Partner Article

New changes will help businesses solve employment law disputes

The government has introduced new changes to employment law which could help cut costs for businesses.

An “Early Conciliation” scheme is now available for anyone lodging a Tribunal claim. The scheme should help businesses resolve disputes before claims and expensive legal proceedings are initiated.

Parties to a Tribunal claim will now have a duty to engage with ACAS, the Advisory, Conciliation and Arbitration Service.

This means that parties to a Tribunal claim will have to deal with ACAS prior to the issue of a claim. The organisation will then take the appropriate steps to resolve the dispute before a claim is submitted.

ACAS will offer to conciliate between employer and employee before the issue of proceedings. Claims will only be presented to an Employment Tribunal once an Early Conciliation Certificate has been issued by ACAS. This certificate confirms contact has been made with them.

Andrew Newton, employment lawyer at Maxwell Hodge said: “The new early conciliation scheme gives employers and employees the opportunity to negotiate a quick settlement before potentially lengthy and expensive court proceedings are initiated. This is good news for both employees and employers and could have a dramatic effect on the Tribunal system and the relative costs involved.

“The scheme offers a solution in particular to businesses who suspect that an employee will be willing to see a claim through, therefore Early Conciliation may offer the business an opportunity to save time and money. The employee may be more willing to settle, and for a lower amount to avoid incurring the costs of the issue.”

Employers or claimants may decline to engage with the ACAS process or fail to agree on a settlement. In this case proceedings will move forward to an Employment Tribunal.

For more information on employment law contact Maxwell Hodge on 0151 227 4545 or on www.maxweb.co.uk

This was posted in Bdaily's Members' News section by Dan Minchin .