HC Deb 16 July 2003 vol 409 cc372-3W
Mr. Bellingham

To ask the Secretary of State for Trade and Industry how many employees are estimated by her Department to lack adequate internal dispute resolution procedures; what proportion of these are small and medium-sized enterprises; how many are expected to lack adequate procedures when the new rules come into force in 2004; and if she will make a statement. [125822]

Mr. Sutcliffe

We estimate that there are just over 800,000 employers that do not have adequate dispute resolution procedures in place at this time. 97 per cent. of those firms with inadequate procedures have less than 20 employees.

The statutory dispute resolution procedures (as set out in draft Regulations, under the Employment Act 2002, which were published on 9 July 2003) are planned to come into force in October 2004. The implementation of these procedures will be supported by a broad, wide-reaching information and guidance campaign, in partnership with a range of small firms organisations and other advisory bodies. The campaign aims to ensure that all small firm employers are informed about the new requirements in time to implement them.

Mr. Bellingham

To ask the Secretary of State for Trade and Industry what representations she has had from small and medium-sized enterprises concerning requirements expected to come into force in 2004 to compel staff wishing to pursue a complaint to go through internal dispute resolution procedures before going to a tribunal. [125823]

Mr. Sutcliffe

The framework for these new dispute resolution procedures was established in the 2002 Employment Act. This was preceded by an extensive public consultation, involving many small and medium-sized firms.

The Government are currently consulting on draft Regulations that will bring these dispute resolution procedures into effect. The draft Regulations were developed with considerable input from an Advisory Group, which included representatives from the Small Business Council, the Small Business Service, the Federation of Small Businesses and the Forum for Private Business. Moreover, in line with Cabinet Office guidelines, two focus groups were held with small businesses to test the proposals.

The ongoing consultation on these draft Regulations will last for 16 weeks until 29 October 2003. We hope to collect more views from small firms, and other organisations, during this time.