Last amended by Enterprise and Regulatory Reform Act 2013 in 2013. Introduced mandatory ACAS early conciliation before a claim may be brought and provided for financial penalties against employers who breach workers' rights.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Territorial extent: s.47: "This Act does not extend to Northern Ireland." The Act therefore applies in England, Wales and Scotland.
Source: legislation.gov.uk extent data (E+W+S, see s.47)
Summary
The Employment Tribunals Act 1996 provides the framework for the employment tribunal system in Great Britain. It establishes employment tribunals (renamed from 'industrial tribunals' in 1998) to determine the wide range of statutory employment claims — unfair dismissal, discrimination, unlawful deductions from wages, redundancy payments, and many others — and the Employment Appeal Tribunal (EAT), which hears appeals from the tribunals on points of law. It deals with the tribunals' composition (an employment judge sitting alone, or with lay members), their procedure and remedies, conciliation through ACAS, and enforcement — including financial penalties against employers who fail to pay tribunal awards.
Key Points
- Establishes employment tribunals (formerly industrial tribunals) and the Employment Appeal Tribunal (EAT)
- Wide statutory jurisdiction — unfair dismissal, discrimination, wages, redundancy, and more
- Composition — an employment judge sitting alone or with lay members (s.4)
- The EAT hears appeals from the tribunals on points of law only (ss.20-21)
- Remedies include compensation, reinstatement, and re-engagement
- Mandatory ACAS early conciliation before most claims can be brought
Parts & Sections
Amendments History
1998 — Employment Rights (Dispute Resolution) Act 1998
Renamed industrial tribunals as employment tribunals and enabled tribunals to be chaired by employment judges sitting alone.
2013 — Enterprise and Regulatory Reform Act 2013
Introduced mandatory ACAS early conciliation before a claim may be brought and provided for financial penalties against employers who breach workers' rights.
Frequently asked questions
- What is the main purpose of the Employment Tribunals Act 1996?
- The Employment Tribunals Act 1996 establishes the legal framework for employment tribunals in Great Britain. It defines their jurisdiction to handle statutory claims such as unfair dismissal, discrimination, and wage deductions. The Act also sets out the composition of these tribunals, their procedural rules, and the remedies available to claimants, including compensation and reinstatement.
- Who sits on an employment tribunal hearing?
- Employment tribunals are typically chaired by an employment judge sitting alone. However, in specified cases, the judge sits with two lay members. This structure was updated by the Employment Rights (Dispute Resolution) Act 1998, which renamed industrial tribunals as employment tribunals and enabled judges to sit alone.
- What is the role of the Employment Appeal Tribunal?
- The Employment Appeal Tribunal (EAT) hears appeals from employment tribunals strictly on points of law. It does not re-hear facts or assess evidence. The EAT operates as a superior court of record and only considers legal questions arising from decisions made under specific employment statutes.
- Do I need to contact ACAS before starting a tribunal claim?
- Before most employment claims can be brought, parties must undergo mandatory early conciliation with ACAS. This requirement was introduced by the Enterprise and Regulatory Reform Act 2013. It aims to resolve disputes without a formal hearing, but if conciliation fails, the claimant can proceed to the tribunal.
- What happens if an employer ignores a tribunal award?
- If an employer fails to pay a tribunal award, they may face financial penalties. These penalties were introduced by the Enterprise and Regulatory Reform Act 2013 to enforce compliance with tribunal decisions and protect workers' rights. The Act provides specific mechanisms for enforcing these financial obligations against non-compliant employers.