Draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026 Draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026

The Committee consisted of the following Members:

Chair: Sir Alec Shelbrooke

† Alaba, Mr Bayo (Southend East and Rochford) (Lab)

† Cooper, Daisy (St Albans) (LD)

Coyle, Neil (Bermondsey and Old Southwark) (Lab)

Darling, Steve (Torbay) (LD)

† Davies, Shaun (Telford) (Lab)

† Dearden, Kate (Parliamentary Under Secretary of State for Business and Trade)

† Goldsborough, Ben (South Norfolk) (Lab)

† Griffith, Andrew (Arundel and South Downs) (Con)

† Griffiths, Alison (Bognor Regis and Littlehampton) (Con)

† Mohindra, Mr Gagan (South West Hertfordshire) (Con)

† Mundell, David (Dumfriesshire, Clydesdale and Tweeddale) (Con)

† Opher, Dr Simon (Stroud) (Lab)

† Osborne, Tristan (Chatham and Aylesford) (Lab)

† Russell, Sarah (Congleton) (Lab)

† Stevenson, Kenneth (Airdrie and Shotts) (Lab)

† Tidball, Dr Marie (Penistone and Stocksbridge) (Lab)

† Webb, Chris (Blackpool South) (Lab)

Stella Maria Gabriel, Committee Clerk

† attended the Committee

Second Delegated Legislation Committee

Tuesday 23 June 2026

[Sir Alec Shelbrooke in the Chair]

Draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026

I beg to move, That the Committee has considered the draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026.

With this it will be convenient to consider the draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026.

It is a pleasure to serve under your chairmanship, Sir Alec. These two instruments, alongside the amendments made by the Employment Rights Act 2025, extend the time limit for presenting claims to the employment tribunal from three months to six months across the majority of employment rights. The draft regulations apply to Great Britain, while the draft order applies to England and Wales. The changes will help to create a framework that is more consistent and accessible, and better aligned with the realities faced by workers and employers. I recognise that Members will be rightly concerned about the capacity of the employment tribunal and the wider dispute resolution system to adapt to this change, given the growing caseload. However, I make it clear that we fully understand the challenges and are already working on reforms focusing on making the system more effective, efficient and resilient.

The dispute resolution system taskforce was set up by the Department for Business and Trade and the Ministry of Justice last year. It comprises representatives from business, trade unions, legal organisations and third sector organisations. The taskforce is helping to inform our work to develop reform measures, which include short term, targeted measures to reduce pressure on the system as well as forward looking measures intended to increase the efficiency, effectiveness and resilience of the system. Those will follow a phased approach, with work on some measures currently under way. We will have further opportunities to discuss that work, but I will now turn to the two instruments on employment tribunal time limits.

The draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026 are important because they ensure consistency with changes made by the Employment Rights Act and the current six month time limit for statutory redundancy and equal pay claims. For many people, three months has proved to be a difficult window, and the short timeframe has led to rushed claims or, in some cases, people missing the opportunity to bring a claim altogether.

By moving to a six month time limit, the regulations create a more realistic and fairer system that better reflects the realities people face, provides more time for disputes to be resolved without needing to go to an employment tribunal and supports fair access to justice. They give employees and employers more opportunity to engage with concerns early and, where possible, resolve disputes before they reach tribunal. The additional time, alongside the consistent approach to time limits across jurisdictions, will support employees to consider the merits of bringing a case to the employment tribunal, particularly in complex cases, as well as time to consider the legal costs and funding that may be required.

In practical terms, the regulations do this by updating a series of existing regulations so that the six month time limit applies across a range of workplace rights that were not already amended by the ERA, including those relating to part time workers, fixed term employees, zero hours workers, information and consultation and negotiating representatives, trade union blacklists and certain NHS related protections. By bringing those time limits into line with a single six month timeframe, the regulations support a clear and straightforward process.

The commencement date for the change is 1 October 2026. The new six month limit will apply only to claims where the problem at work occurred on or after 1 October 2026. Any claims based on earlier events will continue under the current three month time limit. That approach provides clarity and avoids disruption for cases already in progress.

The draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026 extends the time limit for bringing breach of employment contract claims by employees from three months to six months in England and Wales. The new time limit will apply only where the relevant employment contract is terminated on or after 1 October 2026. Claims relating to contracts terminating on earlier dates will continue under the current three month time limit. The change ensures consistency by aligning breach of employment contract claims with the extended employment tribunal time limits introduced by the Employment Rights Act. The instrument applies to claims of this nature in England and Wales only and does not extend to Scotland, as the power to change the parallel Scottish legislation, the Employment Tribunals Extension of Jurisdiction (Scotland) Order 1994, lies with Scottish Ministers and not the UK Government. We are working closely with the Scottish Government so that the change will also be made in the parallel Scottish legislation. However, in relation to Scotland, the change is expected to take effect in mid November. We will provide clear guidance to ensure that those based in Scotland are aware of this temporary discrepancy in the time limit for breach of employment contract claims.

Taken together, these instruments represent a sensible step forward by aligning with the changes to employment tribunal time limits in the Employment Rights Act. By creating a more realistic timeframe, improving consistency and supporting better prepared claims, they help deliver a fairer and more workable system for all.

I commend the regulations and the order to the Committee.

It is a pleasure to serve under your chairmanship, Sir Alec. It is also always a pleasure to follow the hon. Member for Halifax. She is the second Minister in her role in this Government, and I sincerely hope that we are not due a third. I wish her well over the coming weeks. There was a time—[Interruption.]

Order. The hon. Member for South Norfolk knows not to walk in front of me.

I apologise, Sir Alec.

There was a time not so long ago when we had a Government who said that they were obsessed with growth—that it was their core, underlying mission. Casting my mind back to that moment makes me feel old, but my goodness, what a long way we have travelled over the last almost two years.

I say that because no Government who were obsessed with growth, no Government who were genuine about creating the economic conditions for prosperity that provide our public services with the resource they need, and no Government who were sincere about giving the young people of this nation the opportunity to find work and climb the ladder of opportunity would, in all seriousness, have introduced these measures. It belies their lack of knowledge of working in business, for they do not understand the stifling impact of piling regulation upon regulation and doubling the period of jeopardy for an employer at a time when, as the Minister acknowledged, our employment tribunals are drowning, deluged and failing.

I suspect that hon. Members on both sides of the Committee have some appreciation, although maybe not the full horror, of what is going on right now in our employment tribunals. I would certainly like to hear more from the Minister and her officials about their plans to remedy a situation that we all should recognise as a crisis. To be fair, this did not all happen on the current Government’s watch. It dates back too many years, but it is getting worse by the week.

The open caseload of single claims stands at a record 64,157 in the last available figures, which is a 55% increase in a single year. One does not need Carol Vorderman’s maths ability to understand that the backlog has grown by more than half in the last 12 months alone, firmly on this Government’s watch. It is not too late for the Government to recant, to see the light and the wisdom, on this statutory instrument, and perhaps ingratiate themselves with the next Prime Minister and Chancellor, who are more firmly committed to the growth that has eluded the incumbents.

New single claim receipts rose by 39% last year to 50,000. That is the addition to the stack of claims, while—please write this down—disposals fell by just 12%. As we sit in this non air conditioned Committee Room this afternoon, more claims are being added to the pile. The backlog is growing. The prospect of claimants and employers receiving settlement of those claims now dates back more than two years in many parts of the United Kingdom. Again, I urge the Minister to correct me if any of these statistics, based on the figures of the Office for National Statistics on gov.uk, are somehow erroneous, or if I am portraying a false narrative of the situation as it exists today.

In these Committee Rooms, we are supposed to engage our minds and properly look at the evidence, not just vote the way we are told. Wouldn’t that be a good idea: evidence based policymaking, rather than simply yielding to whatever the Government ask and whatever officials put in front of us?

The Government’s overall economic analysis of the Employment Rights Act, of which these regulations are a small measure, implies that the volume of cases in the failing, unreformed employment tribunal system is expected to increase by about 17%—this is the economic analysis of the Department for Business and Trade from January 2026. That is 17% more cases on a backlog of 64,000, which is growing by the day and resulting in delays to claims of more than two years in many parts of the United Kingdom. I will not detain the Committee with every single measure in the 330-page unemployment Act that the Opposition oppose—that is largely behind us—but there is no reason, when we are in a hole, to keep digging and make the situation worse.

The independent Institute for Fiscal Studies estimates that about 80% of the costs that the system imposes on employers are passed on through lower wages, so it is the workers we seek to represent, our constituents, who ultimately bear the cost. Business has continually warned that increasing the already 13-week time limit would potentially significantly increase the jeopardy and therefore the risk.

And who ultimately pays the price? This may be a fact that Government Members do not wish to fully contemplate, assimilate and understand, but the people who pay the price are the young people who are denied those opportunities. I would be delighted if any Government Member wanted to intervene to tell me the rate of unemployment among 16 to 24-year olds today, and how much that has increased in the last 24 months under this Government as a result of both the swingeing increases in tax and the crushing amount of red tape.

In the absence of anyone intervening, and to move us forward quickly, I can reveal that the figure is 16.2%. That means that one in six of our young people between the ages of 16 and 24 who are actively looking for work—who are dispiritedly firing off application after application—are simply unable to find the work that they seek. That is 735,000 young people, almost three quarters of a million.

I believe in the good of Members, so I do not really believe that anybody on the Government Benches came here to put young people out of work, but the law that we pass most often is the law of unintended consequences. I urge Government Members to look at their consciences and decide whether putting more of our young people out of work is really what they came here to do.

I will conclude with a few points to the Minister, if she would be so kind as to respond. First, she talked about the idea that six months is somehow fairer than three months. If that is the case, and if it is the Government’s position, will she make representations to the Chancellor to similarly apply that 13-week increase to 26 weeks when it comes to HMRC? The ordinary taxpayer does not have that same luxury of time. If it is the Government’s new principle that the only fair period is 26 weeks, there will be plenty of opportunities to extend that across to other parts of Government in a symmetrical way.

Can the Minister share any specific assessment her Department has made of how many additional claims these two instruments alone will generate? We have heard about the 17% overall increase in tribunal claims, but can we have an understanding of the additional claims that relate just to these measures, so that Members can make an informed decision when they cast their vote? That is unless the Minister is kind enough to withdraw the measures today.

Given the 64,000-case backlog, what resources does the Minister plan to give the employment tribunal to remove the constraining factors by having additional judges, hearing rooms and sitting days and longer hours? Perhaps she has a comprehensive plan that can reassure hon. Members that 64,000 cases is just a transient backlog, and that it will not grow. Finally, if the Minister is confident—as I am sure she is—about the Government’s reforms, which she mentioned in passing, will she commit today to publishing a clear timetable that identifies the day on which the backlog will be reduced to the pre-2024 level she inherited?

It is a pleasure to serve under your chairship, Sir Alec. The shadow Minister asked whether this is really what Members came here to do, and I can say that I genuinely and literally came to this place to do this, so I am delighted that we are doing it. I was one of the people who joined Pregnant Then Screwed in its #Givemesix campaign against maternity discrimination. I spent years practising in employment tribunals, and I saw very large numbers of women with maternity discrimination claims and people with discrimination claims of all types.

There is a huge problem: 74,000 women a year are estimated to lose their job while they are pregnant or on maternity leave, over and above what would otherwise be expected for their demographic. This absolutely enormous problem is affecting our national productivity, with so many women falling out of the workplace after they have children.

When women have just had a baby and suddenly lose their job, they have very limited money because statutory maternity pay is extremely limited—it is awful—so they cannot afford legal advice. They also have a tiny baby, so bringing legal proceedings is not something they are seeking to do. It often takes them a long time to seek advice about their situation. Women are regularly being ruled out of bringing perfectly legitimate claims for the widespread problem of discrimination.

I gently remind the shadow Minister that his Government failed to recruit any employment tribunal judges from 2010 to 2018, and that is how we ended up in this mess. We have no pipeline of people coming through who have seniority. This Government recommenced the recruitment of judges, and, to be fair, at the very back end of the last Government there was some realisation of the catastrophic mess that had been generated in the employment tribunal system.

It is not in employers’ best interests for the system to be run down, and it is not in employers’ best interests for us to assume that the best thing for employees is to insist that they have no rights and are unable to enforce those that they have. None of those things make business better in Britain; what they do is level down so that the worst employers are enabled to get away with misconduct while penalising those who do the right thing.

