Better Dispute Resolution

Less than 2½ years after their introduction, the Statutory Dispute Resolution Procedures have been formally reviewed and a number of recommendations suggested as a result. The legislation was drafted with the intention of encouraging both employer and employee to settle their disputes informally without the need to burden an already overstretched tribunal system. Minimum standards of disciplinary and grievance procedures were introduced (including a 3-step dismissal procedure) in an attempt to encourage both parties to resolve their differences.

In practice, however, it has had the reverse effect with complaints of disputes actually escalating; more management time taken up as a result; greater administration; and the regulations seen as nothing more than a prelude to tribunal claims being instigated. The review estimated that the average cost to a  business of defending a tribunal claim has now risen to over £9,000 with 42% of those businesses surveyed reporting having had an employment dispute in the last 5 years.

The key recommendation of the review was to repeal the statutory procedures and to replace them with a much simpler process; reliant on the use of more mediation and a redesigned employment tribunal application system. Further  recommendations included an easier method of settling monetary disputes; a free early dispute resolution service; more discretion given to tribunal chairs to throw out weak and vexatious claims, and to base tribunal awards and cost orders on the reasonableness and behaviour of the two parties concerned.