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
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk