CAUTION: The notes below are retained because the repealed 2002/2004 rules continue to apply in some circumstances, possibly through to 2010 and even beyond (see notes at Disciplinary and Grievance Procedures - 2009 changes/transitional provisions ).
For notes on the replacement rules which came into effect on 6th April 2009 go to Disciplinary and Grievance Procedures - 2009 changes .
Important preliminary.
The Employment Act 2002 (Dispute Resolution) Regulations 2004 SI 2004/752 (with which this note is primarily concerned) have not worked well in practice. The government ordered a complete review at end 2006 and the 2002/2204 rules are completely scrapped and replaced by a semi-voluntary Code of Practice with effect from 6th April 2009 (subject to transitional provisions) - see notes at Disciplinary and Grievance Procedures - 2009 changes . The 2004 regulations have not been revoked but they lapsed on repeal of their enabling provisions.
The new Government elected in June 2001 was concerned at the rising number and cost of employer/employee disputes. It was particularly interested in making reforms to encourage and promote workplace conciliation as an alternative to going to a tribunal (see 2001/06/22 - DTI Press Release P/2001/322 re dispute resolution reforms) and the DTI dispute resolution web pages). Little more than a month after being reelected, on 20th July 2001 the government published a 46 page consultation document entitled "Routes to Resolution: Improving Dispute Resolution". There is a brief summary in an accompanying 2001/07/20 - DTI Press Release 2001/390 re tribunal reforms.
The Employment Bill introduced in November 2001, now the Employment Act 2002, implements various proposals made in the "Routes to Resolution: Improving Dispute Resolution" paper (see notes at ACTS OF PARLIAMENT etc/Employment Act 2002 and at Disciplinary procedures/2004 new regulations ).
The Employment Bill was preceded on 16th August 2001 by the publication of the Leggat 2000/2001 review of tribunals generally (not specifically employment tribunals) under the chairmanship of Sir Andrew Leggatt. Following that review the Government announced in March 2003 that it would shortly be introducing "a new, unified Tribunals Service ...." which "will be the biggest change to the tribunal system in over 40 years" (see 2003/03/11 - LCD Press Release 106/03). A White Paper is due with any changes likely to take place during 2005-2008.
Separately (but with some overlap) an Employment Tribunal System Taskforce was set up on 26th October 2001. The job of the taskforce was to make recommendations on how the employment tribunal services can be "made more efficient and cost effective for users against a background of rising caseloads". The Taskforce was chaired by an eminent employment lawyer, Janet Gaymer of Simmons & Simmons (see 2001/12/03 - DTI Press Release P/2001/679 and for the outcome see 2002/07/29 - DTI Press Release P/2002/499). The Employment Tribunal System Taskforce recommendations ("Moving Forward" was published on 28th July 2002. The taskforce was then disbanded but in 2003 the government announced that it is "be reconstituted as a strategic body to monitor progress on the implementation of its recommendations" (see DTI website re Employment Tribunal System Taskforce).
A 2002/11/14 - Press Release P/2002/704 from the Lord Chancellor's Office says that ACAS and the Employment Tribunal Service "will now address how the Taskforce's recommendations can best be progressed as part of their corporate planning processes".
The central theme running through the taskforce report was to encourage employees to use employment tribunals only as a matter of last resort. In-house procedures, mediation and alternative dispute resolution are encouraged. This accords with provisions in Employment Act 2002 s.31 which requires tribunals to reduce (or increase) all awards they make to employees by a minimum of 10% and a maximum of 50% if the employee (or employer) does not use in-house disciplinary/dismissal procedure or grievance procedures (provision for which will be included in all employment contracts by statutory implication if there is no express clause in the particular contract). It is relevant in this connection that, according to the DTI (in a speech by DTI Minister Alan Johnson, July 2001): "Incredible statistic but true - 64% of the applications to employment tribunals are lodged without the employee and employer having first met to discuss the problem and attempt to resolve it between themselves".
The other central theme of the taskforce report was to encourage increased efficiency in how the tribunal system deals with claims.
Quite separately again from the proposals, documents and committees noted above, the Cabinet Office Better Regulation Task Force ("BRTF") - an advisory group established in 1997 - issued an employment law report in 2002. This is called "Employment Regulation: striking a balance. May 2002". Main recommendations of the BRTF include
To complete this rather confusing picture, in February 2003 the DTI completed a comprehensive review of the Employment Relations Act 1999 (see notes at ACTS OF PARLIAMENT etc/Employment Relations Act 1999/2003 review ). This led in due course to a new Act - see ACTS OF PARLIAMENT etc/Employment Relations Act 2004 .
The DTI has comprehensive and well laid out information on the 1st October 2004 changes on its website at http://www3.dti.gov.uk/er/resolvingdisputes.htm. See also notes at Disciplinary procedures/2004 new regulations and/or at Grievance procedures .