Partner Article

New plans for workplace dispute resolution revealed

The Business Secretary is set to announce new plans to allow quicker resolution of workplace disputes.

At the second reading of the Enterprise and Regulatory Reform Bill, Vince Cable will set out plans to introduce measures to boost business confidence and ease the handling of workplace disputes through the facilitation of settlement agreements between employers and employees.

Dr Cable believes that the bill is is an important part of the Government’s plan for long-term growth, and will foster enterprise, support business and create jobs.

He commented: “Settlement agreements are smart, fair and pro-business reforms which deliver results for employees and employers. It empowers employers by enabling them to keep their workforce flexible and encouraging alternative ways of solving workplace problems rather than resorting to a tribunal. But crucially it does so in a way that keeps the necessary protections for employees in place.

“Our proposed measures and guidance will achieve this objective. Making this approach simple to use will encourage employers to take on staff in the knowledge this there is an effective mechanism for dealing with serious problems if they occur.”

Under the new proposals, employers will be able to offer settlement agreements before a formal dispute arises and will be legally protected from this offer being used as evidence in an unfair dismissal tribunal case. Employees will also continue to enjoy full protection of their employment rights, as they can choose to reject the offer of a settlement agreement and proceed to a tribunal. Evidence from the private sector shows that a sensible compromise can be reached in the majority of cases.

The Government believes that greater use of settlement agreements will make it easier and quicker for employers and employees to end the employment relationship by mutual agreement in a way that protects workers rights but also helps businesses remain flexible.

By making settlement offers and discussions inadmissible in unfair dismissal claims, businesses can be more confident that they will not be used against them at a tribunal.

Employment Relations Minister Norman Lamb added: “There are inevitably occasions when the employment relationship doesn’t work out. Employers have to feel confident in dealing with situations such as where an employee isn’t pulling their weight or where someone is unreliable or even guilty of misconduct.

“In these instances it is sometimes in the best interests of both employee and employer to end the relationship speedily by reaching a settlement. An employee leaving by agreement can do so with their dignity intact.

“The employer secures peace of mind knowing that they will not face expensive tribunal proceedings.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .