The best way to avoid someone making an employment-related tribunal claim against you is to avoid any disputes arising in the first place.

Employees, and in some cases other types of workers, may make an employment-related tribunal claim over issues such as:

• unfair dismissal
• redundancy pay
• discrimination on the grounds of gender, gender reassignment, sexual orientation, marriage, civil partnership, disability, race, age, religious belief or political opinion
• breach of contract
• working hours
• unauthorised deductions from wages
• written statement of main terms and conditions of employment
• failure to inform and consult in a redundancy or business transfer situation
• equal pay

Avoid disputes

You can help to avoid disputes by:

• Giving each employee a written statement of the main terms and conditions of employment. This is a legal requirement.
• Being prepared to consider employees' grievances, or raise disciplinary issues with them, informally and at an early stage wherever possible.
• Having clearly written policies and procedures where matters need to be dealt with formally. Note that disciplinary and grievance procedures are required and should comply with the Labour Relations Agency (LRA) Code of Practice.

You should:

• communicate these policies and procedures to your staff
• ensure that your staff fully understand them
• follow them consistently when the need arises

As an employer, you should also try to keep up to date with current employment law and any planned changes in legislation.

This may be time-consuming, but it's less time-consuming and less expensive than appearing before an employment-related tribunal.

Find out about new and updated employment regulations as they arise from the LRA.

Resolve disputes quickly

If a dispute does arise, you should try to resolve it as early, quickly, and informally as possible - certainly before the employee even considers making a tribunal claim.

For advice on how to deal effectively with workplace disputes, see disciplinary procedures, hearings and appeals and handling grievances.

If an individual is likely to make a claim against you, despite your best efforts to resolve the issue, you can contact the Labour Relations Agency (LRA) and request Early Conciliation to help resolve the dispute without the need for a tribunal hearing. Where there is more than one employee but fewer than five with the same dispute, you can request Early Conciliation through the LRA online form. However, where there are five or more employees with the same dispute you should contact the LRA on Tel 03300 552 220.

Tribunal claims usually have to be presented, subject to the Early Conciliation process, within three or six months of either employment ending or of the alleged incident or behaviour, depending on the type of claim. Download Early Conciliation explained (PDF, 1.06MB).

The tribunal can reject claims for various reasons, eg because the claim is made out of time (late), doesn't contain enough information, or doesn't have an Early Conciliation number.

If the tribunal accepts a claim against you or your organisation, it will send you a copy of the claim form (form ET1(NI)) usually within three days of receipt. It will also send you a blank response form (form ET3(NI)).

You can still settle the matter without the need for a tribunal hearing, eg by reaching an agreement with the claimant through conciliation, or by mutually agreeing that the matter is dealt with via the Labour Relations Agency (LRA) Arbitration Scheme.

However, should a hearing still be necessary, you should ensure that you are prepared for it, by organising the documents you need and summoning any witnesses.

The Office of the Industrial Tribunals and the Fair Employment Tribunal (OITFET) is responsible for the administration and organisation of the tribunals.

Read more about industrial tribunals.

If a dispute reaches the point where an individual makes an employment-related tribunal claim, you can still avoid the expense and stress of a tribunal hearing by resolving the issue using various methods.

Help and advice

You could try contacting:

• a free advice service - such as Advice NI
• an employer's organisation - if you are a member
• a solicitor or other professional adviser - bear in mind that most of these organisations will charge for their services

Early Conciliation

Following a change in employment law, on 27 January 2020, the LRA provides an Early Conciliation Service to help resolve workplace disputes.

LRA conciliators:

• are independent, so don't represent either you or the claimant
• have no power to impose a solution, or to judge the rights and wrongs of the case
• will simply try to help you and the claimant reach a voluntary agreement to resolve the matter

See our page on employment-related tribunal claims: Early Conciliation.

Read more about how the LRA can help with conciliation.

Download Early Conciliation explained (PDF, 1.06MB).

LRA arbitration

LRA arbitration is another alternative to an employment-related tribunal hearing. It covers most employment rights jurisdictions.

An independent arbitrator hears the case and delivers a legally binding decision in favour of one party. Arbitration is a voluntary process, available where both parties agree to sign up to the scheme.

The benefits of LRA arbitration include:

• a speedy, private, informal hearing
• no cross-examination
• limited grounds for review of the arbitrator's decision

Arbitration will generally be less costly and stressful than an employment-related tribunal and, because it is carried out in private, will not attract publicity.

If it is agreed to go to arbitration, it will no longer be possible for an employment-related tribunal to deal with the issue.

See our page on the Employment-related tribunal claims: LRA Arbitration Scheme.

Read more about the LRA Arbitration Scheme.

LRA mediation

The LRA offers a mediation service which is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

For more information, see employment-related tribunal clams: LRA mediation. 

Read further guidance on how the LRA can help with mediation.

Compromise agreements

A compromise agreement is a legally binding agreement offering the employee compensation in exchange for not bringing - or for withdrawing - a tribunal claim.

Reaching such an agreement will generally be quicker and will not attract the publicity that might arise by going to a tribunal to resolve a dispute.

For a compromise agreement to be valid, the employee must receive advice from a relevant independent legal adviser before signing. The employer is usually expected to pay the legal fees of both parties. You may find this to be a cheaper option than defending a long tribunal case, as even if you win you will generally have to pay your legal costs - which can be significant.

Note that you can only use a compromise agreement to settle the immediate complaint(s) - the agreement cannot be worded to cover every single employment rights claim that the claimant could bring in the future.

The Labour Relations Agency (LRA) provides an Early Conciliation Service to help resolve workplace disputes.

This is an impartial and confidential service that is free to users and entirely voluntary - it can only go ahead if both you and the claimant (or potential claimant) agree.

You and/or the claimant may decide at any stage of the process that you want to be independently advised and/or represented. If this is the case, the LRA conciliator will conduct any subsequent discussions with the representative(s).

ET1(NI) conciliation

When the LRA is contacted by a potential claimant about a claim against you, and if the claimant agrees, an LRA conciliator will contact you and the claimant - or your respective representatives if appointed - to discuss the claim and explore the potential for settlement.