I literally came here to do this. I have campaigned for this for years, and I could not be more pleased to see it happen, because what I think we will see is that good employers have absolutely nothing to fear from these measures. Good employers are the ones who are taking the time to deal with grievances properly, and that takes more than three months. At the moment, we are seeing people being pushed to bring claims to protect their position far too quickly, which pushes them into an adversarial process that is not in their best interests or employers’ best interests, and it is potentially enabling unscrupulous employers to find ways to get people to time out by unduly elongating the process. I absolutely support these measures, and every Labour Member should be proud of them. I want to say a huge thank you to Pregnant Then Screwed for the campaigning it has done for many years. I am really proud to be here today.

I thank the shadow Minister for his remarks and my hon. Friend the Member for Congleton for a brilliant and well made speech about why this legislation is so important.

Unfortunately, the shadow Minister conveniently missed out a couple of statistics in his opening remarks. I will start with the first one. Going back to historical statistics on the previous Government’s inability to fix and appropriately resource our employment tribunal, if we look at 2017 and 2018, the percentage increase year on year of the number of outstanding single cases reached a shocking 89%. From 2008 to 2018, the average time from receipt of a claim to the first hearing was stable at around 30 weeks. That increased to 49 weeks by early 2021. If we look at the stats published in 2023, employment tribunal delays had increased by 60% since 2010 due to resource shortages. I certainly do not want to go back to those targets, nor commit to them here today.

These measures are absolutely necessary because they recognise the reality that many people need more time to understand what has happened to them, seek advice and prepare their claim properly, as my hon. Friend the Member for Congleton outlined. By creating a more realistic timeframe, they will reduce the risk of a rushed or missed claim and support fair access to justice. At the same time, they will give employers greater opportunity to engage early to resolve concerns and avoid unnecessary employment tribunal claims.

The shadow Minister also asked what other work the Government have planned. I am sure he will welcome this update. He heard me refer to the dispute resolution system taskforce, which actually met this afternoon to progress that work at pace. I thank all members of the taskforce for their commitment and engagement so far to consider that longer term reform. We are considering reform measures, from early resolution to enforcement, to ensure that the system is more efficient and resilient, and to make up for the lack of resource we saw under the previous Government.

In the shorter term, we are continuing to invest in recruitment to build employment tribunal capacity. New salaried employment judges will be sitting from this summer, and recruitment is under way for up to 55 employment judges, who will add capacity from 2027. Recruitment for up to 150 non legal members will also conclude this year, which I am sure the shadow Minister will welcome.

The Government are also actively improving efficiency and productivity, including through virtual hearings to enable judges to hear cases remotely. Where local shortages arise, we are deploying legal officers to optimise limited judicial resource and centralised telephone support so that litigants get a consistently good service and so that tribunal staff can focus on case progression. We are also rolling out digital systems and piloting AI transcription to support employment tribunal performance.

We have talked about the impact of this legislation and why it is so important. Businesses will benefit from the increased time in which workplace procedures and conciliation can be completed. That creates an opportunity for disputes to be resolved before they even reach the employment tribunal, potentially reducing pressure on the employment tribunal system in turn.

The shadow Minister knows that we published an impact assessment setting out the impacts on both employers and employees. Although we expect that more claims could be brought to the employment tribunal, as he alluded to, he unfortunately missed out that the six month time limit will give employers and employees longer to resolve disputes without needing to go to tribunal. We expect that the additional time to submit a claim will result in fewer claims being submitted late, thereby saving judicial time by reducing the resource spent on considering time limit extensions. It would have been good of the shadow Minister to reflect on that latter part, too.

Just as importantly, the instruments will bring greater consistency across the system, aligning time limits and making the process clearer and easier to navigate for everyone involved. These are measured reforms. They will ensure that the system works better in practice by being clearer, fairer and more effective. I therefore commend the statutory instruments to the Committee.

Question put.

1|0|10|4|The Committee divided:|Question accordingly agreed to.||0|0

Resolved,

That the Committee has considered the draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026.

DRAFT EMPLOYMENT TRIBUNALS EXTENSION OF JURISDICTION (ENGLAND AND WALES) (AMENDMENT) ORDER 2026

Motion made, and Question put,

That the Committee has considered the draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026.—(Kate Dearden.)

2|0|10|4|The Committee divided:|Question accordingly agreed to.||0|0

Committee rose.