In the recent case of Wharton v Sheehan Haulage and Plant Hire Ltd, the Employment Appeal Tribunal held that in unlawful deductions from wages claims, the 3 month time limit ran from the date of deduction, not the termination date of employment. In this case, the date of the deduction was after the termination date, on the date that final salary was paid.
What are the time limits in the Employment Tribunal?
There are strict time limits for making a claim to an Employment Tribunal. However, different claims have different rules on time-limits.
Before making a claim, the employee should notify ACAS within the time limits below:-
- For most claims, employees have 3 moths minus 1 day to do so.
- For some specific claims such as statutory redundancy pay claims, employees have 6 months minus 1 day to notify ACAS.
The early conciliation process can pause the time limit for up to 6 weeks while conciliation takes place. An employee will then have a minimum of 1 calendar month from the date they receive the early conciliation certificate to make a claim to the Employment Tribunal.
When does the time limit start?
The statutory time limit normally starts to run from the termination date, but this is not always the case. The Employment Appeal Tribunal decision in Wharton emphasises the difficulties of making assumptions about tribunal time limits.
This is a stark reminder that even if the termination date for an employee has passed, this does not necessarily mean that limitation for commencing ACAS early conciliation ends 3 months from the date, and that events after this date can result in an extended limitation.
Working out time limits can be complex, especially if:
- the problem at work encountered by the employee covers more than one type of claim; or
- there have been multiple incidents or the problem is ongoing.
Why is the time limit important?
The Wharton case highlights the importance of punctuality when commencing ACAS conciliation and is a reminder for claimants to ensure that their claims are made well within time. It is difficult for claimants to persuade a Tribunal to allow claims that are out of time.
Issues relating to time limits are also generally good points for employers to watch out for. Any litigation or other strategy based on statutory time limits can be undermined if the date on which time starts to run is not correctly identified. To calculate the time limit, however, the claim or how the claim could be interpreted, has to be identified.
Please contact us if you would like more information about the issues raised in this article or any other aspect of employment law at 02920 345 511 or employment@berrysmith.com