These discussions will develop in different ways according to the circumstances of each potential claim. However, they will usually involve the conciliator:

• explaining to you and the claimant what potential legal issues might arise in the claim, and pointing out how tribunals tend to look at similar situations
• outlining the procedures that tribunals follow
• discussing what you and the claimant would each like the outcome to be and whether there are any obvious grounds for settlement
• acting as a neutral channel of communication
• helping you and the claimant to draw up a legally binding settlement that you both agree with, to avoid the need for a tribunal hearing

The conciliator will remain available to help both you and your employee to resolve the potential claim should you both wish to do so, by way of an agreed settlement, at any time before the matter may be finally determined by an employment-related tribunal. Where such a settlement is not attainable the conciliator will advise both parties of the potential to resolve the matter by way of the LRA Arbitration Scheme.

Benefits of Early Conciliation

Early Conciliation may prove to be more beneficial than having the matter decided by an employment-related tribunal because it:

Saves time and money

Responding to a tribunal claim takes a great deal of time, and if there's a tribunal hearing, you may well end up paying for legal representation.

Minimises stress

Being involved in a tribunal claim can put pressure on both the employer and the employee, and many people find defending a legal claim stressful.

Offers the prospect of a quick solution

Many cases can be dealt with in a few telephone calls or a short meeting, with agreed settlements implemented very soon afterwards.

Produces a win-win outcome

In a tribunal, someone always loses - and even if you 'win', you will not always get what you want from the process.

Leaves you and the claimant in control

You reach an agreement that has been agreed by both of you, while in the tribunal, the decision is taken out of your hands.

Resolves the dispute

Resolves the dispute to suit what both you and the claimant want, rather than what the tribunal has the power to award - for example, you could agree to provide an agreed reference, which might be more helpful to the claimant than a large cash sum.

Avoids the formality of a hearing

Although the tribunal is more informal than most courts, most people are unfamiliar and uncomfortable with legal processes.

Early settlement preserves the working relationship

Tribunal claims inevitably damage working relationships, early conciliation offers greater opportunity for preserving and restoring the working relationship.

Download Early Conciliation explained (PDF, 1.06MB).

Mediation is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

Mediation is not normally legally binding unless both parties choose to confirm the outcome in a conciliated settlement or compromise agreement.

You could appoint someone from within your business as a mediator, though if you do, they should have appropriate training. However, you should consider finding an external mediator, such as one provided by the LRA, so that both you and the employee can trust them to be completely impartial.

Find out more about LRA mediation services.

There are also a number of commercial mediation providers. However, such providers will charge for their services.

LRA Arbitration Scheme allows claims to employment-related tribunals in Northern Ireland to be resolved through arbitration.

Under the Scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal hearing. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.

The Scheme is entirely voluntary and free to use.

Jurisdictions covered by Scheme

The Scheme covers claims in most jurisdictions, including:

• unfair or constructive dismissal
• payments owed, including notice pay, holiday pay, arrears of pay, and breach of contract
• redundancy payments
• discrimination in recruitment or employment on the grounds of age, disability, equal pay, gender, part-time working, political opinion, race, religious belief, or sexual orientation
• flexible working arrangements
• less favourable treatment of fixed-term employees or agency workers

Only a small number of specialised jurisdictions are not covered by the Scheme.

Scheme details

The scheme is a legally binding alternative to a tribunal. It is:

Confidential

Hearings are held in private. Unlike a tribunal process, where adverse publicity is possible, details about or outcomes of cases are not published.

Quick

A hearing to consider a claim will normally take place within two months of an Arbitration Agreement being received by the Agency. The hearing normally lasts for less than one day. The decision on the claim is normally issued within 14 days after the hearing.

Non-legalistic and informal

Hearings take place without, for example, any swearing of oaths.

Non-adversarial

There is no cross-examination of witnesses. This makes it particularly appropriate where the employment relationship between a claimant and a respondent is expected to continue after the hearing.

Cost efficient

The speed and informality of the process mean that it is less costly to the parties than using a tribunal.

Flexible

If both parties agree, proceedings can be suspended at any time to allow for conciliation to find a way of resolving the claim without the need for a decision by an arbitrator.

Legally enforceable remedy

Able to award legally enforceable remedies in the same way as an employment tribunal.

The process

Entry to the Scheme is through an Arbitration Agreement, which will normally be drawn up by an LRA Conciliation Officer. Once an Arbitration Agreement has been concluded the claim can no longer be heard by a tribunal.

Claims are decided under the Scheme by an arbitrator who is appointed by the LRA on the basis of their knowledge, adjudication skills, and employment relations expertise. They are independent and impartial.

In deciding whether to uphold a claim the arbitrator will:

• carefully consider all aspects of a claim, taking into account the cases put forward by both parties
• make an objective decision to resolve the matter
• apply general principles of fairness and good conduct in employment relations, including principles referred to in any relevant codes of practice
• take account of the provisions of relevant guidance, such as that published by the LRA

A hearing is held to consider the issues. This is based on written submissions made by each party. The hearing is an opportunity for each party to highlight the key points of their case to the arbitrator. Witnesses may also attend to provide evidence.

Questions are asked by the arbitrator to clarify points. The parties may also ask questions of each other through the arbitrator.

Hearings normally last for less than one day and will normally take place within two months of the Arbitration Agreement being received by the Agency.

Hearings are normally held at the Agency's offices in Belfast or Derry/Londonderry. They are held in private, unlike in tribunals where members of the public and the media are allowed to attend.

If they wish, parties may bring someone to help them present their case - for example, a colleague, a trade union representative, or a legal adviser.

If the parties agree, proceedings can be suspended at any time in order to find a way of resolving the claim through conciliation. The services of a Conciliation Officer are available to the parties before, and during, a hearing to help them reach a settlement. A settlement reached using a Conciliation Officer is binding and legally enforceable.

The decision

The arbitrator's decision is called an award. It is final and legally binding. The award is sent to both parties at the same time, normally within 14 days after the hearing has taken place.

If the arbitrator finds in favour of the claimant, the award will contain details of what needs to be done (the remedy). The remedies available to the arbitrator are the same as those available to an employment-related tribunal. Such remedies could, for example, be financial compensation or, in the case of unfair dismissal, reinstatement, or re-engagement. The award is enforceable through the courts in the same way as if it had been made by a tribunal.

In line with the Agency's remit to promote good employment relations, arbitrators may make recommendations to improve employment practices within an employer's organisation in light of the claim.

While an arbitrator's award is final and legally binding on the parties, it can be appealed or challenged in certain circumstances.

