Support from an HR consultant in Milton Keynes when a tribunal claim arrives and you need to know exactly what to do next.
The rules around employment tribunal claims have shifted recently, and the financial stakes for small businesses have gone up.
From January 2027, the cap on unfair dismissal payouts is being removed altogether.
If you're running a small business, that single change could expose you to costs that would have been unthinkable a few years ago.
As someone who supports business owners through these situations regularly, I can tell you that early action makes all the difference.
Here's what you need to know and how to protect your position.
The cost of losing a tribunal has changed
Before we get into the process itself, it's worth understanding what's at stake financially.
In 2023/24, the average payout for unfair dismissal stood at £13,749. That alone would sting most small businesses. But discrimination claims carry far higher figures. The average for sex discrimination was £53,403, and for age discrimination it reached £102,891.
Those numbers are averages, not maximums.
And with the unfair dismissal cap being removed from January 2027, the potential exposure is only going to increase. On top of the financial payout, there's the time you personally lose dealing with the process. Hours spent gathering documents, preparing statements, attending hearings. That's time you're not spending on your business.
What actually happens when a claim is made against you
The formal process doesn't start with the tribunal itself. Before an employee can file a claim, they're required to contact ACAS for early conciliation. They can't bypass this step, even if they have no intention of settling.
When ACAS gets in touch with you, treat it as an early signal. It's your first opportunity to resolve the situation before it goes any further.
If conciliation doesn't lead to a resolution, the employee submits their claim to the tribunal. From that point, you have 28 days to file your written response. If you miss that deadline, a judgment can be made against you by default.
Your written response carries real weight. It forms the backbone of your defence, and everything in it needs to align with the evidence you hold. Getting it wrong or being inconsistent at this stage can undermine your entire case later on.
Once both sides have filed, there's a preparation phase where documents, witness statements and a timeline of events are exchanged ahead of the final hearing.
One thing worth being aware of: discrimination and whistleblowing claims now account for 60% of all tribunal cases. These are also the claims that attract the largest payouts. And with hearing dates in some regions being pushed out to 2027 and 2028, a claim could sit over your business for years.
Why handling it yourself is a false economy
I understand the instinct to manage a tribunal claim without outside help. You might want to keep costs down, or you might simply not know where to turn.
But trying to handle it alone almost always ends up costing more. The process is technical, the deadlines are strict, and a single misstep in your written response can weaken your position permanently.
There's also the emotional toll. Running your business while preparing a legal defence is draining. Business owners I work with often tell me that the support with ACAS early concilation, gave them clarity and peace of mind they wouldn't have had otherwise.
The management time alone is significant. Every hour you spend on tribunal paperwork is an hour taken away from your customers, your team and your revenue.
Questions worth asking yourself
If you've received contact from ACAS, or you're concerned a claim might be coming, take a moment to consider these:
🟢Do you have all the documentation you'd need to support your position if a claim was filed tomorrow?
🟢Do you know how the early conciliation process works?
🟢 Do you know whether settling early would cost you less than going to a full hearing?
🟢Are you aware of the current timelines for hearings in your region and what that means for how long a claim could affect your business?
If the answer to any of those is no, that's a good reason to get professional support sooner rather than later.
The earlier you act, the stronger your position will be.
As an outsourced HR consultant providing services in Milton Keynes and the South East, I work with businesses just like yours and I understand how stressful this situation can feel.
If you've had contact from ACAS, get in touch and we can talk it through confidentially. A conversation costs you nothing, but it could save you a great deal. 📱 0781 3084152 or email 📧 daxa@hrresultsltd.co.uk Taking your HR from 'to do' to 'done'.
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