Arbitration in workplace disputes

Arbitration can be used to resolve individual problems, or collective disputes at work (for example trade unions considering strike action) without going to an Employment Tribunal.

What is arbitration?

Arbitration might allow you and your employer to resolve a dispute at work without going to an Employment Tribunal. It can be used to resolve individual problems, or collective disputes (for example a trade union considering strike action).

Arbitration uses an impartial outsider (an arbitrator) to decide between two claims. The arbitrator acts like a judge, making a firm decision on a case. The two sides of the dispute will normally agree in advance whether the arbitrator's decision will be legally binding (so they have to go along with the decision) or not (so they can still decide to go to a court or Employment Tribunal).

Arbitration is often used in collective disputes. For example, if a trade union is considering strike action because they simply can't agree with an employer, then they may agree to get an independent arbitrator in (usually from the Advisory, Conciliation and Arbitration Service, Acas) to look at the situation and make a reasoned decision.

Arbitration can also be used to settle individual disputes. If you and your employer agree to go to an arbitrator, then it may be a quick way of resolving a problem without the stress and expense of an Employment Tribunal.

Both sides have to agree to go to arbitration. It's faster and less formal than an Employment Tribunal. Acas and some commercial organisations, offer the services of specialist arbitrators.

A similar scheme is run by the Labour Relations Agency (LRA) in Northern Ireland.