10 February 2011

Workplace dispute reforms proposed by Government

On 28 January the Government announced the next steps in its review of employment laws. New proposals that seek to improve the way in which workplace disputes are resolved have been published, alongside a new  "Employer's Charter".

 The key proposals set out in a consultation document are:

• increasing the qualifying period for employees to be able to bring a claim for unfair dismissal from one to two years;
• encouraging parties to resolve disputes between themselves as early as possible - requiring all claims to be lodged with Acas (Advisory, Conciliation and Arbitration Service) in the first instance to allow pre-claim conciliation to be offered. This also includes introducing settlement offers to encourage parties to make reasonable offers of settlement to avoid Tribunal hearings and encouraging parties to consider other forms of early dispute resolution such as mediation;
• extending the jurisdictions where judges would sit alone to include unfair dismissal, introducing the use of legal officers to deal with certain case management functions and taking witness statements as read;
• providing Employment Tribunals with a range of more flexible case management powers so that weaker cases can be dealt with in a way that does not mean disproportionate costs for employers.

 There is also a commitment for the Ministry of Justice to consult separately on introducing fees for Employment Tribunal cases and appeals, to ensure that users contribute towards the cost of running the system.

 The consultation document also includes proposals to:

• Increase the provision of information - aimed at reducing speculative claims, this would require more information on the nature of the claim being made and to include a statement of loss. It will help parties to decide whether to agree a settlement offer or proceed to a Tribunal hearing;
• Withdraw the payment of expenses - encouraging parties to either settle earlier or reduce the number of witnesses they call; and
• Introduce financial penalties for employers found to have breached rights - aimed at encouraging greater compliance from employers and thus a reduction in the number of Tribunal cases.

 The intention of the Charter is to raise awareness and give clarity amongst employers on what they can and can't do when managing their staff and covers a wide range of employment law issues.

 The joint BIS and Tribunals Service consultation document can be found here. The consultation will run from the 27 January to 20 April 2011.

The Employer's Charter can be found here.