Termination Procedures and Tribunal Time Limits: What the 2026 Rule Changes Mean for Employers

Exits done wrong can cost your business more than just money.

We know that letting someone go isn’t easy and as a business owner, you’ll know it’s one of the hardest parts of running a business. It’s emotional, stressful and can keep you awake at night with worry. But beyond this, the legal landscape in the UK is changing.

With major changes expected in October 2026 regarding the employment tribunal time limit, getting your termination procedures right isn’t just a box ticking exercise. You need to ensure that you’re protecting your business and the new rules coming into effect are a game changer for risk management and culture protection. 

Download our factsheet to see exactly what’s changing and how to stay compliant.

What are the 2026 employment tribunal time limit rule changes?

For many years, the window for an employee to make a claim was tight. But this is now changing.

Previously, employees generally had three months (minus one day) from the effective date of termination to lodge a claim for unfair dismissal. But under the new 2026 rules, the employment tribunal time limit is being extended to six months.

But that’s not all. The UK government is also reducing the qualifying period for unfair dismissal rights. Where employees used to need two years service to claim ordinary unfair dismissal, this is being cut down to six months. This change is planned to be implemented from January 2027.

Why the shift?

Three months was often seen as too short for employees to process a dismissal, seek legal advice and start the conciliation process. By doubling the employment tribunal claim time limit, the system aims to give people more breathing room.

Why employment tribunal time limit changes matter for employers

Put simply, these changes increase your exposure to risk. Let’s take a look at a few reasons why.

1. The rear-view mirror is bigger

With a three month limit, you knew where you stood pretty quickly. But with a six month employment tribunal time limit, an ex-employee has half a year to reflect on their exit, and seek advice.

2. Tighten up on procedures

With employees having rights to bring unfair dismissal claims earlier in their employment, now is the perfect time to make sure your procedures are rock solid from day one. A fair and documented process for every employee, including those on probation, builds a strong foundation. This strengthens your people management and makes your business a better, fairer place to work.

3. Culture and reputation

The thing with employment tribunals is that they aren’t private. They are public record and a tribunal involving a messy exit can damage your employer brand. To ensure you stay an attractive employer for prospective employees, it’s in your best interest to stay ahead of these upcoming changes.

Key steps to protect your business under the new time limit for unfair dismissal rules

Protecting your business against these changes can be simple as long as you are organised and proactive. Here are a few steps you can take to protect your business.

1. Review and update termination policies

Blow off last year’s dust from your employee handbook. Review your current policies ensuring that there is no mention that employees can’t claim unfair dismissal until they’ve been with you for two years. If it does mention this, your policy is about to become non-compliant.

At the same time, update your disciplinary and dismissal policies to reflect the new rules. Communicate this thoroughly with management, ensuring that not only do they know it has changed, but what this means in practice.

2. Strengthen documentation practices

If it isn’t written down, it didn’t happen. With fast scaling businesses, documentation best practices can be the last thing on your mind. You have a quick chat with an underperforming employee in the break room, then another on Zoom. Then you decide it’s time to let them go. But wait… oh-oh, you haven’t got a paper trail.

3. Conduct fair and transparent terminations

A structured process is key to handling situations effectively and professionally. A fairness first approach not only protects your business but also fosters a culture of transparency and respect.

1. Establish the facts before making a decision.
2. Invite the employee to a formal meeting in writing, letting them know they can bring a companion.
3. Give them a change to state their case.
4. Make an objective decision based on evidence.
5. Always offer the right to appeal.

This way, you’re more likely to be protected even if the employment tribunal time limit is longer. Following a process like this, makes a successful claim much less likely.

4. Provide post-termination support

How you exit someone from your business is just as important as how you hire them. A bad experience can leave a sour taste in the mouth and is a quick way to encourage them to seek a claim.

Common mistakes to avoid under the new tribunal time limit rules

We’re all human at the end of the day, but there are some mistakes that can be completely avoided if you know what to look out for, including:

• Rushing the process: Don’t let frustration drive the timeline. Stick to the procedure, even if it takes a few weeks longer.
• Ignoring the team: Remember your remaining staff are watching. If they see a colleague disappear overnight without explanation, fear spreads. Be as transparent as possible within privacy limits.
• Thinking too small to be sued: The new employment tribunal claim time limit applies to everyone. From the corner shop to the FTSE 100.

Get prepared with confidence with Employment Hero

You didn’t start your business to become an expert in employment law, and you shouldn’t have to scramble to keep up when the rules change. Employment Hero gives you a built-in compliance safety net, helping you centralise employee records, stay on top of legally reviewed policy updates, and follow clear termination workflows so nothing gets missed. 

As the October 2026 tribunal time limit changes approach, now is the time to put robust, defensible processes in place that protect both your business and your culture. 

Download our factsheet to understand what’s changing, what it means for employers, and how Employment Hero can help you stay compliant with confidence.