Unnecessary employment tribunals could become a thing of the past after the government announced a cash boost for an employment relations service.
Employment relations minister Pat McFadden announced today that Acas will receive £37m to boost its helpline and advice services, saving businesses and employees an estimated £175m a year.
The move came as part of new measures to simplify the resolution system, introduced as part of the Employment Bill currently before the House of Commons. If implemented, the Bill would help to cut red tape for businesses and deliver quicker decisions on more straightforward claims, the government claimed.
Acas said the extra funding will enable it to offer better services at any stage of a dispute, to make sure it is ‘never too late to choose an informal resolution’.
The service aims to be available throughout the UK by 2009, with a pilot programme, attempting to conciliate disputes which look set to go to tribunal, planned over the next year.
“Early action can often prevent the need for tribunals,” said McFadden. “We want to move from the current overly rigid and legalistic process to one where there is more conciliation between employers and employees.”
He added that the new system would strike a balance between ensuring workers can protect their rights, while helping them to resolve disputes as early as possible.
Ed Sweeney, Acas chair, said he was delighted by the news.
“The investment will enable us to increase our effectiveness and spread the benefits more widely,” he said.
© Crimson Business Ltd. 2008
