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Wednesday, 3 October 2023

Arbitration in workplace disputes

Arbitration can be used for several things, including resolving individual or collective problems at work, without going to an Employment Tribunal (eg when trade unions are considering strike action). Find out what arbitration is and how it could be helpful to you.

What arbitration is

In arbitration, you and your employer allow an independent and impartial outsider (the arbitrator, or arbiter in Scotland) to determine the outcome of your problem. Arbitration differs from conciliation and mediation because the arbitrator acts like a judge, making a firm decision on a case.

If you and your employer agree to go to an arbitrator, it may be a quick way of resolving a problem without the stress and expense of an Employment Tribunal. Arbitration is faster and less formal than an Employment Tribunal.

Unless you and your employer agree in advance that it will be, an arbitrator's decision will not be legally binding. Only decisions reached by an Acas (Advisory, Conciliation and Arbitration Service) arbitrator on certain cases are legally binding. See the Acas arbitration scheme below for more information.

If you and your employer decide the decision won't be legally binding, then you can still decide to go to a court or Employment Tribunal.

Acas and some commercial organisations offer the services of specialist arbitrators.

The Acas arbitration scheme

Acas runs a free arbitration scheme that can decide cases of unfair dismissal and disputes about flexible working, where there are no complex legal issues. Decisions reached by an Acas arbitrator under Acas's arbitration scheme on certain unfair dismissal claims or requests to work flexibly are legally binding.

You and your employer must agree in writing to refer a case to arbitration. It is generally helpful to take advice from an independent source like a lawyer before doing this.

Once you have signed an agreement to start Acas arbitration, you are free to pull out of the process. However, you can’t then make a claim to an Employment Tribunal.

Your employer can’t pull out of arbitration without your consent. However, you and your employer can still reach an agreement to settle a case before an arbitration hearing.

Where to get help

Acas offers free, confidential and impartial advice on all employment rights issues and you can find out more about their arbitration service.

Your local Citizens Advice Bureau (CAB) can provide free and impartial advice. You can find your local CAB office in the phone book or online.

If you are a member of a trade union, you can get help, advice and support from them.

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