What to do when an employment tribunal claim is made

Key takeaways:

Deadlines require immediate action: You have a strict 28-day window to respond to an ET1 claim form, making prompt engagement with your legal or HR adviser critical.
Defending a claim is costly: The average cost to defend a discrimination claim ranges between £15,000 and £25,000, even if the tribunal rules in your favour.
Certain awards are uncapped: While unfair dismissal compensation is capped at just under £120,000, payouts for discrimination and whistleblowing claims are completely unlimited and can exceed £250,000.
Transparency is mandatory during disclosure: Both parties must share all relevant documents during the evidence exchange phase, even if those documents damage their own case.

Opening the post to find an ET1 claim form is enough to make any business owner’s heart sink. Even if you’ve done everything by the book, claims can still land, and knowing what to do when an employment tribunal claim is made is the difference between a managed situation and a total headache. Especially considering the first 28 days matter most.

In this guide, we’re going to walk you through the immediate steps you need to take the second a claim arrives, how to build a rock-solid ET3 response, and what actually happens behind the scenes during a tribunal hearing. Whether you’re facing a claim for unfair dismissal or a complex discrimination case, here’s your step-by-step plan to staying in control and defending your hard work.

What are the first steps after receiving a tribunal claim?

Even with the best policies, claims can happen. Some tips on how to respond:

Act quickly

You’ve got 28 days to respond to the ET1 claim form
Note the deadline and inform your HR/legal adviser

Notify the right people

Tell senior management and your insurer (if you have legal expenses cover)

Prepare your ET3 response

File your defence on the ET3 form
Stick to facts backed up with evidence

Gather evidence

Collect contracts, policies, emails, meeting notes, and performance records

Consider settlement

Acas early conciliation may still be an option
Settlement can save cost, stress, and reputational damage

Understanding the tribunal process

What you can expect at each stage

Once your ET3 response is submitted, the tribunal process begins. It can feel daunting, but if you know the steps, you can prepare and stay in control.

Preliminary hearing

Can be requested by an employee, employer, or the tribunal
Short hearing often via phone or video
Use to clarify the issues, set deadlines, or decide if parts of the claim should be struck out

Disclosure and evidence exchange

Both sides share all relevant documents, even if they don’t help their case
Typical employer evidence includes contracts, policies, meeting notes, emails, and performance records
Bundles are prepared — collections of all documents the tribunal will review

Case management orders

What are they: They determine how a case should proceed. They’re sent with the claim for or given at the preliminary hearing

What they include: They usually cover the exchange of documents and witness statements, but can also need:

Obtaining medical evidence
Either party providing more detail about their claim or defence
Agreeing timetables for hearings and disclosure

Witness statements

Written, signed accounts from anyone giving evidence
Have to be exchanged before the hearing
Witnesses should only approve their statement if they’re 100% comfortable that it’s accurate and comprehensive

The hearing

Most hearings happen four to six months after proceedings begin. But if it’s complex or there are backlogs, it can be much further.

Hearings are generally open to the public. They’re usually overseen by an employment judge, sometimes supported by two lay members. In some cases, such as unfair dismissal, the judge may sit alone.

How the hearing runs

The order of proceedings depends on the claim. For unfair dismissals, the employer often presents their case first.
Witnesses are sworn in and give their evidence.
Cross-examination follows, where each witness can be questioned by the other side’s representative and the tribunal judge/panel
Both sides refer to the ‘hearing bundle’

Timings

Hearings typically last three to five days, longer for discrimination or whistleblowing claims
The tribunal may give a verbal judgement at the end of the hearing, but more often, the decision is sent in writing

After the hearing

If the claim’s dismissed, it’s usually the end of the matter
If the decision goes against the employer, the tribunal will then move on to deciding the remedy. Sometimes this is handled in a separate remedy hearing.

Appeals

Decisions can be appealed to the Employment Appeal Tribunal (EAT), but only on narrow grounds. Someone can appeal if:

The tribunal made a mistake in law
The tribunal reached a decision with no evidence to support it

What happens if the tribunal rules against you

When a tribunal reaches its decision, there are several possible outcomes. Even if you’ve strongly defended your case, you need to understand the potential consequences.

If you win…

The case is dismissed
No compensation is awarded
You may apply for costs if the claim was unreasonable (though cost awards are rare

If you lose…

The tribunal will decide on a remedy which usually falls into one of the following categories

Compensation

Unfair dismissal: A basic award (like redundancy pay based on age, pay service) plus a compensator award (covering actual losses such as wage losses).

Discrimination and whistleblowing: Awards are uncapped and can include financial loss and ‘injury to feelings’ payments.

