What Is the Limitation Period for Breach of Employment Contract Claims?

A breach of employment contract occurs when either the employer or employee fails to comply with the terms agreed in the employment contract. This can include issues such as unpaid wages, failure to give proper notice, unlawful deductions, or breach of contractual benefits.

In England and Wales, the time limit for bringing a breach of employment contract claim depends on where the claim is brought. Claims may be made either in an employment tribunal or in the civil courts, and each forum applies different limitation periods. Understanding this distinction is essential, as choosing the wrong route or missing a deadline can prevent a claim from being heard.

Two Legal Routes for Breach of Employment Contract Claims

There are two main routes for bringing a breach of contract claim:

1. Employment Tribunal
2. County Court (civil courts)

Each has different rules on time limits, eligibility, and financial limits.

Limitation Period in the Employment Tribunal

Standard time limit

In the employment tribunal, the limitation period for breach of contract claims is generally:

3 months minus 1 day from the date the employment ends.

This applies because tribunal jurisdiction over breach of contract is usually limited to claims that arise or are outstanding at termination of employment.

Key limitation on tribunal claims

Employment tribunals can only hear certain breach of contract claims, including:

• Claims brought after employment has ended
• Claims arising from a contract still in force at termination
• Claims with a financial value typically capped at £25,000 (in most cases)

Tribunals cannot generally deal with complex or high-value contractual disputes, which must be pursued in the civil courts.

Example

If an employee is dismissed on 10 March, a tribunal breach of contract claim must usually be presented by 9 June, subject to ACAS Early Conciliation adjustments.

Limitation Period in the County Court

Standard rule

For breach of employment contract claims brought in the County Court, the limitation period is:

6 years from the date of breach.

This is based on the general limitation rule for simple contract claims under the Limitation Act 1980.

How this applies in practice

The six-year period applies to most contractual employment disputes, including:

• Unpaid bonuses
• Breach of notice provisions
• Contractual benefits disputes
• Wrongful dismissal claims (breach of notice terms)
• Expenses or commission disputes

Unlike the tribunal, there is no requirement for the employment relationship to have ended before bringing a claim in the County Court.

Key Differences Between Tribunal and County Court Claims

The choice of forum affects both time limits and procedure:

Feature	Employment Tribunal	County Court
Time limit	3 months minus 1 day	6 years
Jurisdiction	Limited employment contract claims	Full contract disputes
Financial cap	Usually up to £25,000	No general cap
ACAS requirement	Mandatory Early Conciliation	Not required

ACAS Early Conciliation and Time Limits

For tribunal claims, ACAS Early Conciliation is a mandatory step before issuing proceedings.

Effect on limitation period

• The time limit is paused when ACAS is notified
• The clock resumes once the ACAS certificate is issued
• The claimant must still submit the tribunal claim promptly after conciliation

ACAS does not apply to County Court claims, meaning the six-year limitation period runs continuously.

Common Types of Breach of Employment Contract Claims

1. Unpaid wages or salary disputes

These may overlap with unlawful deduction from wages claims in the tribunal or contractual claims in the civil courts.

2. Wrongful dismissal

This is a breach of contract claim relating to failure to provide proper notice or payment in lieu of notice.

3. Breach of bonus or commission terms

Often brought in the County Court where amounts are significant or contractual interpretation is complex.

4. Failure to pay contractual benefits

This may include pensions contributions, car allowances, or contractual holiday pay disputes.

Important Legal Considerations

Continuing breaches

Some contractual breaches occur over time, such as ongoing non-payment. In such cases, each failure to pay may be treated as a separate breach, potentially affecting limitation calculations.

Accrual of the cause of action

The limitation period usually begins when the breach occurs, not when the claimant becomes aware of it, although discovery may be relevant in some disputes.

Tribunal limitations

Not all contractual claims can be brought in the tribunal. If the claim exceeds jurisdictional limits or involves complex issues, it must be pursued in the County Court.

What Happens if the Time Limit Is Missed?

If a claim is brought after the limitation period has expired:

Employment Tribunal

• The claim will usually be rejected
• Extensions are rare and depend on procedural discretion, not general fairness

County Court

• The claim becomes statute-barred under the Limitation Act
• The defendant can rely on limitation as a complete defence

Missing the deadline usually ends the claim entirely, regardless of its merits.

Practical Steps for Employees and Employers

To avoid limitation issues:

• Identify the date of breach immediately
• Check whether the claim belongs in the tribunal or County Court
• Calculate limitation from the correct starting point
• Consider ACAS Early Conciliation if using the tribunal route
• Act early where ongoing breaches are occurring

Early legal assessment is often necessary because jurisdiction and time limits are closely linked.

Key Takeaways

The limitation period for breach of employment contract claims in England and Wales depends on the forum:

• Employment Tribunal: 3 months minus 1 day from termination of employment, subject to strict jurisdictional limits
• County Court: 6 years from the date of breach under general contract law

ACAS Early Conciliation pauses time limits for tribunal claims but does not apply to County Court proceedings. Choosing the correct route and identifying the correct limitation period is essential, as missing the deadline will usually prevent the claim from being heard.