Early Conciliation Update: how effective is the new system?
30th September, 2014
As we have previously reported, Acas launched its new concept of Early Conciliation in April 2014, which became mandatory as of May 2014. Since then, employment lawyers have eagerly awaited information on whether the new system has been a success.
Early Conciliation requires a prospective claimant to an Employment Tribunal claim to notify Acas of their intention to submit a claim before they are actually eligible to do so. The aim of Early Conciliation is to settle disputes without the recourse to litigation. Early Conciliation can also be initiated by employers, should they wish to settle a dispute before it potentially becomes a claim against them.
The recently published first-quarter statistics show that during the first month of Early Conciliation, 1,000 notifications were made to Acas each week. However, when the process became mandatory in May 2014 that figure increased to 1,600 notifications per week. The total number of Early Conciliation notifications submitted during the first quarter was just over 17,000.
Whilst some of those 17,000 notifications remain on going, Acas has reported that around 11,000 have concluded the Early Conciliation process during the first quarter. 16.5% of the concluded Early Conciliation notifications settled their dispute and a further 19% will not be pursuing an Employment Tribunal claim.
It would appear that Early Conciliation has been less attractive for employers to initiate given that only 3% of the notifications during the first quarter came directly from employers.
Employment Tribunal statistics from the Ministry of Justice show a 71% drop in claims (70% of which being single claims) during the period from April to June 2014 compared to the same quarter last year. Perhaps more significantly, there has been a one-third drop in single claims from the first quarter of this year, to the post-Early Conciliation quarter.
For further information and advice in relation to Early Conciliation, please contact Claire Brook on 01244 405575 or send an email to [email protected].
You might also be interested in...
9th August, 2018
We have been approached by a number of clients who have received a statutory demand, either personally or to their company, and they have asked us what to do about it. One business was contacted by a company demanding payment of a debt owed under a contract for TV advertising in a shopping mall. We presume – but... Read More »
3rd August, 2018
Agriculture and Estates specialist Ben Brassington has strengthened the services offered by Top 200 legal firm Aaron & Partners LLP A dairy farmer with more than 18 years’ experience as a Partner in his family’s farming business has been appointed by a top legal firm in Shrewsbury. Ben Brassington, who has also been working for several years as... Read More »