Receiving notice that a former employee has brought a claim can be unsettling for any business. Employment claims often arise after dismissal, redundancy, or resignation, and they can expose employers to legal, financial, and reputational risk. In England and Wales, employment claims are governed by strict rules, procedures, and deadlines. Failing to respond properly can significantly weaken an employer’s position.
Understanding how employment claims work and what steps to take early on can make the difference between a manageable resolution and a costly tribunal dispute.
Common claims brought by ex employees
Former employees can bring a wide range of claims, depending on the circumstances of their departure. The most common claims include unfair dismissal, wrongful dismissal, discrimination, unpaid wages, holiday pay, redundancy pay, and breach of contract.
Unfair dismissal claims generally require the employee to have at least two years continuous service, although some dismissals are automatically unfair regardless of length of service. These include dismissals linked to pregnancy, whistleblowing, health and safety concerns, or asserting statutory rights.
Discrimination claims are particularly serious because there is no qualifying service requirement and compensation is uncapped. Claims can arise where an employee alleges unfavourable treatment linked to a protected characteristic such as age, disability, race, religion, sex, or sexual orientation.
Most employment claims must be started within three months less one day of the employment ending. Before a claim can be issued, the former employee must notify ACAS and attempt Early Conciliation.
How employers should respond
The first and most important step is to remain calm and avoid reacting emotionally. Claims should be treated seriously and handled professionally from the outset.
Employers should immediately review the claim and identify what type of claim is being made, the alleged legal basis, and the potential exposure. All relevant documentation should be gathered, including employment contracts, policies, disciplinary records, performance reviews, correspondence, and meeting notes.
Time limits are strict. Employers usually have twenty eight days to submit a formal response once a tribunal claim is issued. Missing deadlines can result in default judgments.
ACAS Early Conciliation presents an opportunity to resolve disputes without tribunal proceedings. While employers are not required to settle, early resolution can reduce legal costs, management time, and reputational risk.
Key steps employers should take include:
• Reviewing the claim objectively
• Preserving all relevant evidence
• Meeting procedural deadlines
• Considering settlement options carefully
• Taking legal advice early
Managing risk and protecting the business
Many employment claims escalate because employers underestimate their seriousness or respond informally. Inconsistent explanations, poor documentation, or poorly worded correspondence can significantly damage a defence.
Employers should also be cautious about communications with the former employee. Anything written may later be relied upon as evidence.
Even where an employer believes a claim lacks merit, tribunals expect parties to engage reasonably in the process. Refusing conciliation or failing to comply with procedures can lead to adverse cost consequences.
At Penerley, we assist employers with employment claims from the earliest stage. We advise on risk, prepare responses, negotiate settlements, and represent businesses through tribunal proceedings where necessary.
If a former employee has brought or threatened a claim, contact Penerley today for clear, strategic advice and support.
