Employment Law Birmingham News

Employment tribunal changes have come into effect from Friday 6th April as part of the Government's employment law reform measures.

There were 218,000 tribunal claims in 2010-11, a rise of 44% since 2008-09, with each business spending nearly £4,000 per claim on average defending itself. There is an additional average cost of a £1,900 to the taxpayer per claim.

The changes mean that from 6th April:

• The qualifying period for claiming unfair dismissal will rise from one to two years.
• Judges will be able to sit alone in unfair dismissal cases.
• Witness statements can be provided in writing as opposed to the current rules where a witness reads their own statement out aloud.
• The maximum level for costs awarded to businesses winning a vexatious tribunal claim will rise from £10,000 to £20,000. Deposit orders required by claimants when a judge determines that a part of claim is unmerited will increase from £500 to £1,000.

The Government has also announced its intention to publish the average value of awards and time taken to reach a hearing. Included in the guidance for tribunal application and response forms, this information will provide all parties with a greater understanding about what to expect from the tribunal process before they enter the system.

Workplace relations body Acas has called for more employers to consider using mediation at work to help resolve disputes and avoid potentially costly and stressful employment tribunal claims. The call comes after a study carried out by Acas in 2011 found that just 5% of employers have used mediation to solve a workplace dispute.

The study also revealed that despite low take up by employers, 64% were aware of mediation, and around three quarters of businesses agreed that mediation is a good tool for resolving disputes at work, with half agreeing that mediation produces "win-win" solutions that leave both parties satisfied.

Andrew Wareing. Director of the Acas service responsible for resolving disputes between individuals and their employers, said:

"Workplace conflict can damage an organisation's effectiveness. Last week's announcement that the Government is funding a pilot scheme for two regional mediation networks will help raise awareness among employers about how mediation can help benefit their business.

“Mediation helps resolve disputes quickly and effectively, minimising distress and cost as well as preserving workplace relationships. Acas successfully resolved 90% of the mediation cases we were involved in over the last year alone."

The Government has announced the next steps in its comprehensive review of employment laws.

New plans to improve the way in which workplace disputes are resolved have been published alongside an “Employer’s Charter” – the measures are designed to give businesses more confidence to take on workers and support growth.