Guide
Respond to an employment tribunal claim
What to do when a current or former employee brings an employment tribunal claim against your business. Covers Acas early conciliation, the ET3 response, preparing for a hearing, and deciding whether to settle or defend.
If an employee claims against your business at an employment tribunal, you must respond within 28 days. Try to settle early through Acas conciliation. Gather evidence and decide whether to defend or settle the claim.
- Respond to tribunal claims within 28 days
- Try Acas early conciliation first (69% success rate)
- Submit ET3 form to dispute the claim
- Gather evidence like contracts and emails
- Time limits change to 6 months from October 2026
- Attend preliminary hearings if required
- Consider legal advice for complex cases
- Weigh costs of settling vs defending
- Keep employment records longer due to new time limits
- Acas can help negotiate settlements at any stage
Employment tribunals hear claims from employees and workers about their employment rights — unfair dismissal, discrimination, unlawful deduction of wages, whistleblowing, and breach of contract. If a claim is brought against your business, you must respond properly and within strict deadlines or risk a default judgment.
Most claims are resolved before reaching a hearing. Understanding the process helps you make informed decisions about whether to settle early or defend the claim.
Stage 1: Acas early conciliation
Before a claimant can submit a tribunal claim, they must contact Acas for early conciliation. Acas will contact you to see if the dispute can be resolved without a hearing.
Early conciliation is free and confidential. Anything said during conciliation cannot be used as evidence at tribunal. You are not obliged to participate, but it is often worth engaging — 69% of cases do not progress to tribunal after early conciliation.
If conciliation succeeds, Acas draws up a COT3 agreement that is legally binding on both parties. If it fails, Acas issues an early conciliation certificate and the claimant can then submit their tribunal claim.
Time limits for claims
Claimants must bring their claim within strict time limits. Understanding these helps you assess whether a claim is in time and how long you remain exposed after an employee leaves.
A claim submitted after the time limit will usually be rejected unless the tribunal considers it was not reasonably practicable to submit in time (for most claims) or that it is just and equitable to extend time (for discrimination claims). Discrimination claims are more likely to be allowed late.
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Receive the claim and check the deadline
The tribunal sends you a copy of the ET1 claim form. You have 28 days from the date it was sent to you to submit your ET3 response. Missing this deadline can result in a default judgment against you — do not ignore the claim.
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Submit your ET3 response
The ET3 is your formal defence. Set out clearly which parts of the claim you accept and which you dispute. Explain your version of events with dates and facts. You can submit online via the employment tribunal service. If you need more time, apply to the tribunal for an extension before the deadline passes.
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Gather your evidence
Collect all relevant documents: the employee's contract, disciplinary records, meeting notes, emails, policies they were given, and any witness statements. Organise documents chronologically. The tribunal will order disclosure of relevant documents — withholding evidence damages your credibility.
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Consider getting legal advice
Employment tribunal claims can be complex. Consider instructing a solicitor or HR consultant, especially for discrimination claims, automatically unfair dismissal, or claims with high potential awards. Some employers' liability insurance policies include legal expenses cover for tribunal claims.
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Attend the preliminary hearing
The tribunal may hold a preliminary hearing to clarify the issues, set a timetable, and give case management directions. Attend and be prepared — this is where the tribunal decides what evidence is needed and when the final hearing will take place.
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Decide whether to settle or defend
At any point before the final hearing, you can negotiate a settlement. Weigh up the likely award if you lose, your legal costs, management time, and the strength of your evidence. Acas can help broker a settlement even after a claim is submitted.
Costs and awards
Employment tribunals do not normally award costs — each side pays their own legal fees regardless of the outcome. However, the tribunal can award costs if a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably, or if the claim or response had no reasonable prospect of success.
If you lose, awards vary significantly by claim type:
- Unfair dismissal: basic award (based on age, service, and weekly pay) plus compensatory award (capped at the lower of 12 months' pay or the statutory cap — except for automatically unfair dismissals, which are uncapped)
- Discrimination: uncapped compensation including injury to feelings (Vento bands range from around £1,100 to £56,200+)
- Unlawful deduction of wages: the amount deducted plus interest
Failure to follow the Acas Code of Practice on discipline and grievance can result in a 25% uplift to any tribunal award. Following the Code properly is one of the most effective ways to reduce your risk.
Protect your position
- Never ignore a claim — if you do not submit an ET3 response within 28 days, the tribunal can enter a default judgment without hearing your side.
- Preserve evidence — do not delete emails, CCTV footage, or records that might be relevant. Destroying evidence after a claim is made can lead to adverse inferences.
- Keep records for at least 6 months after an employee leaves (extending to 6 months from October 2026 to match the new time limits).
- Follow the Acas Code — for every dismissal and grievance. This protects you against the 25% uplift and demonstrates procedural fairness.
Northern Ireland
Employment law is devolved in Northern Ireland. Tribunal claims in Northern Ireland go to the Industrial Tribunal (not the Employment Tribunal) and are governed by different legislation. Contact the Labour Relations Agency for guidance on Northern Ireland tribunal procedures.