Importance of Prevention
Avoiding employment litigation is crucial for maintaining a healthy work environment and avoiding hefty fees.
According to ACAS’s research, “Estimating the Costs of Workplace Conflict,” workplace conflicts cost the UK economy £28.2 billion annually and affect 10 million people.
With 5 million employees off work due to stress, depression, and anxiety related to workplace issues, more employers are turning to Alternative Dispute Resolution (ADR) to manage conflicts.
This is especially important given recent amendments to sexual harassment legislation at work, which hold employers accountable if they fail to prevent workplace harassment.
Steps to avoid employment litigation
- Alternative Dispute Resolution (ADR): ADR is an effective, informal process that mediates conflicts between employees. Mediation helps avoid more formal and costly routes by guiding parties to reach mutually acceptable solutions. The informal nature of ADR often makes solutions faster and less stressful. Whatever is discussed in these sessions remains confidential, providing employees with a safe space to air grievances. Statistics show that 75% of participants in ADR have their conflicts largely or wholly resolved.
- ACAS Early Conciliation (EC): ACAS offers a free EC process to resolve conflicts before they reach an employment tribunal. Employees must notify ACAS of potential respondents and confirm their willingness to try conciliation before filing a claim. This step often indicates to the organisation that the matter will be taken beyond internal procedures. Even if an agreement is not reached initially, ACAS continues to support parties throughout the tribunal process, including the final hearing. This approach allows disputes to be resolved quickly and without cost to the business while ensuring ongoing support if the case goes to tribunal.
- Preventative measures:
- Workplace policies and procedures: Employers must implement robust workplace policies and procedures, particularly in light of changes to sexual harassment legislation. Breaching the new duty can result in a 25% uplift in compensation and investigations by the Equality and Human Rights Commission, along with reputational damage. These policies are typically set out in non-contractual staff handbooks or standalone documents but are just as important as the contract of employment.
- Compliance and monitoring: Comprehensive policies and procedures should comply with current employment law and include an evidence-based reporting system for internal compliance monitoring and regular reviews. This ensures their effectiveness during claims or Employment Tribunals. Specific grievance procedures and complaint-handling processes should also be in place.
- Drafting preventative policies: When creating these policies, consider the size of your organisation, the nature of the work, interactions with third parties, and past conflict issues as case studies.
Expert guidance
Knowing your options when disputes arise is crucial. Consulting experts who understand the necessary preventative steps and the best-suited procedures for resolving conflicts is essential.
Taking these measures not only helps avoid litigation but also promotes a healthier, more productive work environment.
Get in touch with one of our team for guidance on policy to prevent workplace conflicts.
