(This note is not part of the Order)
This Order sets out a 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 Part X of the Employment Rights Act 1996 (unfair dismisal). The Order extends to England and Wales only. The Order provides for the Scheme to come into effect on 21 May 2001. The Scheme will provide from that date a voluntary alternative to the employment tribunal for the resolution of unfair dismissal disputes by arbitration where both parties agree.
The Order also provides—
(a)for certain provisions of the Arbitration Act 1996, as modified by the Order, to apply to arbitrations conducted in accordance with the Scheme;
(b)for employment tribunals to enforce re-employment orders made in such arbitrations; and
(c)for the award of a basic amount in such an arbitration to be treated as a basic award of compensation for unfair dismissal for the purposes of debts which the Secretary of State must satisfy if the employer has become insolvent.