New dispute resolution process could be ‘bad’ for small employers

28 July 2008

A new system for resolving workplace disputes, far from helping small businesses, could make matters worse, it has been claimed.

The Forum of Private Business (FPB) has said that the new process, which will see the current mediation system replaced with a new Acas code of practice, could add to the problems faced by small employers.

Ross Meadows, the FPB’s legal adviser, said: “The revised code is shorter than the current code, but it is the phraseology that needs to be simplified so that smaller organisations, which may not have human resources input, can more easily understand what is being proposed.”

Mr Meadows argued that, although the aim of the code is to encourage businesses and individuals to resolve disputes internally, so saving money and time, it had to be remembered that this was also the intention of the statutory dismissal and grievance procedures.

He said: “A cause for concern is that we are reverting back to the pre-2004 position.”

The FPB identified a number of problem areas in the code of practice, which is due to come into force as part of the Employment Bill now before Parliament.

The business group said that the code of practice is aimed at medium to large businesses, rather than small firms, and that the procedures for businesses are unclear.

Worries were also expressed by the FPB that there is no evidence of any real support to help small businesses with employment problems.