Employment Tribunal vs County Court: Which Forum for Employment Disputes?
Employment tribunals are the specialist forum for most statutory employment claims; the County Court handles contractual claims and some overlap areas. This comparison explains jurisdiction, costs, and time limits.
Overview
When an employment relationship breaks down, potential claimants face an important choice: should the claim be brought in the Employment Tribunal (ET) or the County Court? The answer depends on the nature of the claim. The ET has exclusive jurisdiction over most statutory employment rights — unfair dismissal, discrimination, whistleblowing detriment, and unlawful deduction from wages. The County Court has jurisdiction over breach of contract claims (including wrongful dismissal) and some claims that fall outside the ET's jurisdiction. Time limits are critically different: most ET claims must be brought within three months of the act complained of (subject to ACAS Early Conciliation stopping the clock), while the County Court's Limitation Act 1980 limitation period for contract claims is six years. Getting the forum wrong can be fatal to a claim.
Side-by-Side Comparison
Employment Tribunal (ET)
Pros
- No issue fee — bringing a claim is free (fees were abolished following R (Unison) v Lord Chancellor [2017])
- Specialist tribunal — Employment Judges have deep expertise in employment law
- ACAS Early Conciliation is mandatory before issuing — free conciliation may resolve the dispute without a hearing
- Can award uncapped compensation for discrimination claims and up to £115,115 (2024/25 cap) for unfair dismissal
Cons
- Strict 3-month time limit from the act complained of (ERA 1996 s.111(2)) — missing the deadline is usually fatal
- Adverse costs orders are rare but possible in cases of unreasonable conduct — no automatic costs recovery even if you win
- ET jurisdiction is limited — contract claims over £25,000 must go to the County Court
- Cases can take 12–24 months to reach a final hearing
Best For
Unfair dismissal, constructive dismissal, discrimination, whistleblowing detriment, unlawful deduction of wages, statutory redundancy pay disputes — all within 3 months of the act.
County Court
Pros
- 6-year limitation period for breach of contract (Limitation Act 1980 s.5) — much more time to bring a claim
- No upper limit on contract claims — high-value wrongful dismissal or restrictive covenant claims are appropriate here
- Can grant injunctions — e.g. to enforce post-termination restrictive covenants or restrain breach of confidentiality
- If you win, you can recover fixed or assessed legal costs (unlike the ET)
Cons
- Court fees apply — 5% of claim value for claims between £5,000 and £10,000; proportionate above
- Adverse costs risk — losing party may be ordered to pay the winner's legal costs above the small claims threshold
- Less specialist than the ET for employment matters — legal principles applied strictly
- Cannot hear the main statutory employment claims (unfair dismissal, discrimination) — that jurisdiction belongs to the ET
Best For
Wrongful dismissal claims over £25,000, enforcement of post-termination restrictive covenants, breach of contract claims where the 3-month ET time limit has been missed (if the contractual claim is still within 6 years), and injunctive relief.
Key Differences
Our Recommendation
For statutory employment claims (unfair dismissal, discrimination, whistleblowing), the ET is the correct and only forum — act quickly as the 3-month limit is strict. For wrongful dismissal or contractual claims over £25,000, or where the ET time limit has been missed but a contractual claim survives, use the County Court. In borderline cases involving both statutory and contractual claims, the ET can hear the contractual element up to £25,000 alongside the statutory claim — this avoids parallel proceedings. Always contact ACAS before issuing an ET claim.