From 1st December 2025, a significant change is coming to the employment dispute landscape: the maximum ACAS Early Conciliation (EC) period will double from six weeks to twelve weeks. This change has important implications, especially for small and medium-sized businesses.
Under the existing regime, before a claimant can issue a claim at an employment tribunal, they must first notify ACAS and begin early conciliation. ACAS appoints a conciliator to engage with both sides, seeking a resolution. The law currently allows this process to last up to six weeks, although either party can end it sooner. Once conciliation ends (whether by agreement or not), ACAS issues a certificate that allows a claimant to proceed to tribunal. During the conciliation period, the normal time limit (“the clock”) for bringing a tribunal claim is paused.
The Employment Tribunals (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2025 will come into force on 1st December 2025, extending the maximum EC period to 12 weeks for all disputes submitted on or after that date. The government’s motivation is twofold: to ease pressure on ACAS, which is seeing growing demand and capacity constraints, and to give more time for meaningful negotiation, especially as disputes become more complex.
Employers and legal experts have voiced concern over long delays in both the conciliation process and tribunals. Under the current six-week window, there have already been reports that ACAS can take several weeks to allocate conciliators. This leaves very little time for negotiation before the certificate is automatically issued. Meanwhile, employment tribunals themselves face a growing backlog as almost 50,000 cases were awaiting resolution at the end of 2024.
For SMEs, the extension brings both opportunity and risk. On the upside, there is more time to try to settle disputes before escalating to costly tribunal litigation. This could potentially save management time, legal fees, and reputational risk. However, the longer conciliation window also means greater uncertainty. Employers may face prolonged exposure to claims; incidents that took place months ago might still be within reach.
Additionally, because the EC process still pauses the time limit for bringing a tribunal claim, this change could stretch the effective window for certain claims (especially unfair dismissal) considerably. That makes clear and accurate record-keeping more crucial than ever.
So how can SMEs prepare? Here are some practical steps:
The doubling of ACAS’ early conciliation period represents a clear shift in how workplace disputes may be resolved. For SMEs, it can be a chance to settle more complex issues amicably, as well as a call to improve internal processes. By preparing now, businesses can turn a potentially riskier landscape into an opportunity for better dispute management.
To find out more information or to discuss managing employee disputes, please get in contact with our team of experts.
T: 0330 107 1037
LinkedIn: High Performance Consultancy