Employment Law

Overview

Employment Law Route in Civil Litigation (UK)

Employment law in the UK governs the relationship between employers and employees, covering issues such as unfair dismissal, discrimination, wage disputes, breach of contract, and workplace rights. When disputes arise, employees may seek resolution through various means, including civil litigation. This guide outlines the employment law route in civil litigation and includes frequently asked questions to help navigate this complex area, integrating the sweeping reforms introduced by the Employment Rights Act 2025.

Common Employment Law Disputes

Employment law disputes can arise in various contexts, such as:

• Unfair Dismissal: When an employee believes they were terminated without a fair reason or proper procedure. Note that under the Employment Rights Act 2025, the qualifying period to claim “ordinary” unfair dismissal is reduced from two years to six months (effective January 2027).
• Discrimination: Issues related to discrimination based on race, gender, age, disability, or other protected characteristics under the Equality Act 2010.
• Wage Disputes: Disagreements over unpaid wages, bonuses, or holiday pay (unlawful deduction of wages).
• Breach of Contract: Situations where either the employer or employee fails to honor the terms of the employment contract.
• Redundancy: Disputes arising from redundancy processes that are perceived as unfair or unlawful.

Initial Steps: Internal Resolution and ACAS

Before pursuing civil litigation, employees are required to attempt to resolve disputes through specific procedures and mandatory mediation:

Internal Grievance Procedures:

• Raise a Grievance: Employees should first raise the issue through the employer’s internal grievance procedure following the ACAS Code of Practice. This is often the quickest way to resolve disputes without legal action.

ACAS Early Conciliation:

• Contact ACAS: If the internal process does not resolve the dispute, the employee must notify the Advisory, Conciliation and Arbitration Service (ACAS) for Early Conciliation. For most Employment Tribunal claims, contacting ACAS is a mandatory step before filing a claim. ACAS will attempt to mediate a settlement. The tribunal time limit is paused during this conciliation period, giving the parties a “fresh” timeframe once the Early Conciliation certificate is issued.

Civil Litigation Route: Employment Tribunal and Court

If the dispute cannot be resolved through internal procedures or ACAS, the next step is to pursue a claim through an Employment Tribunal or civil court:

Employment Tribunal:

• Filing a Claim: The Employment Tribunal is the primary forum for most statutory employment claims (unfair dismissal, discrimination, unpaid wages). Claims must usually be brought within 3 months of the relevant event (e.g., the date of dismissal or discriminatory act), but the exact deadline is affected by the ACAS Early Conciliation process and must be checked carefully.
• Hearing: The case will be heard by an Employment Judge (sometimes alongside panel members), who will consider evidence from both sides and issue a judgment.
• Remedies: The tribunal can order remedies such as compensation, reinstatement/re-engagement, or recommendations for the employer to take corrective action.

Civil Court (County Court or High Court):

• Jurisdictional Split: While tribunals handle most statutory rights, the Employment Tribunal has a strict £25,000 cap for breach of contract claims. Claims exceeding this amount, or complex wrongful dismissal claims, generally must go to the County Court or High Court. Civil courts also feature longer time limits (typically 6 years for contract breach) but operate under stricter “loser pays” costs rules compared to tribunals.

Possible Outcomes

Compensation

Employees may receive compensation for financial losses. For unfair dismissal, the statutory cap on the compensatory award was increased to £123,543 from 6 April 2026. Under the Employment Rights Act 2025, this cap will be removed entirely for dismissals with an effective date of termination on or after 1 January 2027, so awards will be based on evidenced actual and projected financial losses. Discrimination claims are already uncapped and can include awards for injury to feelings.

Reinstatement/Re-engagement:

• Return to Work: In law, the tribunal can order the employer to reinstate the employee to their previous position, though in practice, these orders are rarely made, and financial compensation is the standard remedy.

Corrective Actions:

• Policy Changes: In discrimination cases, the tribunal may make specific recommendations that the employer change policies to reduce the adverse effect of the discrimination.

Judicial Review and Appeals

In limited cases involving public bodies, or where an Employment Tribunal decision is challenged strictly on legal grounds, judicial review or an appeal on a point of law to the Employment Appeal Tribunal (EAT) may be possible. Judicial Review is not a standard route for private employment disputes.

Legal Aid and Representation

Legal aid is very limited in employment cases and is generally not available for ordinary unfair dismissal or discrimination claims. It may only be available in exceptional cases (e.g., involving modern slavery or serious human rights issues) subject to strict means and merits tests. Most employees rely on trade unions, pro bono clinics, legal expenses insurance, or conditional “no-win-no-fee” arrangements with solicitors.

Written on: 31 July 2026