Businesses in the UK have applauded the government’s decision to review the processes for employment dispute resolution.
Last week, the Department of Trade and Industry (DTI) launched a consultation on dispute resolution, offering businesses the chance to have their say on how the procedures could be improved.
The move follows the publication of Michael Gibbons’ report last week, following his commission to conduct an independent review on the issue last December.
Many industry figures viewed Gibbons’ review as a government response to criticism about reforms introduced in October 2004.
According to Richard Smith, employment services director at consultancy firm Croner, the 2004 measures forced employers to implement formal lengthy disciplinary and grievance procedures.
Smith said: “The government’s strict procedures have made the whole dispute resolution process worse, with many more cases now going to costly and prolonged employment tribunals.”
“The decision to undertake a consultation hopefully paves the way for the introduction of more informal approaches to dispute resolution in the workplace, reducing the burden on the employment tribunal service.
“Ultimately, this will help employers better manage conflict in the workplace, untying the shackles that bind UK business, particularly small and medium-sized businesses, in this area and make them more competitive.”
Michael Gibbons commented that, although the 2004 reviews were sound and well-intentioned, they had had ‘unintended consequences’ which outweighed their benefits.
The consultation will ask if there should be a new, swift approach for dealing with straightforward claims without the need for employment tribunals, and whether employers should be offered incentives to make reasonable attempts to resolve disputes early.
The consultation, which seeks views from businesses, individuals, trade unions and representative bodies, will close on June 20 2007.
© Crimson Business Ltd. 2007
