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Businesses told to seek mediation

17 July 2008

Businesses ought to attempt to solve workplace disputes through mediation before they go to employment tribunals, according to the country's employment relations service.

A study by Acas found that just seven per cent of businesses had attempted to use mediation in past disputes, while more than half admitted they thought such steps were only appropriate for large firms.

Ed Sweeney, chair of Acas, said: "Resolving an issue at an early stage instead of clearing up its eventual consequences saves money, time and grief."

Although mediation practices tend to be associated with larger organisations, smaller businesses without human resources departments may be "vulnerable" to the escalation of disputes, he added.

Of the businesses that had used mediation, 82 per cent claimed it had helped them to at least partly resolve the issues.

The majority of Acas' funding comes from the Department for Business, Enterprise and Regulatory Reform, although it is governed by an independent council.

The organisation was set up in 1975.