Management
Early dispute advice averts tribunals Print E-mail
Tuesday, 23 October 2007
New independent research has revealed that seeking advice on workplace problems helps avert employment tribunals, saving businesses millions of pounds.

Commissioned by employment relations service Acas, the research showed that its helpline helped to avoid around 16,000 employment tribunals last year, saving £120 million based on the Chartered Institute of Personnel and Development's (CIPD) estimate that the average cost associated with an employment tribunal claim that employers face of £7,484.

It also identified redundancy, lay-offs and business transfers as the biggest workplace worries for British employees.

Information provided by the Acas telephone helpline was found to be valuable in assisting employees to be aware of their rights and seek solutions to their problems, and as a result were spared the costs and anxieties linked with putting in a tribunal claim

Carried out by the Institute for Employment Studies, the Acas helpline Survey 2007 was undertaken with employers, employees and third parties who had used the Acas national helpline. It showed that almost a quarter (23 per cent) of employees had been considering making an employment tribunal claim before calling, but of this percentage, almost one-third (30 per cent) decided against pursuing a claim as a result of the information provided, meaning 16,000 were averted.

In addition, almost half of the employers who responded said that their call to the helpline had prompted them to update or improve existing policies at their workplace, and 45 per cent reported that their call had motivated them to implement new policies. Around three-quarters of all tribunal claims are resolved before they go to a hearing, often with Acas’ help. But the cost in financial terms and the stress these cases cause is still too high.

Ed Sweeney, Acas Chair (designate): "These findings show that talking things through can make a huge difference. Clearly there are savings to be made for both business and the individual. Employment tribunals can be expensive, time-intensive and stressful. As well as using our helpline service and website, we are urging businesses and employees to take a ‘prevention over cure’ approach and stop these types of problem escalating to employment tribunals."

Other findings showed that male callers were more likely to have been considering making an employment tribunal claim (29 per cent, compared to 20 per cent of women), as were callers from the construction industry (28 per cent), and those working in distribution, retail, hotels and restaurants.

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