The following are some plain English definitions of employment-related tribunal terms and jargon that you may come across:

• Case management discussion - a private meeting held before an employment judge to decide on matters such as the date, time, and length of the hearing
• Claim - the written complaint against you, set out on an ET1(NI) form, sent by a claimant to the employment-related tribunal
• Claimant - the individual - usually an employee or ex-employee making a claim to an employment-related tribunal
• Early Conciliation - a workplace dispute resolution service provided by the Labour Relations Agency to employees, employers, and their representatives - claimants who wish to lodge a claim with the Industrial or Fair Employment Tribunal must first notify the Labour Relations Agency and discuss the option of Early Conciliation
• Employment judge - a legally qualified person with knowledge of employment law and business experience who directs an employment-related tribunal hearing
• Employment-related tribunal - the panel of people on an Industrial Tribunal or Fair Employment Tribunal who listen to the evidence and reach a decision during a hearing
• ET1(NI) - the form the claimant fills in to make a claim
• ET3(NI) - the form the respondent fills in to give their response to the claimant's claim
• Hearing - the proceedings during which both parties present their evidence and defend their claim in front of the employment-related tribunal, after which it reaches its judgment
• Office of the Industrial tribunals and the Fair Employment Tribunal (OITFET) - the organisation that administers employment-related tribunal claims
• Judgment - the employment judge's or employment-related tribunal's decision on the outcome of the claim, ie whether it succeeds or fails, or on a matter relating to the proceedings
• Lay members - people with experience in employment relations, either from an employers' standpoint or from a trade union or employees' standpoint, who sit on an employment-related tribunal alongside an employment judge
• Party - either the claimant (plus their representative if they have one) or respondent (plus their representative if they have one)
• Preliminary hearing - a meeting held in public before an employment judge to decide preliminary matters and which may result in a claim or part of a claim being struck out without the need for a full hearing
• Reasons - an explanation of why or how a particular judgment was arrived at
• Representative - a person who acts on behalf of either the claimant or respondent during conciliation, case management discussions, pre-hearing reviews, and the employment-related tribunal hearing itself
• Respondent - the party - usually an employer - against whom the claim is made against by the claimant
• Response - the written reasons why the respondent will (or will not) be defending a claim

The best way to avoid someone making an employment-related tribunal claim against you is to avoid any disputes arising in the first place.

Employees, and in some cases other types of workers, may make an employment-related tribunal claim over issues such as:

• unfair dismissal
• redundancy pay
• discrimination on the grounds of gender, gender reassignment, sexual orientation, marriage, civil partnership, disability, race, age, religious belief or political opinion
• breach of contract
• working hours
• unauthorised deductions from wages
• written statement of main terms and conditions of employment
• failure to inform and consult in a redundancy or business transfer situation
• equal pay

Avoid disputes

You can help to avoid disputes by:

• Giving each employee a written statement of the main terms and conditions of employment. This is a legal requirement.
• Being prepared to consider employees' grievances, or raise disciplinary issues with them, informally and at an early stage wherever possible.
• Having clearly written policies and procedures where matters need to be dealt with formally. Note that disciplinary and grievance procedures are required and should comply with the Labour Relations Agency (LRA) Code of Practice.

You should:

• communicate these policies and procedures to your staff
• ensure that your staff fully understand them
• follow them consistently when the need arises

As an employer, you should also try to keep up to date with current employment law and any planned changes in legislation.

This may be time-consuming, but it's less time-consuming and less expensive than appearing before an employment-related tribunal.

Find out about new and updated employment regulations as they arise from the LRA.

Resolve disputes quickly

If a dispute does arise, you should try to resolve it as early, quickly, and informally as possible - certainly before the employee even considers making a tribunal claim.

For advice on how to deal effectively with workplace disputes, see disciplinary procedures, hearings and appeals and handling grievances.

If an individual is likely to make a claim against you, despite your best efforts to resolve the issue, you can contact the Labour Relations Agency (LRA) and request Early Conciliation to help resolve the dispute without the need for a tribunal hearing. Where there is more than one employee but fewer than five with the same dispute, you can request Early Conciliation through the LRA online form. However, where there are five or more employees with the same dispute you should contact the LRA on Tel 03300 552 220.

Tribunal claims usually have to be presented, subject to the Early Conciliation process, within three or six months of either employment ending or of the alleged incident or behaviour, depending on the type of claim. Download Early Conciliation explained (PDF, 1.06MB).

The tribunal can reject claims for various reasons, eg because the claim is made out of time (late), doesn't contain enough information, or doesn't have an Early Conciliation number.

If the tribunal accepts a claim against you or your organisation, it will send you a copy of the claim form (form ET1(NI)) usually within three days of receipt. It will also send you a blank response form (form ET3(NI)).

You can still settle the matter without the need for a tribunal hearing, eg by reaching an agreement with the claimant through conciliation, or by mutually agreeing that the matter is dealt with via the Labour Relations Agency (LRA) Arbitration Scheme.

However, should a hearing still be necessary, you should ensure that you are prepared for it, by organising the documents you need and summoning any witnesses.

The Office of the Industrial Tribunals and the Fair Employment Tribunal (OITFET) is responsible for the administration and organisation of the tribunals.

Read more about industrial tribunals.

If a dispute reaches the point where an individual makes an employment-related tribunal claim, you can still avoid the expense and stress of a tribunal hearing by resolving the issue using various methods.

Help and advice

You could try contacting:

• a free advice service - such as Advice NI
• an employer's organisation - if you are a member
• a solicitor or other professional adviser - bear in mind that most of these organisations will charge for their services

Early Conciliation

Following a change in employment law, on 27 January 2020, the LRA provides an Early Conciliation Service to help resolve workplace disputes.

LRA conciliators:

• are independent, so don't represent either you or the claimant
• have no power to impose a solution, or to judge the rights and wrongs of the case
• will simply try to help you and the claimant reach a voluntary agreement to resolve the matter

See our page on employment-related tribunal claims: Early Conciliation.

Read more about how the LRA can help with conciliation.

Download Early Conciliation explained (PDF, 1.06MB).

LRA arbitration

LRA arbitration is another alternative to an employment-related tribunal hearing. It covers most employment rights jurisdictions.

An independent arbitrator hears the case and delivers a legally binding decision in favour of one party. Arbitration is a voluntary process, available where both parties agree to sign up to the scheme.

The benefits of LRA arbitration include:

• a speedy, private, informal hearing
• no cross-examination
• limited grounds for review of the arbitrator's decision

Arbitration will generally be less costly and stressful than an employment-related tribunal and, because it is carried out in private, will not attract publicity.

If it is agreed to go to arbitration, it will no longer be possible for an employment-related tribunal to deal with the issue.

See our page on the Employment-related tribunal claims: LRA Arbitration Scheme.

Read more about the LRA Arbitration Scheme.

LRA mediation

The LRA offers a mediation service which is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

For more information, see employment-related tribunal clams: LRA mediation. 

Read further guidance on how the LRA can help with mediation.

Compromise agreements

A compromise agreement is a legally binding agreement offering the employee compensation in exchange for not bringing - or for withdrawing - a tribunal claim.

Reaching such an agreement will generally be quicker and will not attract the publicity that might arise by going to a tribunal to resolve a dispute.

For a compromise agreement to be valid, the employee must receive advice from a relevant independent legal adviser before signing. The employer is usually expected to pay the legal fees of both parties. You may find this to be a cheaper option than defending a long tribunal case, as even if you win you will generally have to pay your legal costs - which can be significant.

Note that you can only use a compromise agreement to settle the immediate complaint(s) - the agreement cannot be worded to cover every single employment rights claim that the claimant could bring in the future.

The Labour Relations Agency (LRA) provides an Early Conciliation Service to help resolve workplace disputes.

This is an impartial and confidential service that is free to users and entirely voluntary - it can only go ahead if both you and the claimant (or potential claimant) agree.

You and/or the claimant may decide at any stage of the process that you want to be independently advised and/or represented. If this is the case, the LRA conciliator will conduct any subsequent discussions with the representative(s).

ET1(NI) conciliation

When the LRA is contacted by a potential claimant about a claim against you, and if the claimant agrees, an LRA conciliator will contact you and the claimant - or your respective representatives if appointed - to discuss the claim and explore the potential for settlement.

These discussions will develop in different ways according to the circumstances of each potential claim. However, they will usually involve the conciliator:

• explaining to you and the claimant what potential legal issues might arise in the claim, and pointing out how tribunals tend to look at similar situations
• outlining the procedures that tribunals follow
• discussing what you and the claimant would each like the outcome to be and whether there are any obvious grounds for settlement
• acting as a neutral channel of communication
• helping you and the claimant to draw up a legally binding settlement that you both agree with, to avoid the need for a tribunal hearing

The conciliator will remain available to help both you and your employee to resolve the potential claim should you both wish to do so, by way of an agreed settlement, at any time before the matter may be finally determined by an employment-related tribunal. Where such a settlement is not attainable the conciliator will advise both parties of the potential to resolve the matter by way of the LRA Arbitration Scheme.

Benefits of Early Conciliation

Early Conciliation may prove to be more beneficial than having the matter decided by an employment-related tribunal because it:

Saves time and money

Responding to a tribunal claim takes a great deal of time, and if there's a tribunal hearing, you may well end up paying for legal representation.

Minimises stress

Being involved in a tribunal claim can put pressure on both the employer and the employee, and many people find defending a legal claim stressful.

Offers the prospect of a quick solution

Many cases can be dealt with in a few telephone calls or a short meeting, with agreed settlements implemented very soon afterwards.

Produces a win-win outcome

In a tribunal, someone always loses - and even if you 'win', you will not always get what you want from the process.

Leaves you and the claimant in control

You reach an agreement that has been agreed by both of you, while in the tribunal, the decision is taken out of your hands.

Resolves the dispute

Resolves the dispute to suit what both you and the claimant want, rather than what the tribunal has the power to award - for example, you could agree to provide an agreed reference, which might be more helpful to the claimant than a large cash sum.

Avoids the formality of a hearing

Although the tribunal is more informal than most courts, most people are unfamiliar and uncomfortable with legal processes.

Early settlement preserves the working relationship

Tribunal claims inevitably damage working relationships, early conciliation offers greater opportunity for preserving and restoring the working relationship.

Download Early Conciliation explained (PDF, 1.06MB).

Mediation is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

Mediation is not normally legally binding unless both parties choose to confirm the outcome in a conciliated settlement or compromise agreement.

You could appoint someone from within your business as a mediator, though if you do, they should have appropriate training. However, you should consider finding an external mediator, such as one provided by the LRA, so that both you and the employee can trust them to be completely impartial.

Find out more about LRA mediation services.

There are also a number of commercial mediation providers. However, such providers will charge for their services.

LRA Arbitration Scheme allows claims to employment-related tribunals in Northern Ireland to be resolved through arbitration.

Under the Scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal hearing. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.

The Scheme is entirely voluntary and free to use.

Jurisdictions covered by Scheme

The Scheme covers claims in most jurisdictions, including:

• unfair or constructive dismissal
• payments owed, including notice pay, holiday pay, arrears of pay, and breach of contract
• redundancy payments
• discrimination in recruitment or employment on the grounds of age, disability, equal pay, gender, part-time working, political opinion, race, religious belief, or sexual orientation
• flexible working arrangements
• less favourable treatment of fixed-term employees or agency workers

Only a small number of specialised jurisdictions are not covered by the Scheme.

Scheme details

The scheme is a legally binding alternative to a tribunal. It is:

Confidential

Hearings are held in private. Unlike a tribunal process, where adverse publicity is possible, details about or outcomes of cases are not published.

Quick

A hearing to consider a claim will normally take place within two months of an Arbitration Agreement being received by the Agency. The hearing normally lasts for less than one day. The decision on the claim is normally issued within 14 days after the hearing.

Non-legalistic and informal

Hearings take place without, for example, any swearing of oaths.

Non-adversarial

There is no cross-examination of witnesses. This makes it particularly appropriate where the employment relationship between a claimant and a respondent is expected to continue after the hearing.

Cost efficient

The speed and informality of the process mean that it is less costly to the parties than using a tribunal.

Flexible

If both parties agree, proceedings can be suspended at any time to allow for conciliation to find a way of resolving the claim without the need for a decision by an arbitrator.

Legally enforceable remedy

Able to award legally enforceable remedies in the same way as an employment tribunal.

