Are there alternatives to a full tribunal hearing?

When the ET3 is sent to the employer, a copy will be sent to ACAS, who will offer you and the employer conciliation to try and settle the claim out of court. You are under no obligation to accept conciliation but assistance from ACAS, which is free, can be very useful at this stage.

There are various alternative ways of settling disputes with your employer that you should consider. Some of them will stop you pursuing your claim in an employment tribunal or court, as indicated below.

You can reach a private agreement with your employer that they will pay you compensation, without necessarily admitting liability (indeed employers normally insist on this.). An employer will also often require you to sign an agreement, which would have some legal force, saying that you will drop the claim in return for the agreed compensation payment. You are best advised to negotiate such a deal with the help of a lawyer or a union.

A wiser option is to ask ACAS to conciliate a formal agreement between you and the employer, known as a COT 3. ACAS do not charge for their conciliation services. By this, you agree to accept a stated sum of money as compensation for the dismissal. Once you have signed this you will be barred from pursuing that claim any further. ACAS have a great deal of experience in these kind of cases, and can advise you on appropriate compensation amounts. This may be a particularly attractive option if you are not a union member and do not have the means to employ a solicitor to represent you at a hearing. A union may also advise you to go down this route.

A further option is to sign a 'compromise agreement', which is similar to a COT3 but need not involve ACAS. It must be signed by you and the employer and a person specified as having authority to sign compromise agreements in the Employment Rights (Dispute Resolution) Act 1998. This will be a solicitor, a trade union officer or a CAB worker who has an appropriate certificate of indemnity insurance. Again, once you have signed a compromise agreement you cannot pursue that claim any further.

ACAS has recently established a new arbitration scheme for unfair dismissal claims. If you and your employer agree to go to arbitration, ACAS will appoint a qualified arbitrator, who will meet both of you in a formal hearing, probably, but not necessarily, in the workplace, hear both your arguments, listen to witnesses, look at relevant documents and then decide whether the dismissal was unfair. If the arbitrator decides that it was, he or she will order reinstatement, re-engagement or compensation exactly as tribunals do.

This new scheme has real advantages. It is informal and quick, it is easier to represent yourself, it will look primarily at the facts of the matter without having to refer to case law, and it is more likely to award reinstatement or re-engagement than a tribunal.

But there are also disadvantages. There is no right of appeal (although in exceptional circumstances judicial review may be available) and there are no lay members.

In general you should always take advice about which route is best for you in your particular circumstances. Your union or an advice agency, such as the Citizens’ Advice Bureau, should be able to help.