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SMEs Encouraged to Mediate

Business owners in the SME sector are being urged to resolve workplace disputes through mediation where possible, rather than heading straight for an employment tribunal. ACAS, the Advisory, Conciliation and Arbitration Service, has released the advice, which is based on research that shows mediation as a last resort for many small business owners.

The report showed that 52 percent of small business owners surveyed believed that mediation was suited only to large companies. The surveyed business owners did believe mediation was a valuable tool however, with 63 percent believing that a more widespread use of mediation would reduce the number of employment tribunal claims.

The ACAS revised code of practice, however, has come under scrutiny, with a number of bodies suggesting that the new process could possibly have a negative effect on small businesses. The code is shorter, according to the Forum of Private Businesses, but linguistically is no less complex, leaving owners of SMEs potentially unsure of where they stand.