The process

Entry to the Scheme is through an Arbitration Agreement, which will normally be drawn up by an LRA Conciliation Officer. Once an Arbitration Agreement has been concluded the claim can no longer be heard by a tribunal.

Claims are decided under the Scheme by an arbitrator who is appointed by the LRA on the basis of their knowledge, adjudication skills, and employment relations expertise. They are independent and impartial.

In deciding whether to uphold a claim the arbitrator will:

• carefully consider all aspects of a claim, taking into account the cases put forward by both parties
• make an objective decision to resolve the matter
• apply general principles of fairness and good conduct in employment relations, including principles referred to in any relevant codes of practice
• take account of the provisions of relevant guidance, such as that published by the LRA

A hearing is held to consider the issues. This is based on written submissions made by each party. The hearing is an opportunity for each party to highlight the key points of their case to the arbitrator. Witnesses may also attend to provide evidence.

Questions are asked by the arbitrator to clarify points. The parties may also ask questions of each other through the arbitrator.

Hearings normally last for less than one day and will normally take place within two months of the Arbitration Agreement being received by the Agency.

Hearings are normally held at the Agency's offices in Belfast or Derry/Londonderry. They are held in private, unlike in tribunals where members of the public and the media are allowed to attend.

If they wish, parties may bring someone to help them present their case - for example, a colleague, a trade union representative, or a legal adviser.

If the parties agree, proceedings can be suspended at any time in order to find a way of resolving the claim through conciliation. The services of a Conciliation Officer are available to the parties before, and during, a hearing to help them reach a settlement. A settlement reached using a Conciliation Officer is binding and legally enforceable.

The decision

The arbitrator's decision is called an award. It is final and legally binding. The award is sent to both parties at the same time, normally within 14 days after the hearing has taken place.

If the arbitrator finds in favour of the claimant, the award will contain details of what needs to be done (the remedy). The remedies available to the arbitrator are the same as those available to an employment-related tribunal. Such remedies could, for example, be financial compensation or, in the case of unfair dismissal, reinstatement, or re-engagement. The award is enforceable through the courts in the same way as if it had been made by a tribunal.

In line with the Agency's remit to promote good employment relations, arbitrators may make recommendations to improve employment practices within an employer's organisation in light of the claim.

While an arbitrator's award is final and legally binding on the parties, it can be appealed or challenged in certain circumstances.

The following are some plain English definitions of employment-related tribunal terms and jargon that you may come across:

• Case management discussion - a private meeting held before an employment judge to decide on matters such as the date, time, and length of the hearing
• Claim - the written complaint against you, set out on an ET1(NI) form, sent by a claimant to the employment-related tribunal
• Claimant - the individual - usually an employee or ex-employee making a claim to an employment-related tribunal
• Early Conciliation - a workplace dispute resolution service provided by the Labour Relations Agency to employees, employers, and their representatives - claimants who wish to lodge a claim with the Industrial or Fair Employment Tribunal must first notify the Labour Relations Agency and discuss the option of Early Conciliation
• Employment judge - a legally qualified person with knowledge of employment law and business experience who directs an employment-related tribunal hearing
• Employment-related tribunal - the panel of people on an Industrial Tribunal or Fair Employment Tribunal who listen to the evidence and reach a decision during a hearing
• ET1(NI) - the form the claimant fills in to make a claim
• ET3(NI) - the form the respondent fills in to give their response to the claimant's claim
• Hearing - the proceedings during which both parties present their evidence and defend their claim in front of the employment-related tribunal, after which it reaches its judgment
• Office of the Industrial tribunals and the Fair Employment Tribunal (OITFET) - the organisation that administers employment-related tribunal claims
• Judgment - the employment judge's or employment-related tribunal's decision on the outcome of the claim, ie whether it succeeds or fails, or on a matter relating to the proceedings
• Lay members - people with experience in employment relations, either from an employers' standpoint or from a trade union or employees' standpoint, who sit on an employment-related tribunal alongside an employment judge
• Party - either the claimant (plus their representative if they have one) or respondent (plus their representative if they have one)
• Preliminary hearing - a meeting held in public before an employment judge to decide preliminary matters and which may result in a claim or part of a claim being struck out without the need for a full hearing
• Reasons - an explanation of why or how a particular judgment was arrived at
• Representative - a person who acts on behalf of either the claimant or respondent during conciliation, case management discussions, pre-hearing reviews, and the employment-related tribunal hearing itself
• Respondent - the party - usually an employer - against whom the claim is made against by the claimant
• Response - the written reasons why the respondent will (or will not) be defending a claim

The best way to avoid someone making an employment-related tribunal claim against you is to avoid any disputes arising in the first place.

Employees, and in some cases other types of workers, may make an employment-related tribunal claim over issues such as:

• unfair dismissal
• redundancy pay
• discrimination on the grounds of gender, gender reassignment, sexual orientation, marriage, civil partnership, disability, race, age, religious belief or political opinion
• breach of contract
• working hours
• unauthorised deductions from wages
• written statement of main terms and conditions of employment
• failure to inform and consult in a redundancy or business transfer situation
• equal pay

Avoid disputes

You can help to avoid disputes by:

• Giving each employee a written statement of the main terms and conditions of employment. This is a legal requirement.
• Being prepared to consider employees' grievances, or raise disciplinary issues with them, informally and at an early stage wherever possible.
• Having clearly written policies and procedures where matters need to be dealt with formally. Note that disciplinary and grievance procedures are required and should comply with the Labour Relations Agency (LRA) Code of Practice.

You should:

• communicate these policies and procedures to your staff
• ensure that your staff fully understand them
• follow them consistently when the need arises

As an employer, you should also try to keep up to date with current employment law and any planned changes in legislation.

This may be time-consuming, but it's less time-consuming and less expensive than appearing before an employment-related tribunal.

Find out about new and updated employment regulations as they arise from the LRA.

Resolve disputes quickly

If a dispute does arise, you should try to resolve it as early, quickly, and informally as possible - certainly before the employee even considers making a tribunal claim.

For advice on how to deal effectively with workplace disputes, see disciplinary procedures, hearings and appeals and handling grievances.

If an individual is likely to make a claim against you, despite your best efforts to resolve the issue, you can contact the Labour Relations Agency (LRA) and request Early Conciliation to help resolve the dispute without the need for a tribunal hearing. Where there is more than one employee but fewer than five with the same dispute, you can request Early Conciliation through the LRA online form. However, where there are five or more employees with the same dispute you should contact the LRA on Tel 03300 552 220.