Wage disputes/working time claims: Compensation for lost pay, unpaid holiday and unlawful deductions.

Reinstatement or reengagement

It’s rare, but the tribunal can order you to give the employee their job back (or a comparable role).

If you refuse, you may have to pay extra compensation.

Recommendations

In some discrimination cases, the tribunal may recommend changes to your workplace practices or policies.

How much can it cost?

Discrimination awards can run into six figures — with recent cases exceeding £250,000
The average cost to defend a discrimination claim is around £15,000-£25,000, even if you win
Compensation for unfair dismissal is capped (currently just under £120,000), but discrimination and whistleblowing awards are unlimited.

Citation: Here to help you prevent and manage tribunal claims

It’s stressful and time-consuming to face an employment tribunal. But with the right support, you can reduce your risk, protect your business, and face any claim with confidence.

The first step is prevention

Get 24/7 expert HR and employment law advice from qualified advisers.
Make sure you’ve got watertight documentation with contracts, policies, and procedures that are up to date with the latest legal updates.
Train your managers so they can confidently handle disciplinaries, grievances, and dismissals fairly and consistently.

Support if you face a claim

Support to review claims and draft responses on your behalf.
Handle disclosures, bundles, and witness statements so you’re prepared.
If it goes to a hearing, our tribunal experts will be by your side to guide, advise, and represent your business.

Proven results

Citation clients are 93% less likely to face a tribunal compared to the national average.
Citation clients with covered cases were 100% successful at tribunals in 2024.
When claims arise, if you follow our advice, you’ll be backed by our employment advice guarantee.

FAQs

What is the difference between an ET1 and an ET3 form?: The ET1 is the official claim form completed by the employee to introduce their case to the employment tribunal. Once the tribunal accepts the claim, they send a copy to the employer. The employer must then submit their formal defence using the ET3 response form within 28 days. Failing to submit the ET3 form on time can result in the tribunal issuing a default judgment against your business without a hearing.
What is the difference between a basic award and a compensatory award?: When an employee wins an unfair dismissal claim, the financial remedy usually consists of two distinct elements: 1. The basic award: This is a fixed statutory calculation identical to statutory redundancy pay. It is based on the employee’s age, weekly pay, and total years of continuous service. 2. The compensatory award: This element is designed to cover the actual financial losses suffered by the employee as a direct result of the dismissal. It primarily accounts for lost wages, lost pension contributions, and the loss of statutory employment rights while they look for alternative work.
What happens during the disclosure stage of a tribunal?: Disclosure is a formal phase in which both parties must exchange copies of all documents relevant to the dispute. This process is governed by strict rules of transparency. You must disclose all text messages, emails, meeting notes, contracts, and internal policies related to the case, even if the evidence supports the employee's argument. These documents are eventually compiled into a unified file called the hearing bundle.
Can an employer recover their legal costs if they win the case?: While it is possible to apply for a costs order if you win, the employment tribunal is fundamentally a "no-costs" jurisdiction. This means that both parties are generally expected to pay their own legal fees regardless of the outcome. The judge will only award costs against an employee in rare circumstances, such as when the claimant acted vexatiously, abusively, or fundamentally unreasonably in bringing the case forward.
What are case management orders, and how do they affect the hearing?: Case management orders are legally binding directions issued by an employment judge to dictate how the case will proceed to trial. These orders can be issued alongside the initial claim form or established during a preliminary hearing. They typically set strict timetables for the disclosure of documents, the preparation of the hearing bundle, and the final exchange of signed witness statements. They may also direct either party to provide additional details regarding their defence or require specialised medical evidence.
On what grounds can an employment tribunal decision be appealed?: You cannot appeal a tribunal decision simply because you disagree with the judge's conclusion or dislike the outcome. An appeal to the Employment Appeal Tribunal (EAT) is only permitted on specific, narrow grounds of law. You must prove that the original tribunal made a distinct mistake in how it interpreted legislation, failed to follow a binding legal precedent, or reached a conclusion that was completely unsupported by the evidence presented.

Take the stress out of the tribunal process

Facing a tribunal is one of the most challenging experiences a business owner can go through. It’s time-consuming, emotionally draining, and potentially very expensive. But you don’t have to face it alone.

The best way to handle a claim is to make sure it never happens in the first place through robust HR and employment law support. However, if a claim is already in motion, having expert backing is your best line of defence.

From drafting your response to standing by your side at the hearing, our Employment Tribunal services are designed to give you total peace of mind. If you’ve received a claim or you’re worried about a potential dispute, don’t leave it to chance. Get in touch with our team today, and let’s protect your business together.