As part of the Department of Trade and Industry's initiative to simplify employment law, the Secretary of State for Trade and Industry, Alistair Darling, is overseeing a 'root and branch review' of the statutory dispute resolution procedures.
The Employment Act 2002 (Dispute Resolution) Regulations 2004 came into force in October 2004 and require employers and employees to operate statutory minimum disciplinary, dismissal and grievance procedures. The legislation aimed to give those involved the chance to settle complaints without recourse to litigation. However, the procedures have been widely criticised for being poorly drafted and overly complex.
A recent survey by the Chartered Institute of Personnel and Development reported that 29 per cent of employers believe that disputes are less likely to be resolved informally since the introduction of the legislation and 42 per cent of employers are now more likely to seek legal advice to make sure they do not fall foul of the law.
Firstly, Mr Darling asked Mr Michael Gibbons to carry out an independent review of the options for simplifying and improving all aspects of employment dispute resolution, in order to make the system work better for employers and employees. This recommended that the statutory dispute resolution procedures be repealed and replaced with non-prescriptive guidelines on grievances, discipline and dismissal.
A consultation has now been launched which covers a series of wide-ranging questions. This asks if there should be:
- a reformed tribunal system, with simplified processes and timings;
- an invitation to the CBI, TUC and other representative organisations to produce guidelines aimed at encouraging and promoting the early resolution of disputes in the workplace
- incentives for employers to make reasonable attempts to resolve a dispute early; and
- a redesigned application process to tribunals so that potential claimants access the system through a new advice service and receive advice on alternatives when doing so
The consultation document is available at http://www.dti.gov.uk/consultations/page38508.html. The consultation closes on 20 June 2007.
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