Changeworks Communications - �Government plans to resolve disputes are a start, but by no means should they be the end''

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December 19, 2011 - The latest proposals on resolving workplace disputes in response to the 'Red Tape Challenge' might offer a much needed boost to businesses but the government needs to go much further and do it quickly, said Michael Slade, Managing Director of employment law specialist Bibby Consulting & Support.

The government has already announced that the service qualification period for employees to pursue unfair dismissal claims will increase from one to two years in April 2012.

Following the leaked Beechcroft Report, commissioned by the Prime Minister, which recommended a 'Compensated No Fault Dismissal System', the government appears to have taken this recommendation on board and is considering a similar stance for small businesses with fewer than 10 staff.

Although there has so far been no specific guidance on how this is to happen, Slade said: �It is a common complaint from SMEs that they are expected to conform to the same regulations as big business, despite the limited resources available to them. By simplifying regulation it should help small businesses to concentrate on development and expansion in the tough economic climate.�

The government�s proposals aim to resolve disputes without the need of an employment tribunal and include 'protected conversations' applicable to all workers, regardless of age, where employers could have difficult conversations with their staff about performance, free from the threat of litigation.

Slade said: �Many employers are concerned about approaching employees for fear of saying the wrong thing and it is being used against them. The government proposes that protected conversations would allow the employer the opportunity to discuss issues such as performance, or retirement age, without being taken to court. However, employers should still tread carefully because such a conversation would not exempt employers from discrimination and equality law.�

The government intends to encourage dispute resolution through in-house mediation schemes with potential cases to be sent to ACAS. Only if the dispute is not settled would both parties progress to a tribunal. Also, the government is looking to reform the tribunal system to include a streamlined procedural code and a rapid resolution for low cost, straightforward claims, which could deliver a decision without the need for a full hearing. And it has been announced that the government will review the consultation periods employers are legally bound to when making more than 100 employees redundant. It is hoped that this will help employers to take swifter action and avoid protracted consultation exercises.

Michael Slade said: �While we support these changes, much more needs to be done to redress the imbalance of employment legislation which employers have been battling against for the last 15 years. More action needs to be taken, and quickly.�

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