Forum approves of dispute resolution review

The Forum of Private Business has welcomed the announcement by Secretary of State that there will be a 'root and branch' review of Government support for resolving disputes in the workplace.

The Forum of Private Business (FPB) has today welcomed the announcement by Secretary of State, Alistair Darling, that there will be a 'root and branch' review of Government support for resolving disputes in the workplace.

It comes as the FPB releases the results of a survey showing that only a minority of smaller firms are using the appeals service of the Advisory, Conciliation and Arbitration Service (ACAS).

The study of 500 small and medium sized firms showed that just 5% of respondents had used the appeals service, whilst 95% hadn't.

Although it also found that across all 500 firms surveyed, 31% of companies had used the advisory services of ACAS.

Nick Goulding, Chief Executive of the FPB, said; "In practice, although ACAS generally has a good reputation, these services are of little value to small employers.

It is deemed that they come too late in the process and are unlikely to provide an effective resolution, plus they can sometimes delay the process and increase the cost." Mr Darling announced to Parliament that he has asked Michael Gibbons to review the options for simplifying and improving all aspects of employment dispute resolution, to make it work better for employers and employees.

The FPB recommends a change in the law that would place the independent appeals service of ACAS on a statutory basis, meaning its conclusions would be binding.

The FPB thinks the use of ACAS should void any previous procedural irregularities.

The process should exclude external legal representation for either party, and any appeal would be to the employment appeals tribunal (EAT) for interpretation of the law.

The same rules should govern applications to EAT.

Mr Goulding feels that approach would; "significantly reduce the costs and problems small firms associate with tribunals." "It would maintain genuinely independent adjudication for employees of small firms and their employers.

It would reduce the expense, and increase the speed of resolutions in such cases, and also decrease antagonism and encourage a more collaborative approach to resolving disputes." Mr Goulding said the review must be part of a broader move to simplify employment law.

"This review must be only part of a much larger process.

The government continues to make pledges on simplifying and cutting regulation.

If it wants to seriously reduce the number of workplace disputes, it must make employment law the first port of call.".

Back to top