As from 6th April 2004 the original unfair dismissal arbitration scheme was replaced by a version which applies to Scotland as well as to England and Wales (see the ACAS Arbitration Scheme (Great Britain) Order 2004, SI 2004/753). As from 1st October 2004 the flexible working arbitration scheme is also replaced by a version which applies to Scotland as well as England and Wales (see the ACAS (Flexible Working) Arbitration Scheme (Great Britain) Order 2004, SI 2004/2333.

The main differences beween settling unfair dismissal and flexible working disputes by ACAS arbitration rather than by going to an employment tribunal are the relative informality, speed and private nature of arbitrations (with resulting cost savings) as compared to tribunals. Awards which can be made are the same in both. The government is keen to encourage informal settlement of employment disputes - the ACAS arbitration scheme is one reflection of this. Another, in some ways perhaps more significant, is the introduction of new grievance procedures from 1st October 2004, the practical effect of which is that employment tribunals must reject most applications unless a serious attempt at an out-of-court settlement has been made.

Further information is in the notes at ACAS/arbitration scheme/the scheme . See also notes at ACAS/arbitration scheme/enforcement and appeals and/or at Mediation and ADR generally.