Arbitration in tribunal claims

Binding arbitration to resolve unfair dismissal cases will soon be available as an alternative to an employment tribunal hearing. The government is shortly to announce a system for how arbitrators should be appointed and carry out their functions. The Employment Rights (Dispute Resolution) Act 1998 provided for binding arbitration in unfair dismissal cases, as an alternative to a tribunal hearing. The arbitration process will be voluntary, with the applicant choosing whether or not to have a claim decided upon by a tribunal. However, once arbitration is chosen and the arbitrator makes a ruling, this will be binding.

The new law says that:

* the applicant must have already received independent advice;

* the parties must have agreed in writing to be bound by the decision;

* the arbitration must be heard in private;

* there is a bar on a further tribunal application; and

* the arbitrator can award reinstatement or compensation.

The government's aim is to cut down on the number of cases going to tribunals because they are bursting at the seams. However, there is a risk that applicants, particularly those without legal epresentation,

will be pressurised into agreeing to arbitration. And that this will happen without them knowing if it is really appropriate to the facts of their case and without realising that they are effectively cutting out any chance of an appeal against the decision, except in very exceptional cases.