New move to settle work disputes

The number of tribunal applications has been rising

Official procedures to deal with disputes at work could soon be a must for all companies, no matter how small.

The government has proposed a new compulsory three-stage consultation procedure to make sure problems are discussed between staff and employers.

The aim of the new measures is to reduce the number of employment tribunals held every year in the UK.

The number of applications made for a tribunal has risen from 103,000 in 1999/2000 to about 112,000 in 2001/02.

Broad welcome

"Disputes at work are expensive, stressful and disruptive for both employers and employees alike," said Employment Minister Gerry Sutcliffe.

There have been too many examples of employees using the threat of court action against employers John Cridland, CBI

"Early, constructive discussion can produce solutions before problems escalate and working relationships break down."

Companies who sack workers without following the new process will automatically face an unfair dismissal ruling.

The Confederation of British Industry (CBI) welcomed the measures.

"There have been too many examples of employees using the threat of court action against employers," said CBI deputy director-general John Cridland.

"Even when firms are completely guiltless, they often pay up rather than go through an expensive and time-consuming legal process."

The TUC also praised the reforms, although it warned there was a danger that good grievance procedures which already exist in some firms could end up being watered down.

'Extra burden'

However, legal experts cast doubt on whether the new proposals would make any difference.

"Grievances are hardly ever resolved to anyone's satisfaction when brought by an employee," David Bradley, head of employment law at law firm DLA, told BBC Radio Five Live.

"Experience shows that employees feel that grievances aren't dealt with properly in their eyes.

"I don't think (the new proposals) will bring a discouragement of people who would otherwise bring claims under the current regime."

He also noted that the measures had the potential to create an "extra burden" for small businesses.

"It will affect small employers. Large employers already have processes that are in excess of the minimum standards that are being introduced."