When Does the Limitation Period Start for Unfair Dismissal Claims

An unfair dismissal claim must be brought within a strict statutory time limit. Determining when that time limit begins is essential, because an incorrect start date will usually result in the claim being rejected as out of time.

The starting point is not always the date an employee is told they are dismissed. Instead, the law uses a specific statutory concept known as the effective date of termination (EDT). This date governs when the limitation period begins for Employment Tribunal claims, including unfair dismissal.

The Legal Starting Point: Effective Date of Termination (EDT)

The limitation period for unfair dismissal claims starts on the effective date of termination (EDT).

Under section 97 of the Employment Rights Act 1996, the EDT is defined as:

• The date on which notice expires, where dismissal is with notice
• The date termination takes effect, where dismissal is without notice
• The date a fixed-term contract ends by expiry or limiting event

This definition is central because it determines:

• When employment legally ends
• When statutory rights such as unfair dismissal arise
• When the tribunal limitation period begins
• When continuous employment stops being counted

When the Limitation Clock Starts Running

For unfair dismissal claims, the tribunal time limit begins on the EDT.

Standard rule

• The limitation period is 3 months minus 1 day
• It runs from the EDT, not the date of the dismissal conversation or letter

This means the legal focus is on when employment actually ends, not when the decision to dismiss is communicated.

Different Scenarios for When the EDT Occurs

1. Dismissal with notice

Where an employee is given notice:

• The EDT is the last day of the notice period
• The clock starts when that notice period expires

Example:

• Notice given: 10 January
• Notice ends: 10 April
• Limitation period starts: 10 April

The fact the employee may stop working earlier (e.g. garden leave) does not normally change the EDT.

2. Summary dismissal (no notice)

Where employment ends immediately:

• The EDT is the date dismissal takes effect
• The limitation period starts on that date

Example:

• Dismissal: 10 January
• Limitation starts: 10 January

3. Payment in lieu of notice (PILON)

Where payment is made instead of notice:

• The EDT is usually the date employment ends under the contractual mechanism used
• This may be the date work stops or the date notice would otherwise expire, depending on contractual wording

This can materially affect the start of the limitation period.

4. Fixed-term contracts

Where a contract ends automatically:

• The EDT is the date the fixed term expires
• Or the date a specified event brings the contract to an end

Why the EDT Matters for Limitation Periods

The EDT is the trigger point for:

• The 3-month minus 1 day limitation period for unfair dismissal claims
• Continuous employment calculations (e.g. 2-year qualifying period)
• Compensation assessment periods in successful claims

Tribunals treat the EDT as the fixed legal anchor for all timing calculations.

ACAS Early Conciliation and the Start Date (Interaction Only)

Before submitting a claim, most claimants must go through early conciliation with ACAS.

This does not change the EDT, but it affects how the limitation period is calculated:

• The limitation clock starts at the EDT
• It pauses when ACAS is notified (if within time)
• It resumes after the early conciliation certificate is issued

The start date remains the EDT in all cases.

Common Misunderstandings About When Time Starts

1. The dismissal letter date is not always relevant

The clock does not necessarily start when:

• A dismissal letter is received
• A disciplinary hearing concludes
• An appeal is rejected

What matters is when employment legally ends (EDT).

2. Internal appeals do not delay the start date

• The EDT is not postponed by grievance or appeal processes
• These processes may continue after termination but do not affect limitation start

3. “Last day worked” is not always the EDT

Depending on the situation:

• The EDT may occur after the last working day (e.g. garden leave)
• Or earlier/later depending on contractual notice or PILON arrangements

4. Miscalculating EDT leads to late claims

Common issues include:

• Incorrect notice period calculation
• Ignoring statutory notice implications
• Confusing termination communication with legal termination date

Tribunals apply the EDT strictly, so errors often result in claims being dismissed as out of time.

Practical Consequences of the Start Date

Once the EDT is established:

• The limitation period runs for 3 months minus 1 day
• ACAS early conciliation may pause the clock
• Missing the deadline usually prevents the claim from being heard
• Tribunals rarely extend time for unfair dismissal unless strict legal tests are met

Key Takeaways

• The limitation period for unfair dismissal claims starts on the effective date of termination (EDT)
• The EDT is defined by statute and depends on how employment ends
• It may be the end of notice, the date of summary dismissal, or the end of a fixed-term contract
• The clock does not start from grievance outcomes or dismissal communication dates
• ACAS early conciliation does not change the EDT but can pause the limitation period
• Accurate identification of the EDT is essential to avoid losing the right to bring a claim