Resolving Disputes
On 21st March 2007 the Government published the outcome of an independent review of the employment dispute resolution system in Great Britain, led by Michael Gibbons.
The Government welcomed the Gibbons Review and published ‘Resolving disputes in the Workplace - A consultation‘ setting out measures for taking the Gibbons Review forward. The consultation sought views on a package of measures to help solve employment disputes successfully in the workplace so that:
- Productivity is raised through improved workplace relations
- Access to justice is ensured for employees and employers
- The cost of resolving disputes is reduced for all parties
- Disputes are resolved swiftly before they escalate
Responses to the consultation (which closed on 20 June 2007) enabled the Government to identify key legislative reforms for inclusion in the Employment Bill which was published on 7 December 2007. This provides for the complete repeal of the statutory dispute procedures. It also provides for repeal of the existing law on the role of procedure in unfair dismissal. The Bill is subject to parliamentary consideration and depending on the outcome of that process the Government hopes that repeal will take place in April 2009.
In addition to the Bill, the Government will be introducing other non legislative measures to improve and simplify employment dispute resolution. The Government is providing Acas with up to £37M over 3 years to boost its helpline service and its ability to offer early conciliation for problems which are potential employment tribunal claims.
Details of all these measures are set out in the Government response to the consultation.
Guidance for employees on the current dispute resolution system can be found on Directgov, guidance for employers can be found on Business Link.
What happens from April 2009?
- Subject to the completion of the parliamentary process, on 6 April 2009 the Employment Act 2002 (Dispute Resolution) Regulations 2004 will be repealed and will be replaced by a new framework based on the provisions of the Employment Act 2008.
- From 6 April 2009, the mandatory “three-step” processes for disciplinary and dismissal procedures raised by an employer and for grievances raised by an employee will be repealed. Employment tribunals will decide cases on the basis of what is ‘fair and reasonable’ and a revised Acas Code of Practice and non-statutory guidance on disciplinary and grievance procedures will establish the principles of what an employer and employee should do. Employment tribunals will have discretionary powers to adjust awards by up to 25% if an employee or employer has acted unreasonably in not following the principles in the new Acas Code.
- As a result, employees and employers will have greater flexibility to deal with workplace discipline and grievance issues in a way which suits them best.
- The Government is investing up to £37M in additional resources for Acas to provide an enhanced helpline with extended opening hours and to offer employers and employees early conciliation for problems which are potential employment tribunal claims.