The Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026

The Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026 marks a significant procedural shift for employment law practitioners. Effective from 1st October 2026, this Order extends the time limit for employees to present complaints concerning contract of employment claims to an Employment Tribunal from the long-standing three months to six months. This amendment, made under the powers of the Employment Tribunals Act 1996, directly modifies the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994. The change aims to enhance access to justice and provide claimants with more time to prepare their cases, aligning with broader governmental reforms to Employment Tribunal time limits. Practitioners must update their advice to both claimants and respondents, considering the extended period of potential liability and the implications for case management and record-keeping.

The landscape of employment litigation in England and Wales is set to undergo a notable change with the introduction of The Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026. This statutory instrument, coming into force on 1st October 2026, directly amends the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994, which first empowered Employment Tribunals to hear certain breach of contract claims. The core of this amendment is the extension of the time limit for employees to bring such contractual claims from three months to six months.

This development is of critical importance to legal professionals advising on employment matters. For decades, the three-month time limit has been a fundamental procedural hurdle for claimants and a key consideration for employers in assessing their exposure. The doubling of this period for contract claims will necessitate a re-evaluation of current practices, from initial advice on potential claims to strategies for dispute resolution and record retention. This article will delve into the specifics of the amendment, its historical context, and the practical implications for both employees and employers.

The jurisdiction of Employment Tribunals (ETs) in England and Wales is primarily statutory, derived from legislation such as the Employment Tribunals Act 1996 and the Employment Rights Act 1996. While ETs traditionally dealt with statutory rights like unfair dismissal and discrimination, their remit was expanded to include certain contractual disputes through the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994 (the "1994 Order"). This extension allowed ETs to hear claims for damages for breach of an employment contract, or for sums due under such a contract, provided the claim arose or was outstanding on the termination of the employee's employment.

Prior to the 2026 amendment, Article 7 of the 1994 Order stipulated that an employee's complaint about a contractual claim had to be presented within three months, beginning with the effective date of termination. This three-month period was generally consistent with the time limits for many other statutory claims heard by ETs, such as unfair dismissal. However, it stood in stark contrast to the six-year limitation period typically applicable to contract claims in the civil courts under the Limitation Act 1980. The 1994 Order also imposed a financial cap on awards for contract claims, limiting them to £25,000, beyond which claims must still be pursued in the civil courts. Furthermore, before lodging a claim, mandatory Acas Early Conciliation must be undertaken, which can extend the effective time limit.

The Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026 directly amends Article 7(a) and (b) of the 1994 Order, substituting "three" with "six" months. This means that for contract of employment claims arising or outstanding on the termination of employment, employees will now have six months from the effective date of termination to present their complaint to an Employment Tribunal. This change applies to claims where the relevant event takes place on or after 1st October 2026.

This extension aligns the time limit for contract claims with a broader trend of increasing limitation periods across various Employment Tribunal claims, many of which are being extended to six months under the Employment Rights Act 2025. The rationale behind these extensions is largely to enhance access to justice, providing claimants with more time to process their situation, seek legal advice, and thoroughly prepare their cases. The previous three-month limit was often criticised for being too short, particularly for individuals dealing with the emotional and practical aftermath of job loss. The extended period may allow for more considered decisions regarding litigation and potentially facilitate earlier settlement discussions, as parties have a longer window to engage in pre-action conciliation.

However, the extension also presents new challenges. For employers, it means a longer period of uncertainty regarding potential claims, necessitating more robust and prolonged record-keeping practices. The increased time may also lead to a higher volume of claims, potentially exacerbating existing backlogs within the Employment Tribunal system, unless accompanied by additional resources. While the primary time limit is extended, the discretion of tribunals to allow out-of-time claims under the "not reasonably practicable" test for contract claims (as opposed to the "just and equitable" test for discrimination claims) remains relevant for events occurring before the new Order's commencement or in exceptional circumstances. It is crucial to remember that the £25,000 cap on awards for contract claims in the ET remains unchanged, meaning high-value claims will still need to be pursued in the civil courts.

The Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026 represents a significant procedural adjustment for employment law. By extending the time limit for contract of employment claims to six months, the Order aims to improve access to justice and allow for more thorough preparation of cases. This change, effective from 1st October 2026, requires immediate attention from legal practitioners.

Practitioners must update their internal guidance and client advice to reflect the new six-month window for contractual claims. Employers should review and potentially revise their record-keeping policies and dispute resolution strategies, acknowledging the extended period during which a claim may be brought. For employees, the longer time limit offers a welcome opportunity for careful consideration and preparation, though the importance of seeking timely advice and engaging in Acas Early Conciliation remains paramount. As this change takes effect, it will be important to monitor its impact on the volume and complexity of claims, as well as the overall efficiency of the Employment Tribunal system.