Tribunal claims usually have to be presented, subject to the Early Conciliation process, within three or six months of either employment ending or of the alleged incident or behaviour, depending on the type of claim. Download Early Conciliation explained (PDF, 1.06MB).

The tribunal can reject claims for various reasons, eg because the claim is made out of time (late), doesn't contain enough information, or doesn't have an Early Conciliation number.

If the tribunal accepts a claim against you or your organisation, it will send you a copy of the claim form (form ET1(NI)) usually within three days of receipt. It will also send you a blank response form (form ET3(NI)).

You can still settle the matter without the need for a tribunal hearing, eg by reaching an agreement with the claimant through conciliation, or by mutually agreeing that the matter is dealt with via the Labour Relations Agency (LRA) Arbitration Scheme.

However, should a hearing still be necessary, you should ensure that you are prepared for it, by organising the documents you need and summoning any witnesses.

The Office of the Industrial Tribunals and the Fair Employment Tribunal (OITFET) is responsible for the administration and organisation of the tribunals.

Read more about industrial tribunals.

If a dispute reaches the point where an individual makes an employment-related tribunal claim, you can still avoid the expense and stress of a tribunal hearing by resolving the issue using various methods.

Help and advice

You could try contacting:

• a free advice service - such as Advice NI
• an employer's organisation - if you are a member
• a solicitor or other professional adviser - bear in mind that most of these organisations will charge for their services

Early Conciliation

Following a change in employment law, on 27 January 2020, the LRA provides an Early Conciliation Service to help resolve workplace disputes.

LRA conciliators:

• are independent, so don't represent either you or the claimant
• have no power to impose a solution, or to judge the rights and wrongs of the case
• will simply try to help you and the claimant reach a voluntary agreement to resolve the matter

See our page on employment-related tribunal claims: Early Conciliation.

Read more about how the LRA can help with conciliation.

Download Early Conciliation explained (PDF, 1.06MB).

LRA arbitration

LRA arbitration is another alternative to an employment-related tribunal hearing. It covers most employment rights jurisdictions.

An independent arbitrator hears the case and delivers a legally binding decision in favour of one party. Arbitration is a voluntary process, available where both parties agree to sign up to the scheme.

The benefits of LRA arbitration include:

• a speedy, private, informal hearing
• no cross-examination
• limited grounds for review of the arbitrator's decision

Arbitration will generally be less costly and stressful than an employment-related tribunal and, because it is carried out in private, will not attract publicity.

If it is agreed to go to arbitration, it will no longer be possible for an employment-related tribunal to deal with the issue.

See our page on the Employment-related tribunal claims: LRA Arbitration Scheme.

Read more about the LRA Arbitration Scheme.

LRA mediation

The LRA offers a mediation service which is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

For more information, see employment-related tribunal clams: LRA mediation. 

Read further guidance on how the LRA can help with mediation.

Compromise agreements

A compromise agreement is a legally binding agreement offering the employee compensation in exchange for not bringing - or for withdrawing - a tribunal claim.

Reaching such an agreement will generally be quicker and will not attract the publicity that might arise by going to a tribunal to resolve a dispute.

For a compromise agreement to be valid, the employee must receive advice from a relevant independent legal adviser before signing. The employer is usually expected to pay the legal fees of both parties. You may find this to be a cheaper option than defending a long tribunal case, as even if you win you will generally have to pay your legal costs - which can be significant.

Note that you can only use a compromise agreement to settle the immediate complaint(s) - the agreement cannot be worded to cover every single employment rights claim that the claimant could bring in the future.

The Labour Relations Agency (LRA) provides an Early Conciliation Service to help resolve workplace disputes.

This is an impartial and confidential service that is free to users and entirely voluntary - it can only go ahead if both you and the claimant (or potential claimant) agree.

You and/or the claimant may decide at any stage of the process that you want to be independently advised and/or represented. If this is the case, the LRA conciliator will conduct any subsequent discussions with the representative(s).

ET1(NI) conciliation

When the LRA is contacted by a potential claimant about a claim against you, and if the claimant agrees, an LRA conciliator will contact you and the claimant - or your respective representatives if appointed - to discuss the claim and explore the potential for settlement.

These discussions will develop in different ways according to the circumstances of each potential claim. However, they will usually involve the conciliator:

• explaining to you and the claimant what potential legal issues might arise in the claim, and pointing out how tribunals tend to look at similar situations
• outlining the procedures that tribunals follow
• discussing what you and the claimant would each like the outcome to be and whether there are any obvious grounds for settlement
• acting as a neutral channel of communication
• helping you and the claimant to draw up a legally binding settlement that you both agree with, to avoid the need for a tribunal hearing

The conciliator will remain available to help both you and your employee to resolve the potential claim should you both wish to do so, by way of an agreed settlement, at any time before the matter may be finally determined by an employment-related tribunal. Where such a settlement is not attainable the conciliator will advise both parties of the potential to resolve the matter by way of the LRA Arbitration Scheme.

Benefits of Early Conciliation

Early Conciliation may prove to be more beneficial than having the matter decided by an employment-related tribunal because it:

Saves time and money

Responding to a tribunal claim takes a great deal of time, and if there's a tribunal hearing, you may well end up paying for legal representation.

Minimises stress

Being involved in a tribunal claim can put pressure on both the employer and the employee, and many people find defending a legal claim stressful.

Offers the prospect of a quick solution

Many cases can be dealt with in a few telephone calls or a short meeting, with agreed settlements implemented very soon afterwards.

Produces a win-win outcome

In a tribunal, someone always loses - and even if you 'win', you will not always get what you want from the process.

Leaves you and the claimant in control

You reach an agreement that has been agreed by both of you, while in the tribunal, the decision is taken out of your hands.

Resolves the dispute

Resolves the dispute to suit what both you and the claimant want, rather than what the tribunal has the power to award - for example, you could agree to provide an agreed reference, which might be more helpful to the claimant than a large cash sum.

Avoids the formality of a hearing

Although the tribunal is more informal than most courts, most people are unfamiliar and uncomfortable with legal processes.

Early settlement preserves the working relationship

Tribunal claims inevitably damage working relationships, early conciliation offers greater opportunity for preserving and restoring the working relationship.

Download Early Conciliation explained (PDF, 1.06MB).

