BL Resolve - Winter 2011/12 update
mediation news
Employment Tribunal fees – will they
encourage mediation?
In December 2011 the Ministry of Justice
announced a consultation on introducing fees for commencing a claim
in the Employment Tribunal in a similar way to fees in the Civil
Courts. Minister Jonathan Djanogly said that the ".... proposed
fees will encourage businesses and workers to settle problems
earlier, through non-tribunal routes like conciliation or mediation
and we want to give businesses – particularly small businesses -
the confidence to create new jobs without fear of being dragged
into unnecessary actions". While the fees may in some
circumstances encourage early settlement there may not be a
corresponding increase in mediation as that itself involves
costs.
mediation in tax disputes
In January 2012 HMRC announced that a second
phase of a trial of mediation of tax disputes for small and medium
sized businesses in the North West and North Wales will take place.
HMRC will seek to pick up issues at an early stage during
compliance checks and will then offer the parties a HMRC trained
mediator to resolve the issues. This proposal is intended to reduce
the cost to businesses and HMRC of tax tribunals. While the
proposal has generally been welcomed opinion is divided in the
industry on whether this will be successful or whether there will
be problems caused by the lack of true independence of the
mediator.
divorcing couples urged to mediate
Since the new rules on family mediation came into force in April
2011 the Government has increased its spending on family mediation
services from £10 million to £25 million a year. At a time of year
when divorce rates reach a peak Justice Minister Jonathan Djanogly
has urged couples to use mediation: 'New Year is a time when
couples can decide to part ways - but by turning to mediation
instead of the courts people can take charge of their own futures
and work towards a better outcome for everyone involved… Mediation
is a quicker, cheaper and more amicable alternative, particularly
where children are concerned as it gives parents the skills they
need to think about the best interests of the child – not just in
the short term, but for the future too.'
regional pilot announced for Workplace Mediation
As part of the changes to the Employment Tribunals the
Government has announced that two pilot schemes will take place.
Regional mediation networks will be set up in Cambridge and
Manchester where the Department for Business, Innovation and Skills
will fund mediation training for employees from a group of 24 SMEs
in each of the pilot areas later this year. A network of trained
mediators will be available to provide mediation to other
organisations in their respective network.
legal updates
EU proposes stricter regulation of
ADR for consumers
The EU Commission has issued
proposals for a Directive and Regulation requiring member states to
implement rules that allows all consumers in sale of goods or
services cases the right to go to an "ADR Entity" to seek
resolution of the dispute and that this service must be free or of
moderate cost. As part of this greater regulation is imposed on the
"ADR Entity" including requirements to offer online dispute
resolution. In addition the Regulation will require member states
to provide an online dispute resolution service to deal with cross
border disputes. It is expected that this legislation will be
passed by the end of 2012. It is likely to strengthen the current
trend in government towards more government led mediation schemes
such as the court based small claims mediators.
