Limitation Period for Wrongful Dismissal Claims in the Employment Tribunal

Wrongful dismissal claims arise where an employer breaches an employee's contract of employment when terminating employment, most commonly by failing to give proper notice or by not complying with contractual dismissal procedures. In England and Wales, such claims can sometimes be brought in the Employment Tribunal, although they are also frequently pursued in the civil courts depending on value and circumstances.

A critical issue in any wrongful dismissal case is the limitation period. This refers to the strict legal deadline by which a claim must be started. Missing this deadline will usually prevent the claim from proceeding, regardless of its merits. Understanding how the time limit works, when it starts, and how it can be affected by pre-claim procedures is essential.

Legal Basis for Wrongful Dismissal Claims in the Employment Tribunal

Wrongful dismissal is a contractual claim based on breach of contract, rather than a statutory right. Employment Tribunals only have jurisdiction over breach of contract claims in limited circumstances, typically where the employment has already ended.

Claims may relate to issues such as:

• Failure to give contractual or statutory notice
• Incorrect payment in lieu of notice
• Breach of contractual disciplinary or dismissal procedures
• Failure to honour contractual termination terms

Where the claim is pursued in the Employment Tribunal rather than the civil courts, strict statutory time limits apply.

Standard Limitation Period

The “Three Months Less One Day” Rule

The general limitation period for wrongful dismissal claims in the Employment Tribunal is:

3 months less 1 day from the effective date of termination (EDT).

The EDT is usually:

• The last day of employment if notice was worked
• The date of dismissal if dismissed without notice (summary dismissal)
• The date notice expires where notice is given but not worked
• The date payment in lieu of notice takes effect in some cases

This limitation period applies broadly to Employment Tribunal claims connected to dismissal, including wrongful dismissal where the Tribunal has jurisdiction.

Practical calculation example

If employment ends on 10 January, the claim deadline will normally expire on 9 April at 11:59pm, subject to any adjustment for early conciliation.

When the Limitation Period Starts

The starting point is generally the effective date of termination, not the date of the alleged breach itself.

This can vary depending on dismissal type:

• Immediate dismissal: time runs from the dismissal date
• Notice dismissal: time runs from the end of the notice period
• Payment in lieu of notice: time runs from the termination date specified by the employer

Accurate identification of the EDT is often decisive in determining whether a claim is in time.

ACAS Early Conciliation and Its Effect on Time Limits

Before most Employment Tribunal claims can be issued, the claimant must notify ACAS under the Early Conciliation process.

This requirement affects limitation periods in a specific way:

Pausing the limitation clock

When ACAS Early Conciliation is initiated within the original time limit:

• The limitation clock is paused during the conciliation period
• Time stops running from the date ACAS is notified
• Time resumes when the Early Conciliation Certificate is issued

This is commonly referred to as a “stop the clock” mechanism.

Minimum extension after conciliation

Once the certificate is issued, claimants are generally given:

• At least one month (less one day) from the date of the certificate to submit the tribunal claim, even if the original limitation period has nearly expired.

Other Relevant Limitation Periods in Tribunal Claims

Although wrongful dismissal claims usually follow the 3-month rule, related claims may have different deadlines, including:

• Unfair dismissal: 3 months less 1 day from EDT
• Discrimination claims: 3 months less 1 day from the last discriminatory act
• Unlawful deduction from wages: 3 months less 1 day from the last deduction
• Redundancy payment claims: generally 6 months less 1 day

These distinctions matter where multiple claims are brought together following termination.

Extension of Time and Exceptions

Tribunals apply limitation rules strictly. Extensions are rare and usually depend on statutory exceptions.

Common grounds for extending time include:

• Where it was not reasonably practicable to present the claim in time (limited scope)
• Where the tribunal considers it just and equitable (mainly discrimination claims)

For wrongful dismissal claims, extensions are generally difficult to obtain, particularly where the delay is not clearly justified.

Relationship Between Employment Tribunal and Civil Court Time Limits

Wrongful dismissal can also be brought in the civil courts as a breach of contract claim. In that forum, the limitation period is typically:

• 6 years from the date of breach (Limitation Act 1980)

However, where the claim is brought in the Employment Tribunal, the significantly shorter 3-month regime applies. This makes early action essential where tribunal jurisdiction is used.

Common Issues in Calculating Time Limits

1. Misidentifying the termination date

Errors often arise where notice, payment in lieu, or suspension periods are misunderstood.

2. Assuming internal procedures extend time

Grievance procedures, appeals, or negotiations do not generally stop or extend limitation periods.

3. Late ACAS notification

Early Conciliation only pauses time if started before the limitation period expires.

4. Continuing acts confusion

Where multiple related incidents occur, the tribunal may assess whether there is a continuing breach or separate acts, which affects the start date.

Consequences of Missing the Limitation Period

If a claim is submitted outside the limitation period:

• The tribunal may strike it out
• The claim may only proceed if an extension is granted in limited circumstances
• Jurisdictional arguments may arise at preliminary hearings
• Even strong claims can fail purely due to lateness

Time limits are therefore treated as a threshold issue before the merits of the claim are considered.

Practical Steps for Claimants

A structured approach is commonly required:

1. Identify the effective date of termination
2. Calculate the 3-month minus 1 day deadline
3. Notify ACAS before the deadline expires
4. Account for any pause in time during Early Conciliation
5. Lodge the ET1 claim promptly after receiving the certificate

Early calculation reduces the risk of procedural dismissal.

Key Takeaways

The limitation period for wrongful dismissal claims in the Employment Tribunal is generally 3 months less 1 day from the effective date of termination. This deadline is strictly enforced. ACAS Early Conciliation pauses the limitation period if started in time and can extend the final deadline slightly, but it does not remove the need to act quickly. In most cases, missing the deadline will prevent the claim from proceeding, making accurate calculation and early action essential.