ACAS Early Conciliation is a mandatory step in most employment disputes in England and Wales. Before an employee can bring a claim to the Employment Tribunal, they must usually notify ACAS and attempt early conciliation. This process is designed to encourage settlement without the need for formal legal proceedings.
Many employers and employees are unaware of how early conciliation works or underestimate its importance. Failing to follow the correct process can result in claims being rejected or time limits being missed. Understanding ACAS Early Conciliation is essential for anyone involved in an employment dispute.
This article explains what early conciliation is, how it works, and why it matters.
What is ACAS Early Conciliation
ACAS stands for the Advisory, Conciliation and Arbitration Service. It is an independent public body that provides free and impartial advice on employment law.
Early Conciliation is the process by which ACAS contacts both parties to explore whether a dispute can be resolved before a tribunal claim is issued. It applies to most employment claims, including unfair dismissal, discrimination, redundancy, wages, and breach of contract.
The employee must notify ACAS before submitting a tribunal claim. This is done by completing a simple online form. Once submitted, ACAS will contact the employee and assign a conciliator.
The conciliator will then contact the employer to see if they are willing to engage in discussions. Participation is voluntary, but the notification step is compulsory in most cases.
If a settlement is reached, it is recorded in a legally binding agreement known as a COT3. This agreement prevents further legal claims on the same issue.
If no settlement is reached, ACAS issues an Early Conciliation Certificate. This certificate contains a reference number which must be included in any tribunal claim.
How the early conciliation process works
Early conciliation usually lasts up to one month, although it can be extended by a further two weeks if both parties agree.
The process is informal and confidential. ACAS does not take sides or give legal advice. The role of the conciliator is to facilitate discussion and help both parties understand their options.
Communication often takes place by telephone or email. The parties do not have to speak to each other directly.
The conciliator will explore the issues, discuss possible outcomes, and attempt to bridge the gap between positions. This may include financial settlement, references, reinstatement, or agreed exit terms.
Early conciliation can lead to a wide range of outcomes:
• Full settlement of the dispute
• Partial settlement on some issues
• No settlement and progression to tribunal
• Withdrawal of the claim
Importantly, the time limit for bringing a tribunal claim is paused during early conciliation. This protects the employee from missing deadlines while negotiations take place.
Once the process ends, the clock resumes and strict tribunal time limits apply.
Why early conciliation matters
ACAS Early Conciliation plays a crucial role in resolving employment disputes efficiently. Most employment tribunal claims are settled before reaching a final hearing, and early conciliation is often the first opportunity to achieve resolution.
For employees, it offers a faster and less stressful alternative to litigation. Tribunal proceedings can take many months and outcomes are uncertain. Early settlement provides closure and financial certainty.
For employers, early conciliation reduces legal costs, reputational risk, and management time. It allows businesses to control outcomes rather than leave decisions to a judge.
Early conciliation also allows parties to maintain professional relationships and avoid public hearings.
However, early conciliation should not be treated casually. Statements made during the process can influence later negotiations, and poorly handled discussions can weaken legal positions.
Common mistakes include making unrealistic demands, ignoring the process, or agreeing settlements without understanding legal consequences.
When to seek legal advice
Although ACAS is impartial, it does not provide legal advice or assess the strength of claims. Both parties remain responsible for protecting their own interests.
Legal advice is especially important where claims involve discrimination, whistleblowing, large financial sums, or complex contractual issues.
Professional advice ensures that:
• Settlement terms are fair and lawful
• Compensation is calculated correctly
• Legal risks are properly assessed
• Agreements are binding and enforceable
At Penerely, we support both employers and employees throughout the early conciliation process. We provide strategic legal guidance, help clients prepare for negotiations, and ensure that settlements protect their long term interests.
ACAS Early Conciliation is often the most important stage of an employment dispute. Handling it correctly can save time, money, and stress.
If you are facing an employment dispute or have been contacted by ACAS, contact Penerely today for professional advice and support.
