The Government has now published its response to the consultation on "Resolving disputes in the workplace" launched in March last year. The consultation followed the recommendations made by an independent review of the statutory dispute resolution procedures (click here to read our earlier summary of the review).

Whilst a number of the areas covered by the consultation have been raised in the Employment Bill (which is currently progressing through Parliament), the response summarises the Government's approach going forward. Here are some of the key issues addressed in the Government response:

• Confirmation of repeal - the Government does not believe that the shortcoming of the statutory dispute resolution procedures can be remedied by amendment and they will be repealed.
  
  
• New Code - a short, non-prescriptive statutory Acas Code of Practice on disciplinary and grievance has been proposed (see our summary of the draft Code, which is currently under consultation). The Government also believes that comprehensive non-statutory guidance would provide clarity.
  
  
• Adjustment to awards - it has been proposed that tribunals should be able to increase or decrease tribunal awards by up to 25% if either party has acted unreasonably in complying with the relevant statutory Code.
  
  
• Expand Acas service - the Government intends to expand the existing Acas service, allowing Acas to build upon its existing helpline service to offer prospective claimants clear, up-front advice on what bringing a claim involves and what the options are. It is intended that this expanded service will be launched by the time the statutory procedures are repealed.
  
  
• Simple monetary claims - it is intended that certain claims will be determined without the need for a tribunal hearing. Such paper-based determinations would only apply with the positive consent of all the parties and if an Employment Judge considers it appropriate.

Agency workers - deal agreed

After much resistance to previous EU proposals and the Private Members' Bill on the issue of agency workers, the Government has now agreed a deal with unions and employers which will see agency workers in the UK receive equal treatment after 12 weeks.

The Government's agreement with the TUC and the CBI covers the following points:

• there will be equal treatment for agency workers after completing 12 weeks in a job
  
  
• equal treatment will mean at least the basic working and employment conditions that would apply to the workers if they had been recruited directly by that undertaking to occupy the same job. This will not, however, cover occupational social security schemes (e.g. pension provision)
  
  
• the new arrangements will be reviewed at an appropriate point in the future

John Cridland of the CBI has commented that "the Government's proposals represent the least worst outcome available for British business. Half of agency assignments will be unaffected as they last less than 12 weeks - protecting businesses' ability to deal with peaks and troughs in demand and shorter-term staff absences". Brenda Barber of the TUC said "The agreement now opens the door to the much stronger legal protection that agency workers deserve".

In light of this agreement, the Government will now work with member states on the implementation of the EU Directive on agency workers, particularly in relation to mechanisms for resolving disputes and appropriate anti-avoidance measures relating to workers on repeat short-term contracts. The Government hopes that the Directive will be agreed in time to introduce legislation in the next parliamentary session.

Compromise agreements - Court of Appeal upholds High Court decision

The Court of Appeal has upheld the decision of the High Court that a compensation payment may be withheld if an employee breaches a pre-condition of the employer's obligation to make that payment under a compromise agreement. 

In Collidge v Freeport plc, Mr Collidge was the founder and chief executive of Freeport.  After allegations about Mr Collidge's conduct were considered by the Board, the parties entered into a compromise agreement.  Mr Collidge was, however, informed that an investigation into the allegations would still proceed.

Under the terms of the agreement, Freeport was obliged to pay compensation to Mr Collidge subject to and conditional upon a number of warranties. One of the warranties required Mr Collidge to warrant that there were no circumstances of which he was aware, or of which he ought reasonably to be aware, which would constitute a repudiatory breach by him of his contract of employment, which would entitle or would have entitled Freeport to terminate his contract without notice (i.e. summarily). Before Freeport paid the compensation to Mr Collidge under the terms of the compromise agreement, matters came to light during the investigation which indicated that Mr Collidge was in breach of this warranty.  Freeport refused to make the payment.

The Court of Appeal upheld the High Court's decision that Freeport was not obliged to pay the compensation sum. The agreement was structured in such a way so as to make the performance by Freeport of its obligations, set out at the beginning of the agreement, conditional upon the terms which set out what Mr Collidge had to do. This was emphasised by the opening words of the warranty: "You warrant as a strict condition". This clause did not simply require the warranties to be given; it contained promises that they were true at the date of the agreement.

The Court also noted that the Board had wanted to suspend Mr Collidge whilst it carried out its investigations into his conduct. If that had taken place, Freeport would have had ample grounds for summary dismissal. However, Mr Collidge denied misconduct so, although the investigation would continue, the Board agreed termination arrangements with him which were conditional upon his warranty that he had done nothing wrong. Freeport was therefore protecting itself if it was subsequently shown that the promise given by Mr Collidge was untrue. 

This decision highlights the importance of tailoring the drafting of compromise agreements. It is good practice to require employees to confirm that there are no circumstances of which they are aware, or ought to be aware, that would entitle the employer to dismiss them summarily, and it is advisable to link the relevant payment provisions to this confirmation.

UK/US unions to merge

An alliance between Unite, Britain's biggest trade union, and United Steelworkers union in North America is about to produce the first transatlantic union organisation with more than 2.5 million members, according to a recent report by the Financial Times.

The aim is that unions from other countries will also join the alliance, increasing its strength to combat the flow of jobs from developed nations to other countries, where labour costs are lower. The partnership is likely to be unveiled in July.

ACAS disability forum

Acas has announced plans to establish its Disabled People's Involvement Forum, to help ensure fairness and equality in Acas' work.

Acas intends to involve disabled people in areas of their policies and decision-making to make sure the issues around disability are understood. To do this, Acas is looking for disabled individuals from a diverse range of perspectives and impairment groups to volunteer for this committee and to act in an informal advisory role.

EHRC launches 2008/09 Business Plan

The Equality and Human Rights Commission (EHRC) has published its 2008/09 business plan  which sets out the plan of work for the first full year of operation.  EHRC has developed four strategic priorities for the year:

• Analyse, define and target key equality and human rights challenges
  
  
• Change policy and organisational practice to provide better public services alongside an efficient and dynamic economy
  
  
• Engage, involve and empower the public, especially people from disadvantaged communities and areas
  
  
• Anticipate social change, develop new narratives and reach new audiences in ways that strengthen equality and human rights

Key delivery targets for the EHRC include lobbying for and influencing the creation of  landmark legislation. The EHRC also intends to work with private and public sector organisations to promote fairness at work.