 6 months minus 1 day for

• Statutory redundancy pay claims
• Equal pay claims
• Unfair dismissal claims related to strike action
• Certain claims made against a trade union
• Certain claims if you are a member of the armed forces

What Happens If You Win An Employment Tribunal?

The tribunal may impose specific obligations on the losing party if you win your case, depending on the nature of the case. Examples include:

• Paying you compensation
• Paying you for any witness expenses you have incurred
• Implementing measures to reduce the impact of discrimination against you
• Restoring your employment, if applicable

Do You Need ACAS Before Going to Tribunal?

A key part of understanding what is employment tribunal, is knowing that most claims must undergo ACAS early conciliation before reaching the formal tribunal stage. This process is referred to as early conciliation. It contacts both parties to determine whether the dispute can be resolved without a full employment tribunal hearing.

Early conciliation may persist for up to 12 weeks. If no settlement is reached or if either party declines to participate, ACAS issues an early conciliation certificate. Before you can submit your employment tribunal claim, you typically require the certificate number.

If a settlement is reached through ACAS, it is typically documented in a legally binding COT3. If the employer fails to pay under a COT3, the claimant may be able to enforce payment through the free penalty enforcement scheme or seek a court order.

Is It Better To Settle Or Go To Tribunal?

While exploring what is employment tribunal, keep in mind that the decision to settle or not depends on your personal priorities. Settlements provide confidentiality, guaranteed compensation, and speed. While a tribunal may yield a greater payout, it also involves significant risks, delays (often 12–24 months), and public hearings.

How Does the Employment Tribunal Process Work?

To fully understand what is employment tribunal, it is useful to look at how the process works. The Employment Tribunal process is a series of structured steps designed to resolve workplace disputes.

• Notify ACAS

Before you can submit a claim to the Employment Tribunals, you must notify ACAS (Advisory, Conciliation and Arbitration Service). A conciliator attempts to resolve the dispute without the necessity of formal legal action by contacting both parties.

• Time Limits

There are extremely strict time limits for filing a claim. In general, you have three months, minus one day, from the date of your employment termination or the date the issue occurs to submit your claim. Moreover, time is paused while undergoing ACAS Early Conciliation.

• Filing the Claim (ET1 Form)

If conciliation is unsuccessful, the claimant must submit an ET1 claim form entirely online. This form must include your ACAS reference number, fundamental job details, the causes of the issue, and your desired outcome.

• The Employer’s Response (ET3 Form)

The tribunal reviews the ET3 form, and a copy is sent to your employer (the respondent). Furthermore, the employer must submit an ET3 response form within 28 days, specifying whether they intend to contest the claim and providing a detailed explanation of their defence.

• Case Management

A judge reviews the forms and sets instructions and deadlines for preparing the case if the case is defended. This may involve a private preliminary hearing via video or telephone to resolve concerns and establish a schedule.

• Evidence Disclosure

Both parties are required to share all relevant documents. That includes a written witness statement outlining your witnesses’ testimony and a file containing all crucial evidence, such as emails and letters.

• Final Hearing

The hearing takes place at an employment tribunal office and is conducted by a single employment judge or, in certain circumstances, a three-person panel.

What Should I Do If The Case Settles?

A settled case is a key part of learning what is employment tribunal, as the dispute ends with an agreed outcome, and a final hearing. Before the hearing, both parties must inform the Employment Tribunal promptly if the case has been resolved. Our conciliation officer informs us whether your matter has been resolved through ACAS If your claim is resolved through ACAS, it is removed from the list for hearing (if included), and the case file is destroyed in accordance with our destruction policy 12 months after settlement.

The Bottom Line

Understanding what is employment tribunal is helpful for both employers and employees, as it provides insight into how serious workplace disputes are handled when they cannot be resolved internally. Tribunals can offer a formal route to challenge unjust treatment, unpaid wages, discrimination, dismissal, or other employment concerns. However, it must be approached with realistic expectations, clear evidence, and an understanding of the time limits.

Struggling to Understand What is Employment Tribunal

If you are still struggling to understand what is employment tribunal, you are not alone; many workers and employers face this. Well, the good news is that our accountants are here to help you. At LimitedCompanyAccountants, we help with reviews of payslips, unpaid wages, holiday pay, redundancy figures, and notice pay to ensure that your claim or defence is supported by accurate figures.