Mediation is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

Mediation is not normally legally binding unless both parties choose to confirm the outcome in a conciliated settlement or compromise agreement.

You could appoint someone from within your business as a mediator, though if you do, they should have appropriate training. However, you should consider finding an external mediator, such as one provided by the LRA, so that both you and the employee can trust them to be completely impartial.

Find out more about LRA mediation services.

There are also a number of commercial mediation providers. However, such providers will charge for their services.

LRA Arbitration Scheme allows claims to employment-related tribunals in Northern Ireland to be resolved through arbitration.

Under the Scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal hearing. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.

The Scheme is entirely voluntary and free to use.

Jurisdictions covered by Scheme

The Scheme covers claims in most jurisdictions, including:

• unfair or constructive dismissal
• payments owed, including notice pay, holiday pay, arrears of pay, and breach of contract
• redundancy payments
• discrimination in recruitment or employment on the grounds of age, disability, equal pay, gender, part-time working, political opinion, race, religious belief, or sexual orientation
• flexible working arrangements
• less favourable treatment of fixed-term employees or agency workers

Only a small number of specialised jurisdictions are not covered by the Scheme.

Scheme details

The scheme is a legally binding alternative to a tribunal. It is:

Confidential

Hearings are held in private. Unlike a tribunal process, where adverse publicity is possible, details about or outcomes of cases are not published.

Quick

A hearing to consider a claim will normally take place within two months of an Arbitration Agreement being received by the Agency. The hearing normally lasts for less than one day. The decision on the claim is normally issued within 14 days after the hearing.

Non-legalistic and informal

Hearings take place without, for example, any swearing of oaths.

Non-adversarial

There is no cross-examination of witnesses. This makes it particularly appropriate where the employment relationship between a claimant and a respondent is expected to continue after the hearing.

Cost efficient

The speed and informality of the process mean that it is less costly to the parties than using a tribunal.

Flexible

If both parties agree, proceedings can be suspended at any time to allow for conciliation to find a way of resolving the claim without the need for a decision by an arbitrator.

Legally enforceable remedy

Able to award legally enforceable remedies in the same way as an employment tribunal.

The process

Entry to the Scheme is through an Arbitration Agreement, which will normally be drawn up by an LRA Conciliation Officer. Once an Arbitration Agreement has been concluded the claim can no longer be heard by a tribunal.

Claims are decided under the Scheme by an arbitrator who is appointed by the LRA on the basis of their knowledge, adjudication skills, and employment relations expertise. They are independent and impartial.

In deciding whether to uphold a claim the arbitrator will:

• carefully consider all aspects of a claim, taking into account the cases put forward by both parties
• make an objective decision to resolve the matter
• apply general principles of fairness and good conduct in employment relations, including principles referred to in any relevant codes of practice
• take account of the provisions of relevant guidance, such as that published by the LRA

A hearing is held to consider the issues. This is based on written submissions made by each party. The hearing is an opportunity for each party to highlight the key points of their case to the arbitrator. Witnesses may also attend to provide evidence.

Questions are asked by the arbitrator to clarify points. The parties may also ask questions of each other through the arbitrator.

Hearings normally last for less than one day and will normally take place within two months of the Arbitration Agreement being received by the Agency.

Hearings are normally held at the Agency's offices in Belfast or Derry/Londonderry. They are held in private, unlike in tribunals where members of the public and the media are allowed to attend.

If they wish, parties may bring someone to help them present their case - for example, a colleague, a trade union representative, or a legal adviser.

If the parties agree, proceedings can be suspended at any time in order to find a way of resolving the claim through conciliation. The services of a Conciliation Officer are available to the parties before, and during, a hearing to help them reach a settlement. A settlement reached using a Conciliation Officer is binding and legally enforceable.

The decision

The arbitrator's decision is called an award. It is final and legally binding. The award is sent to both parties at the same time, normally within 14 days after the hearing has taken place.

If the arbitrator finds in favour of the claimant, the award will contain details of what needs to be done (the remedy). The remedies available to the arbitrator are the same as those available to an employment-related tribunal. Such remedies could, for example, be financial compensation or, in the case of unfair dismissal, reinstatement, or re-engagement. The award is enforceable through the courts in the same way as if it had been made by a tribunal.

In line with the Agency's remit to promote good employment relations, arbitrators may make recommendations to improve employment practices within an employer's organisation in light of the claim.

While an arbitrator's award is final and legally binding on the parties, it can be appealed or challenged in certain circumstances.

The following are some plain English definitions of employment-related tribunal terms and jargon that you may come across:

• Case management discussion - a private meeting held before an employment judge to decide on matters such as the date, time, and length of the hearing
• Claim - the written complaint against you, set out on an ET1(NI) form, sent by a claimant to the employment-related tribunal
• Claimant - the individual - usually an employee or ex-employee making a claim to an employment-related tribunal
• Early Conciliation - a workplace dispute resolution service provided by the Labour Relations Agency to employees, employers, and their representatives - claimants who wish to lodge a claim with the Industrial or Fair Employment Tribunal must first notify the Labour Relations Agency and discuss the option of Early Conciliation
• Employment judge - a legally qualified person with knowledge of employment law and business experience who directs an employment-related tribunal hearing
• Employment-related tribunal - the panel of people on an Industrial Tribunal or Fair Employment Tribunal who listen to the evidence and reach a decision during a hearing
• ET1(NI) - the form the claimant fills in to make a claim
• ET3(NI) - the form the respondent fills in to give their response to the claimant's claim
• Hearing - the proceedings during which both parties present their evidence and defend their claim in front of the employment-related tribunal, after which it reaches its judgment
• Office of the Industrial tribunals and the Fair Employment Tribunal (OITFET) - the organisation that administers employment-related tribunal claims
• Judgment - the employment judge's or employment-related tribunal's decision on the outcome of the claim, ie whether it succeeds or fails, or on a matter relating to the proceedings
• Lay members - people with experience in employment relations, either from an employers' standpoint or from a trade union or employees' standpoint, who sit on an employment-related tribunal alongside an employment judge
• Party - either the claimant (plus their representative if they have one) or respondent (plus their representative if they have one)
• Preliminary hearing - a meeting held in public before an employment judge to decide preliminary matters and which may result in a claim or part of a claim being struck out without the need for a full hearing
• Reasons - an explanation of why or how a particular judgment was arrived at
• Representative - a person who acts on behalf of either the claimant or respondent during conciliation, case management discussions, pre-hearing reviews, and the employment-related tribunal hearing itself
• Respondent - the party - usually an employer - against whom the claim is made against by the claimant
• Response - the written reasons why the respondent will (or will not) be defending a claim

The best way to avoid someone making an employment-related tribunal claim against you is to avoid any disputes arising in the first place.

