Free legal advice being ignored, says government

A survey of 300 firms employing between two and 49 people found 40% of businesses were likely to seek outside advice for employment issues in the next year.

But the government is concerned that not enough of these firms are seeking the free legal advice on the Business Link website, even though 84% of businesses who had used the site’s information on employment issues rated it as excellent, very good or good.

The findings come as the government embarks on an employment law guidance campaign. Upwards of 400,000 small businesses will be contacted to ensure they know of the Business Link website.

BERR believes that if half of employers used the website, around £160m collectively could be saved. If only a third of affected businesses used the new redundancy statements tool in the ‘employing people’ section of the website, the saving to business could be as much as £5m.

Interactive features of the site include down-loadable tools to produce statements of employment, redundancy and holiday entitlement, as well as an e-mail alert for new legislation.

The government has also announced up to £37 million to prevent work place disputes unnecessarily going to employment tribunals.

The measures are part of package designed to simplify the dispute resolution system, saving business and employees over £175m a year.

The extra funding, over three years, will allow the independent dispute resolution service Acas to boost its helpline and advice services and offer help at any stage of a dispute to make sure it is never too late to choose an informal resolution.

Acas will conduct pilot programmes over the next year to conciliate disputes which look set to become a claim to the tribunals with the aim of making the service available throughout the UK in 2009.

The changes complement provisions in the Employment Bill now before the House. The Bill also proposes to remove fixed periods for conciliation after a claim is made to the tribunal. This would enable Acas to get involved at any time until the tribunal reaches its verdict.