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Dispute Resolution - The Way Forward- 01/04/2009
On 6 April 2009 the Employment Act 2002 (Dispute Resolution) Regulations 2004 will be repealed. They will be replaced by a new framework based on provisions of the Employment Act 2008 which aim to provide employees and employers with greater flexibility to deal with workplace discipline and grievance issues in a way which suits them best.
The changes follow an independent review, carried out by Michael Gibbons, a member of the Department for Business, Enterprise and Regulatory Reform’s Better Regulation Commission, of the workings of the statutory dispute resolution procedures, which were introduced in October 2004. The procedures were intended to reduce the number of Employment Tribunal (ET) claims, but the review found that they had led to workplace disputes becoming formalised, with lawyers becoming involved at an earlier stage in proceedings than had previously been the case.
The Act provides for the complete repeal of the statutory dispute resolution procedures and related provisions dealing with procedural unfairness in dismissal cases. In their place will be a revised Advisory Conciliation and Arbitration Service (ACAS) Code of Practice supported by non-statutory guidance aimed at encouraging employers and employees to resolve issues both earlier and informally. It will not apply to dismissals due to redundancy or the non-renewal of fixed-term contracts on their expiry.
In addition, the Act will:
- confer on ETs discretionary powers to increase or decrease awards by up to 25 per cent if parties have failed reasonably to comply with a relevant statutory code;
- amend ETs’ powers by which they may reach a determination without a hearing;
- allow ETs to award compensation for financial loss in certain types of monetary claim; and
- make changes to the law relating to conciliation by ACAS, removing the fixed periods for conciliation.
Employers are reminded that until the law is changed, they must follow the existing statutory dispute resolution procedures. Also, there are transitional provisions that apply to cases that are ongoing as at 6 April.