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News Release from: BERR (Department for Business, Enterprise and Regulatory Reform)
Edited by the Manufacturingtalk Editorial
Team on 03 June 2004
New laws aim to resolve disputes before
tribunals
Almost three-quarters of UK manufacturing and construction employers worry about the financial implications of being taken to an employment tribunal.
Almost three-quarters of manufacturing and construction employers worry about the financial implications of being taken to an employment tribunal and more than six in ten are concerned about the damage it could do to their business reputation, according to new research carried out for the UK's Department of Trade and Industry In addition, 73% of managers in this sector admit they are worried about the effect a tribunal would have on their own stress levels with 36% citing this as a major headache
This article was originally published on Manufacturingtalk on 30 Aug 2002 at 8.00am (UK)
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Figures from the Employment Tribunal Service show that last year tribunals dealt with 98,000 claims based on work disputes, ranging from problems over pay and conditions, to racial and sexual harassment.
But research shows that in more than a third of those cases the individual and the manager had not discussed the problem at all before approaching an employment tribunal.
The survey, carried out among 500 small and medium sized UK businesses re-enforces the need for a new employment law which comes into force in October making it mandatory for all employers to have minimum dismissal, disciplinary and grievance procedures in the workplace.
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The regulations will place new responsibilities on employers and employees to discuss workplace disputes when and where they happen in a bid to resolve them before going to an employment tribunal, thereby avoiding unnecessary litigation.
Employees will usually be required to raise these problems with their employers before they can take a claim to an employment tribunal.
Employment Relations Minister Gerry Sutcliffe said: "We are introducing these new regulations to provide a framework for employers and employees to handle disputes in the workplace, ensuring that employment tribunals take their proper place as the backstop for individual employment rights rather than the first port of call.
"Employment tribunals have a vital role to play ensuring individual employment rights are not abused.
But it is clear that there are too many cases which could be resolved in the workplace ending up at tribunals.
This costs time and money, creates unnecessary stress for both parties and slows down the tribunal system.
Our aim is to improve this situation for everyone." Other findings from the SME survey include: * Two-thirds (65%) of manufacturing and construction businesses worry about the damage an employment tribunal could do to workplace morale; * An overwhelming 91% said maintaining good staff morale was important to them as a business; * Almost four in ten (38%) of those questioned in this sector had experienced a workplace dispute; * Of these, 78% suffered up to five disputes in the last five years, indicating that businesses are not learning how to handle problems through previous experience; * Only 24% in this sector correctly estimated the average cost of an employment tribunal to a business.
Minister Sutcliffe said: "An employment tribunal claim costs an employer an average of GBP 2,000 in management time and legal fees.
"Many businesses already have dismissal and disciplinary procedures in place, but for those that don't, the new regulations will help ensure that they avoid unnecessary costs and stress which makes for a better workplace and higher productivity.".
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