The long awaited ACAS arbitration scheme came into force on 21st May. It applies to employers who reside or carry on business in England and Wales. The scheme provides a voluntary alternative to the employment tribunal for cases of alleged unfair dismissal. Resolution of disputes under the scheme is intended to be confidential, informal, relatively fast and cost efficient. Procedures under the scheme are deliberately non legalistic.
The scheme only applies to cases of alleged unfair dismissal. The scheme does not extend to other kinds of claim which are often related to, or raised at the same time as, a claim of unfair dismissal. For example, sex discrimination claims are not covered by the scheme. In addition the scheme is not designed for disputes raising jurisdictional issues (such as whether the employee has the requisite continuous service to bring a claim) or for disputes involving complex legal issues. ACAS suggests that an example of this would be where the employer has been taken over.
Both parties must agree to opt for the scheme. The decision to submit to arbitration is recorded in an arbitration agreement which must be accompanied by a waiver of certain rights signed by both parties. The hearings are private and are heard by a single ACAS arbitrator, who asks the parties questions. Awards are based on the same criteria as tribunal awards and reflect the same levels of payment. Awards are binding and there is only a limited right of appeal.
If you would like further information about this new ACAS scheme, or have any queries on arbitration in general, please contact Anthony Fincham by e-mail at anthony.fincham@cms-cmck.com or by telephone on +44 (0)20 7367 2783.
