Key takeaways
The time limit (also referred to as the limitation period) for a claim about dismissal starts with the last day of employment. However, the underlying dispute usually starts before that date, meaning some claimants will start Acas EC before their dismissal takes effect (e.g., shortly before a dismissal hearing or during a notice period).
In Raison v DF Capital Bank Ltd, the EAT has expressly confirmed that any part of an Acas EC period which occurs prior to the limitation period commencing will not count towards an extension of time. At the same time, the EAT also expressed its decision as being that the time limit is extended by the number of days in the EC period that occurred after the date dismissal takes effect.
The judgment treats these two statements as synonymous. However, as James Brown (Knowledge Lawyer) explains in this article, we believe that the two statements are different. The first (correctly) includes the date of the dismissal whereas the second (incorrectly) excludes it. On the facts in Raison, we believe this led the EAT to miscalculate the extension of time by one day.
The inconsistency between the EAT's two statements could give rise to further disputes on how to calculate extensions of time limits, increasing costs and uncertainties for employees and employers alike.
Looking forward, the government is proposing to increase the standard time limit for bringing a claim in the employment tribunal from three to six months. As it stands, there are no proposals to remove the rules on extensions of time for Acas EC.
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