Pilot scheme will aid SMEs

23 January 2012

The government has launched a pilot scheme to reform the employment tribunal system for small and medium sized enterprises (SMEs).

It is hoped the new system will help resolve workplace disputes, including those at umbrella companies, before they reach the tribunal stage.

As part of the pilot, the Department for Business, Innovation and Skills will provide funding for employees from 24 SMEs in Cambridge and Manchester.

"We want to help employers and employees to help themselves. In particular our consultations showed SMEs are often not aware of the benefits that mediation can bring for both parties. This pilot will directly target this group," explained employment relations minister Edward Davey.

The pilots will run for a year and if they are successful the model will be rolled out across other areas in England, Scotland and Wales.

HM Revenue and Customs is also training mediators to help solve tax disputes with small businesses and sole traders, in a bid to save money for both parties.

Filed under: SMEs, umbrella companies