Next steps to help resolve workplace disputes

Employment Relations Minister Jo Swinson has announced plans to reduce the number of workplace disputes that end up at Employment Tribunal.

The proposals include plans to:

• Introduce a 12 month pay cap on the compensatory award for unfair dismissal.
• Make template letters available to encourage the use of the new settlement agreements, alongside a statutory code of practice which will include an explanation of improper behaviour.
• Not set a guideline tariff for settlement agreements. Government will instead develop guidance outlining the issues that should be considered when deciding and negotiating the level of financial settlement.

Jo Swinson said:

“Employment Tribunals are costly for everyone, in terms of money but also time and stress. We need to tackle unrealistic expectations about the levels of compensation awards, especially when only 1 in 350 people who make a claim for unfair dismissal receive an award of more than their own salary, and the average award is less than £5,000. Tribunals should be the last resort not the first port of call.”