From 1 October 2026, the time limit for most employment tribunal claims will increase from three months to six months.
For SMEs, this extends the period within which workplace disputes can become formal claims. Moreover, it increases uncertainty after dismissals or complaints, making people management, clear records, and early resolution more important.
Alex Hodson, senior associate at Redmans Solicitors, dives into the risk for SMEs following these changes in time limits.
What is changing?
The three-month deadline has long shaped employment tribunal litigation. Employees usually have three months, less one day (from the act complained of), to start the process. This is subject to Acas Early Conciliation rules.
Now, the longer time limit is expected to apply to workplace issues arising on or after 1 October 2026. Where there is a continuing series of acts, the extended deadline may apply if the final act occurs on or after that date. SMEs will therefore need to check dates carefully when assessing whether a potential claim is still live.
That’s not all; a separate change has already lengthened the overall timeline. For cases notified to ACAS on or after 1 December 2025, the early conciliation period increased from 6 weeks to 12 weeks. Because early conciliation pauses the tribunal limitation clock, a claimant may have the new six-month claim period, up to 12 weeks of conciliation, and at least a further month to submit the claim after the conciliation certificate is issued.
In practice, some disputes could remain live for close to 10 months before it even reaches the tribunal.
How does this reform impact SMEs?
SMEs often have lean HR support, informal management structures and limited legal budgets.
A longer limitation period gives employees more time to seek advice, gather evidence and decide whether to make a claim. That may improve access to justice, but it also leaves employers facing longer uncertainty after dismissals, grievance outcomes, redundancy consultations or disciplinary processes.
For smaller businesses, the main impact may be cultural rather than legal. Managers who treated three months as the point at which risk had largely passed will need to adjust. Potential claims may remain relevant for six months or more, especially where Acas Early Conciliation adds up to 12 weeks.
Practical risk for employers
Retaining evidence
Memories fade, managers move on, and records become harder to locate. SMEs will be scrutinised on how decisions were made and whether conversations, warnings, reasonable adjustments, consultation steps and appeal outcomes were recorded at the time.
Employers must assume that every important decision may need to be explained long after the event.
Increased cost
Even where a claim is weak, defending it takes time and management may require external advice. Moreover, a longer claim period could encourage employees to explore their options, particularly where they have had time to reflect, speak to advisers or compare their experience with colleagues.
The wider availability of AI tools may also make some employees more confident about researching their position or preparing initial correspondence, which can increase the likelihood of disputes being pursued further.
Strained employee relations
A longer claim period means workplace disputes may remain active for longer, especially where an employee feels their concerns were not properly addressed. If grievances, complaints or exit issues are left unresolved, they can become harder to settle and may increase the likelihood of a claim.
SMEs should act promptly, follow a fair process and keep clear records, rather than assuming that time will reduce the risk.
How should SMEs prepare?
Here are some ways SMEs could be ready for the changes:
- Have clear disciplinary and grievance procedures that are followed consistently, with written invitations, meeting notes, outcomes and appeal rights. Implement template letters and scripts that help managers communicate decisions clearly without sounding defensive or inconsistent.
- Keep disciplinary, grievance, redundancy, sickness absence and performance records for long enough to cover the extended risk period. Train managers and HR to make short notes of key events or calls, meetings, and discussions to help create a clear, up-to-date record of the reasons for decisions and advice.
- Ensure line managers understand that informal comments, inconsistent treatment and poor documentation may become evidence months later. Provide training on implementing practical habits, such as taking notes at the time of discussions, giving clear reasons for decisions and making a note of this, and escalating higher-risk issues.
- Resolve issues earlier by using internal processes and Acas Early Conciliation constructively rather than treating them as box-ticking exercises. Even where a claim is weak, consider whether a commercial settlement would bring the dispute to a faster and more proportionate conclusion. It will help to have structured follow-up after grievances, exit conversations, and settlement discussions where appropriate.
- Conduct regular HR file audits. Check dismissals, redundancies, flexible working refusals, discrimination complaints and whistleblowing concerns carefully before final decisions are made. Also, check whether employee records are complete, dated and easy to locate.
- Implement retention rules for HR records, so documents are kept long enough to cover the extended claim window.
Final thoughts
The extension may increase the number of employment tribunal claims, but it also gives both sides more time to resolve disputes before litigation.
For SMEs, that is both an opportunity and a risk. Employers who respond early, keep clear records and deal with concerns fairly will be better placed to manage that risk.
The key point is straightforward: the six-month deadline will make employment risk last longer. SMEs do not need to become defensive or legalistic, but they do need to be more disciplined.
Good records, timely action and consistent management will matter more than ever.
This is sponsored content by Redmans Solicitors