There were 236,000 tribunal claims during 2010 – an increase if 56% on 2009 – and estimates that businesses spend an average of £4,000 defending themselves against each claim.

Changes to regulations will see the minimum period that workers must have been employed at an organisation before being entitled to claim unfair dismissal being raised from one to two years.

In addition, Claimants may have to pay a fee to bring disputes to a tribunal, which should diminish vexatious claims. However, there are fears that this will serve to inhibit less well off employees from filing claims.

It is proposed that claims will be lodged with ACAS, giving key details in a shortened version of the ET1 in the first instance and ACAS will then attempt at conciliation. Processes will be speeded up by extending the jurisdictions where judges sit alone.

The Employer’s Charter will have the effect of consolidating an employer’s entitlement to dismiss an employee for poor performance, reject flexible working requests and have discussions with staff about maternity leave and retirement.

A government consultation with proposals designed to "improve the way in which workplace disputes are resolved" was issued on 27 January 2011 by the Department for Business (BIS).  The Consultation closes on 20 April 2011.