Santa Claus (or was it a red cloaked Peer of the Realm?) made an appearance in the House of Lords last week, clutching a copy of the Employment Bill we have all been waiting for.  After much consultation, complaint and concern, the dreaded statutory dispute resolution procedures are at last to be confined to the dustbin.  

Key provisions in the Bill introduced to parliament last week, include:

• The abolition of the statutory dismissal and grievance procedures.

• The repeal of section 98A of the Employment Rights Act 1996 (meaning that the Polkey reversal has been reversed!)

• Providing tribunals with a discretion to increase or decrease awards by up to 25% if an employer or employee (respectively) unreasonably fails to comply with the terms of an ACAS Code of Practice.

• The extension of ACAS’ conciliation role and the removal of fixed periods of conciliation.

The Bill also affects the minimum wage, employment agencies and other miscellaneous matters but it is the changes to the dispute resolution procedures which will take all the attention.  

The new Bill, if enacted into law, will take us back to the position which prevailed prior to the introduction of the statutory dismissal and grievance procedures in October 2004.  Instead of a rigid statutory regime, the ACAS Code of Practice will take on a renewed importance.  Tribunals will be granted a limited power to punish employers or employees who do not comply with procedural obligations contained in the Code, which represent best practice.  

Unfortunately, the Employment Bill is like receiving a gift voucher for a Nintendo Wii this Christmas, as it is not likely to come into force until Spring 2009!!!   

We must also add a word of caution.  The Employment Bill is only a bill at this stage, subject to parliamentary scrutiny and may be altered during the parliamentary process.  However, it is hoped the way the bill bluntly repeals The Employment Act 2002 and s98A of the Employment Rights Act 1996, will leave little room for amendment and the sensible approach to resolving employment disputes which existed prior to 2004, will soon be restored.