Received an Unfair Dismissal Claim — What Employers Need to Know

Opening a letter or email to find an unfair dismissal claim from a former employee can feel like a punch to the stomach — especially if you believe you acted fairly throughout. Take a breath. This document is a formal legal claim submitted to an Employment Tribunal (the specialist court in England, Wales, and Scotland that handles workplace disputes), and while it does require your attention, receiving one does not mean you have already lost.

What does this actually mean?

Your former employee is alleging that you dismissed them in a way that was not fair under the Employment Rights Act 1996 — the main piece of legislation governing dismissal in the UK. To bring this type of claim, an employee generally needs to have worked for you for at least two continuous years (with some exceptions, such as whistleblowing or discrimination-related dismissals, where there is no minimum service requirement).

The claim will have been filed using a form called an ET1 — think of it as the employee's official complaint form. You will need to respond using a form called an ET3, which is your formal response. The Tribunal will use both documents to understand each side of the story.

It is worth knowing that the vast majority of Employment Tribunal claims are either settled before a hearing or withdrawn. Receiving a claim is the start of a process, not an automatic finding against you.

Do you need to act immediately?

Yes — deadlines here are strict and missing them can seriously damage your position. Here is what you need to know:

• You have 28 days to submit your ET3 response from the date shown on the notice sent to you by the Tribunal. This deadline is firm. If you miss it, the Tribunal can issue a default judgment against you without hearing your side at all.
• Check whether ACAS Early Conciliation has already taken place. Before filing a Tribunal claim, the employee is required to contact ACAS (the Advisory, Conciliation and Arbitration Service) to explore early settlement. A certificate number on the claim form confirms this happened. You may still be contacted by ACAS to explore settlement at any stage.
• Do not ignore any correspondence from the Tribunal. Even if you think the claim has no merit, failing to respond formally can lead to automatic costs or judgments against you.

Your next steps

1. Read the ET1 carefully. Note exactly what the former employee is claiming — unfair dismissal, a specific amount of compensation, or both. Understanding their case helps you build yours.
2. Gather your documentation. Collect all relevant records: the employment contract, any written warnings, meeting notes, investigation records, the dismissal letter, and any appeal correspondence. The strength of your case often comes down to your paper trail.
3. Note the 28-day deadline for your ET3. Write it down somewhere visible. If you need more time, you can apply to the Tribunal for an extension, but this is not guaranteed.
4. Do not contact the former employee directly. All communication should go through the Tribunal or ACAS. Direct contact could be seen as inappropriate and may complicate matters.
5. Consider whether early settlement is realistic. Settling through ACAS — known as a COT3 agreement (a legally binding settlement brokered by ACAS) — can save time, money, and stress for both sides. It does not mean admitting liability.
6. Prepare a clear account of events. Write down, in plain English, why you dismissed the employee, what process you followed, and what steps you took to be fair. This will form the backbone of your defence.

When should you speak to a solicitor?

You do not legally need a solicitor to respond to an Employment Tribunal claim, but professional advice is strongly recommended in most cases. Consider speaking to an employment solicitor as soon as possible if:

• The claim involves discrimination (such as age, race, sex, or disability) alongside the unfair dismissal — these carry uncapped compensation, meaning there is no upper limit on what you could be ordered to pay.
• The employee is claiming a large sum or loss of earnings over a long period.
• You are unsure whether your dismissal process followed the correct steps under the ACAS Code of Practice on Disciplinary and Grievance Procedures.
• You do not have HR support in-house and feel out of your depth preparing a formal legal response.
• The 28-day deadline is approaching and you have not yet started your ET3.

Employment solicitors who specialise in this area will quickly be able to tell you where you stand and what your options are.

If you are not sure where to start, CaseBridger is a free tool that gives you instant AI-powered guidance tailored to your specific situation and can help you find a qualified employment solicitor near you — no jargon, no commitment, just a clearer picture of what to do next.