The new Bill repeals existing statutory dispute resolution
procedures and related provisions about procedural unfairness in
dismissal cases. It follows the recommendations of Michael Gibbons,
who began a Government-commissioned review of employment dispute
resolution last December. The Gibbons
Review was published in June.
Gibbons made recommendations for resolving disputes at an
earlier stage and improving the way employment tribunals work.
Conciliation service Acas will be revising its statutory Code on
discipline and grievance procedures as a consequence. The Bill
provides that tribunals will be able to adjust awards where parties
have unreasonably failed to follow the Code.
The Bill also introduces tough new penalties for businesses not
paying workers the minimum wage and agencies which try to exploit
workers and undercut legitimate businesses. Currently, the maximum
penalty is a £5,000 fine. That will become an unlimited fine.
The Employment Agency Standards Inspectorate will have more
powers to investigate under the new rules. It will be able to
access financial information to check whether a worker's complaint
is an isolated instance or an example of widespread abuse.
Employment Relations Minister Pat McFadden said: "Our proposed
changes to dispute resolution, responding to the Gibbons Review,
would ease burdens for businesses and employees by abolishing
rigid, statutory processes for dispute resolution, while also
ensuring there is no discrimination in employees' rights."
