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What is the Function of ACAS?

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The Advisory, Conciliation and Arbitration Service (ACAS) plays an important role in the employment landscape by promoting effective employment relations and mitigating disputes. As an employer, it is essential that you understand how you may take advantage of this free and confidential service to assist you with managing employees and maintaining workplace communication. Whilst ACAS does not replace the need to seek comprehensive legal advice, its codes of conduct, best practices, and assistance provide an outline of workplace expectations. Additionally, in many instances, you may be required to participate in early conciliation from ACAS first before escalating your dispute to the employment tribunal. This article will explore the pivotal role that ACAS plays in employment dispute management. 

What is ACAS?

In its earliest form, ACAS dates back to 1896, shortly after the Conciliation Act 1986 came into effect. The aim of the then-named ‘conciliation and arbitration service’ was to provide a free service from the government to employers and unions, advising on industrial relations and staff matters. Over time, ACAS continued to transform, most notably in 1975, when it became officially recognised as a statutory body, meaning a body that has been established by law. Today, ACAS operates as an independent public body that receives funding from the government. 

In more recent times, ACAS has continued to gain relevance in the employment sector. After the passing of the Enterprise and Regulatory Reform Act 2013, there is a requirement that if you intend to lodge a claim for any employment-related dispute, you must notify ACAS first. Additionally, if an employee launches a claim in the employment tribunal before commencing early conciliation through ACAS, their claim may be dismissed. However, you should keep in mind that early conciliation is not mandatory. 

With funding from the Department of Business and Trade, ACAS operates today as a non-governmental organisation with an independent council that determines its direction and functions. Consequently, ACAS provides impartial and confidential advice free of charge to both employers and employees.

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What Functions Does ACAS Have?

ACAS provides a wide range of services that can help your business maintain a harmonious and productive workplace environment. 

In the financial year of 2022–2023, ACAS had over 14 million visits to its website and 105,000 early conciliation notifications, 72,000 of which were resolved through conciliation. Furthermore, over 41,000 people took its online training courses. These saved an estimated £100 million to the UK taxpayer, relieving pressure on the employment tribunal.

1. Codes of Practice

ACAS issues codes of practice that provide guidance on various employment-related matters, such as:

While these codes of practice are not legally binding, an employment tribunal may give them significant weight. If you fail to comply with these codes, a tribunal may rule against you and has the power to issue a compensatory award of up to 25%. 

2. Training Courses and Videos 

ACAS provides accessible training courses and educational videos on various employment-related subjects. These resources can help you, as an employer, and your staff enhance their knowledge and skills in areas such as:

  • conflict resolution;
  • effective communication; and 
  • managing disciplinary and grievance procedures. 

These videos are beneficial for ensuring that you are dealing with any issues in line with ACAS’ codes of practice. 

3. Early Conciliation

The ACAS early conciliation service aims to resolve potential employment disputes before they escalate to an employment tribunal claim. Evoking meaningful discussion can be key to:

  • preventing the escalation of a claim;
  • resolving the matter without the need for tribunal action;
  • lowering costs; and
  • protecting your business’ reputation. 

Further, ACAS provides mediation and arbitration services that can help resolve more complex or sensitive disputes while maintaining confidentiality and avoiding the costly and damaging impact of litigation. 

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Key Takeaways 

ACAS seeks to redress employment disputes by way of providing advice to employees and employers alike. It can assist your business by:

  • outlining your legal rights and best policies in relation to managing employees; 
  • promoting strategies for resolving workplace conflicts; and 
  • providing a platform for constructive dialogue and resolution through communication. 

ACAS provides a range of functions, including training videos and an early conciliation service. By effectively using these mechanisms, you have opportunities to limit the damaging nature of litigation and resolve disputes before they escalate to the employment tribunal. 

If you are involved in an employment dispute, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions 

How can early conciliation prevent my dispute from escalating?

Engaging in early conciliation can help both you and your employee reach a settlement through mediation, saving time and legal costs. ACAS also provides advisory conciliation, where they can guide you through the resolution process. 

What should I include in an employee handbook, according to ACAS guidelines?

An employee handbook should include health and safety policies, holiday leave entitlements, and disciplinary and appeal procedures. It should also be accessible to all employees. 

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Lewis Njie

Lewis Njie

Trainee Solicitor | View profile

Lewis is a Trainee Solicitor in Legal Vision’s Employment team and assists on a broad range of employment matters, including advising startups and more established employers with employment law queries to drafting and ensuring compliance. He graduated from the University of York in 2023 with a Bachelor of Laws. During his time at York, Lewis championed social mobility as President of the 93% Club York and specialised in creating legal-based technological solutions for employment issues.

Qualifications: Lewis is a Trainee Solicitor in Legal Vision’s Employment team and assists on a broad range of employment matters, including advising startups and more established employers with employment law queries to drafting and ensuring compliance. He graduated from the University of York in 2023 with a Bachelor of Laws. During his time at York, Lewis championed social mobility as President of the 93% Club York and specialised in creating legal-based technological solutions for employment issues.

Read all articles by Lewis

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