An Employee Is Threatening an Employment Tribunal Claim: What to Do

If an employee threatens a tribunal claim, or Acas contacts you about early conciliation, do not ignore it. Take advice, check the time limits, preserve every relevant document and engage with Acas. If a claim is issued, you normally have 28 days to respond, so act quickly.

This post is for small business owners who have just been told an employee intends to bring, or has brought, a claim, and who are not sure what happens next.

First, stay calm and do not retaliate

A threat of a claim is stressful. Resist the urge to confront the employee, to dismiss them if they are still working for you, or to treat them differently. Anything that looks like punishment for raising a complaint can create a separate claim for victimisation or detriment.

Keep your tone professional, keep communications in writing where you can, and avoid discussing the dispute with colleagues.

What is Acas early conciliation?

Before most employees can bring a tribunal claim, they must notify Acas and be offered early conciliation. Acas then contacts the employer, offers to help both sides try to resolve the matter and, if it cannot be resolved, issues a certificate allowing the employee to proceed.

Taking part is voluntary but usually sensible. It is free, it is confidential and it gives you a chance to settle before the cost and uncertainty of a claim. Early conciliation also pauses the time limit while it takes place.

What to do in the first week

1. Take advice. Speak to an HR adviser or employment solicitor as soon as you hear. Early advice is cheaper and more effective.

2. Check your insurance. Many business insurance policies include legal expenses cover for employment disputes, but they often require you to notify the insurer promptly and use their panel solicitors. Missing the notification can lose cover.

3. Preserve documents. Keep emails, messages, notes, rotas, performance records and anything related. Deleting anything, even innocently, can be damaging.

4. Write a timeline. Set out the key events, dates and who was involved while memories are fresh.

5. Identify witnesses, and who made which decisions.

6. Respond to Acas promptly. Return calls and engage, even if only to say you are taking advice.

7. Consider the merits honestly. What went right, what went wrong, and what a tribunal is likely to see.

Settle or defend?

This is a commercial decision as much as a legal one. Cases can be settled through Acas, with a COT3 agreement, or through a settlement agreement. Settlement usually costs less than fighting to a hearing, even when you think you would win, because of management time, legal costs and uncertainty. On the other hand, a weak claim defended well sends a message, and paying out in every case invites more.

A good adviser will give you a realistic view of the strengths and weaknesses, the likely range of outcomes and the costs, so that you can decide.

If a claim is issued

If conciliation does not resolve the matter, the employee can submit a claim form to the tribunal, which is sent to you. You normally have 28 days to submit your response. If you miss it, the tribunal can issue a judgment against you without hearing your side.

• Read the claim carefully and check which claims are being brought

• Diarise the deadline immediately, and apply for an extension if you need one before it expires

• Prepare the response with your adviser, addressing each allegation

• Gather your evidence and witness statements

• Prepare for a case management process, and, if the case continues, a hearing

Employees do not pay a fee to bring a claim. Employers usually bear their own costs, and tribunals only award costs against a party in limited circumstances.

Time limits are changing

The time limit for most tribunal claims is now six months, rather than three, where the dismissal or act took place on or after 1 October 2026. Earlier events keep the three-month limit. Early conciliation pauses the clock. The result is that employees have longer to decide, and issues can resurface months after you thought they were over.

Also from 1 January 2027, unfair dismissal claims will be open to employees with six months' service, and the cap on unfair dismissal compensation is removed. Discrimination compensation has never been capped.

How to reduce the risk of getting here

• Follow a fair process, and write it down

• Handle grievances promptly

• Train managers

• Take advice before dismissing

• Keep good records