The ACAS (Flexible Working) Arbitration Scheme (Great Britain) Order 2004

Explanatory Note

(This note is not part of the Order)

This Order sets out a revised scheme, submitted to the Secretary of State by ACAS pursuant to section 212A of the Trade Union and Labour Relations (Consolidation) Act 1992, providing for arbitration in the case of disputes involving proceedings, or claims which could be the subject of proceedings, before an employment tribunal arising out of a contravention or alleged contravention of sections 80G(1) or 80H(1) (b) of the Employment Rights Act 1996 (flexible working). The Order revokes and replaces a previous Order which extended to England and Wales only (the “ACAS (Flexible Working) Arbitration Scheme (England and Wales) Order 2003”). This Order extends to Great Britain. The Order provides for the Scheme to come into effect on 1^st October 2004. The Scheme will provide from that date a voluntary alternative to the employment tribunal for the resolution of claims arising out of an application for flexible working made under section 80F(1) of the 1996 Act by arbitration where both parties agree. The Order contains a transitional provision under which arbitration agreements signed before 1^st October 2004 will continue to be determined under the Scheme set out in the 2003 Order.

The Order also provides for certain provisions of the Arbitration Act 1996, as modified by the Order, to apply to arbitrations conducted in accordance with the Scheme, where the parties have agreed that the arbitration will be determined according to the law of England and Wales.

No regulatory impact assessment has been prepared in relation to this Order. The revised Scheme offers arbitration of flexible working disputes to employers and employees in Scotland, an option already available to employers and employees in England and Wales under the previous Scheme. The impact of the previous Scheme has been low, and the revised Scheme is expected to have a similar impact.