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Extra cash to aid early resolution of workplace disputes

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/34) issued by The Government News Network on 6 February 2008

The Government will today announce up to £37 million to prevent work place disputes unnecessarily going to employment tribunals.

The measures are part of package designed to simplify the dispute resolution system, saving business and employees over £175m a year.

The extra funding, over three years, will allow Acas to boost its helpline and advice services and offer help at any stage of a dispute to make sure it is never too late to choose an informal resolution.

Minister for Employment Relations, Pat McFadden, said:

"The link between successful employment relations and productivity is clear. Early action can often prevent the need for tribunals, bringing enormous benefits to business and employees.

"We want to move from the current overly rigid and legalistic process to one where there is more conciliation between employers and employees.

"This new system will strike a balance between ensuring workers can protect their rights through employment tribunals while helping them to resolve disputes as early as possible."

Acas will conduct pilot programmes over the next year to conciliate disputes which look set to become a claim to the tribunals with the aim of making this service available throughout Great Britain in 2009.

Recent research from the National Institute of Economic and Social Research showed that for every pound Acas spends, over £16 is returned, equating to £800 million a year in benefits to UK companies, employees and the economy.

Acas Chair, Ed Sweeney, said:

"Acas provides a first-class service to employers and employees, based on impartiality, integrity and expertise. We also give the taxpayer outstanding value for money, with every pound invested in us resulting in a £16 benefit to the economy.

"This new investment will enable us to increase our effectiveness and spread the benefits more widely. I am delighted by this news and BERR's recognition of the unique and valuable role that we play."

The changes complement provisions in the Employment Bill currently before the House, which would help deliver less formal processes to cut red tape and deliver quicker decisions on more straightforward claims. Estimates show that this approach could save businesses more than £175 million a year.

The Employment Bill also proposes to remove fixed periods for conciliation after a claim is made to the tribunal, enabling Acas to get involved at any time until the tribunal reaches its verdict.

Notes to Editors

1. Acas aims to improve organisations and working life through better employment relations. It provides up-to-date information, independent advice, high quality training and works with employers and employees to solve problems and improve performance. For more information, go to http://www.acas.org.uk

2. The Department for Business Enterprise and Regulatory Reform helps UK business succeed in an increasingly competitive world. It promotes business growth and a strong enterprise economy, leads the better regulation agenda and champions free and fair markets. It is the shareholder in a number of Government-owned assets and it works to secure, clean and competitively priced energy supplies.

Department for Business, Enterprise & Regulatory Reform
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http://www.berr.gov.uk