Employment Rights (Dispute Resolution) Act 1998
Encyclopedia
The Employment Rights Act 1998 (c 8) is a United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 Act of Parliament
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...

 which regulates UK labour law. The 1998 Act empowered the Advisory, Conciliation and Arbitration Service (ACAS) to create arbitration hearings as an alternative dispute resolution
Alternative dispute resolution
Alternative Dispute Resolution includes dispute resolution processes and techniques that act as a means for disagreeing parties to come to an agreement short of litigation. ADR basically is an alternative to a formal court hearing or litigation...

 mechanism to the employment tribunals.

Overview

The 1998 Act inserted the right under the Employment Rights Act 1996
Employment Rights Act 1996
The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify the existing law on individual rights in UK labour law. Previous statutes, dating from the Contracts of Employment Act 1963, included the Redundancy Payments Act 1965, the...

 section 203(5) which allows parties to a dismissal case to agree in writing that the dispute be referred to arbitration. This can result from a settlement negotiation of an ACAS conciliation officer. ACAS will supply, though not appoint, an arbitrator. If a dispute goes to arbitration, the advantage can be perceived to be finality, in that the arbitration decision is binding and not capable of appeal to the Employment Appeal Tribunal
Employment Appeal Tribunal
The Employment Appeal Tribunal is a tribunal non-departmental public body in England and Wales and Scotland, and is a superior court of record. Its primary role is to hear appeals from Employment Tribunals in England, Scotland and Wales...

 or otherwise. Only if the arbitration decision manifests serious irregularity (per incuriam
Per incuriam
Literally translated as "through lack of care", per incuriam refers to a judgment of a court which has been decided without reference to a statutory provision or earlier judgment which would have been relevant. The significance of a judgment having been decided per incuriam is that it does not...

) or acts beyond its jurisdiction or power (ultra vires
Ultra vires
Ultra vires is a Latin phrase meaning literally "beyond the powers", although its standard legal translation and substitute is "beyond power". If an act requires legal authority and it is done with such authority, it is...

) is there a right to challenge the decision under the Arbitration Act 1996
Arbitration Act 1996
The Arbitration Act 1996 is an Act of Parliament which regulates arbitration proceedings within the jurisdiction of the United Kingdom.-Overview:*Section 69 allows for an appeal on a point of law to a court if parties have agreed for this to happen....

.

In practice

In 2003 to 2004 the number of tribunal claims was around 50,000 each year. The number of disputes attracted to arbitration under the 1998 Act scheme was 7.
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