Employment Bill [HL]

The Government consider it important that employers and employees be encouraged to act appropriately in attempting to resolve disputes in the workplace prior to an employment tribunal. Indeed, Michael Gibbons in his review and respondents to the public consultation all pointed that out. From my previous experience in other lives, I could not agree more. The Government therefore propose a package of measures to encourage early resolution of disputes in the workplace. New services within this package include an enhanced ACAS helpline and advice service and more ACAS conciliation for potential tribunal claims. This package of measures includes an incentive mechanism to encourage parties to follow good practice. Clause 3, as it currently stands, creates such an incentive mechanism. It is proposed to give the tribunal the power to adjust awards up or down by up to 25 per cent if either party has acted unreasonably in failing to comply with procedural elements of the relevant statutory code. A relevant statutory code is one issued under Chapter III of Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992, so far as it relates to procedures to be followed in workplace dispute resolution. That allows application of the adjustment in the context of procedural provisions of existing or future relevant codes issued by ACAS or the Secretary of State. However, the amendment proposed would restrict the relevant statutory codes only to those issued by ACAS and nowhere else. I should say at this point, and I am sure that the Committee will agree, that ACAS plays an important and valued role in the resolution of workplace disputes. The drafting of this clause to refer to codes issued by either ACAS or the Secretary of State is certainly not intended to belittle the role of ACAS in any way, and I shall go on to explain the drafting. In the vast majority of cases—I hope that this will deal with the issue that Members of the Committee raised—the relevant code will be the ACAS Code of Practice on Disciplinary and Grievance Procedures. That was received by Committee Members this morning and will be amended by subsequent consultation in the weeks ahead. The amendment would have the effect of restricting a relevant code only to those issued by ACAS. Although that does not pose immediate difficulties, such a restriction—