Employees, and in some cases other types of workers, may make an employment-related tribunal claim over issues such as:

• unfair dismissal
• redundancy pay
• discrimination on the grounds of gender, gender reassignment, sexual orientation, marriage, civil partnership, disability, race, age, religious belief or political opinion
• breach of contract
• working hours
• unauthorised deductions from wages
• written statement of main terms and conditions of employment
• failure to inform and consult in a redundancy or business transfer situation
• equal pay

Avoid disputes

You can help to avoid disputes by:

• Giving each employee a written statement of the main terms and conditions of employment. This is a legal requirement.
• Being prepared to consider employees' grievances, or raise disciplinary issues with them, informally and at an early stage wherever possible.
• Having clearly written policies and procedures where matters need to be dealt with formally. Note that disciplinary and grievance procedures are required and should comply with the Labour Relations Agency (LRA) Code of Practice.

You should:

• communicate these policies and procedures to your staff
• ensure that your staff fully understand them
• follow them consistently when the need arises

As an employer, you should also try to keep up to date with current employment law and any planned changes in legislation.

This may be time-consuming, but it's less time-consuming and less expensive than appearing before an employment-related tribunal.

Find out about new and updated employment regulations as they arise from the LRA.

Resolve disputes quickly

If a dispute does arise, you should try to resolve it as early, quickly, and informally as possible - certainly before the employee even considers making a tribunal claim.

For advice on how to deal effectively with workplace disputes, see disciplinary procedures, hearings and appeals and handling grievances.

If an individual is likely to make a claim against you, despite your best efforts to resolve the issue, you can contact the Labour Relations Agency (LRA) and request Early Conciliation to help resolve the dispute without the need for a tribunal hearing. Where there is more than one employee but fewer than five with the same dispute, you can request Early Conciliation through the LRA online form. However, where there are five or more employees with the same dispute you should contact the LRA on Tel 03300 552 220.

Tribunal claims usually have to be presented, subject to the Early Conciliation process, within three or six months of either employment ending or of the alleged incident or behaviour, depending on the type of claim. Download Early Conciliation explained (PDF, 1.06MB).

The tribunal can reject claims for various reasons, eg because the claim is made out of time (late), doesn't contain enough information, or doesn't have an Early Conciliation number.

If the tribunal accepts a claim against you or your organisation, it will send you a copy of the claim form (form ET1(NI)) usually within three days of receipt. It will also send you a blank response form (form ET3(NI)).

You can still settle the matter without the need for a tribunal hearing, eg by reaching an agreement with the claimant through conciliation, or by mutually agreeing that the matter is dealt with via the Labour Relations Agency (LRA) Arbitration Scheme.

However, should a hearing still be necessary, you should ensure that you are prepared for it, by organising the documents you need and summoning any witnesses.

The Office of the Industrial Tribunals and the Fair Employment Tribunal (OITFET) is responsible for the administration and organisation of the tribunals.

Read more about industrial tribunals.

If a dispute reaches the point where an individual makes an employment-related tribunal claim, you can still avoid the expense and stress of a tribunal hearing by resolving the issue using various methods.

Help and advice

You could try contacting:

• a free advice service - such as Advice NI
• an employer's organisation - if you are a member
• a solicitor or other professional adviser - bear in mind that most of these organisations will charge for their services

Early Conciliation

Following a change in employment law, on 27 January 2020, the LRA provides an Early Conciliation Service to help resolve workplace disputes.

LRA conciliators:

• are independent, so don't represent either you or the claimant
• have no power to impose a solution, or to judge the rights and wrongs of the case
• will simply try to help you and the claimant reach a voluntary agreement to resolve the matter

See our page on employment-related tribunal claims: Early Conciliation.

Read more about how the LRA can help with conciliation.

Download Early Conciliation explained (PDF, 1.06MB).

LRA arbitration

LRA arbitration is another alternative to an employment-related tribunal hearing. It covers most employment rights jurisdictions.

An independent arbitrator hears the case and delivers a legally binding decision in favour of one party. Arbitration is a voluntary process, available where both parties agree to sign up to the scheme.

The benefits of LRA arbitration include:

• a speedy, private, informal hearing
• no cross-examination
• limited grounds for review of the arbitrator's decision

Arbitration will generally be less costly and stressful than an employment-related tribunal and, because it is carried out in private, will not attract publicity.

If it is agreed to go to arbitration, it will no longer be possible for an employment-related tribunal to deal with the issue.

See our page on the Employment-related tribunal claims: LRA Arbitration Scheme.

Read more about the LRA Arbitration Scheme.

LRA mediation

The LRA offers a mediation service which is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

For more information, see employment-related tribunal clams: LRA mediation. 

Read further guidance on how the LRA can help with mediation.

Compromise agreements

A compromise agreement is a legally binding agreement offering the employee compensation in exchange for not bringing - or for withdrawing - a tribunal claim.

Reaching such an agreement will generally be quicker and will not attract the publicity that might arise by going to a tribunal to resolve a dispute.

For a compromise agreement to be valid, the employee must receive advice from a relevant independent legal adviser before signing. The employer is usually expected to pay the legal fees of both parties. You may find this to be a cheaper option than defending a long tribunal case, as even if you win you will generally have to pay your legal costs - which can be significant.

Note that you can only use a compromise agreement to settle the immediate complaint(s) - the agreement cannot be worded to cover every single employment rights claim that the claimant could bring in the future.

The Labour Relations Agency (LRA) provides an Early Conciliation Service to help resolve workplace disputes.

This is an impartial and confidential service that is free to users and entirely voluntary - it can only go ahead if both you and the claimant (or potential claimant) agree.

You and/or the claimant may decide at any stage of the process that you want to be independently advised and/or represented. If this is the case, the LRA conciliator will conduct any subsequent discussions with the representative(s).

ET1(NI) conciliation

When the LRA is contacted by a potential claimant about a claim against you, and if the claimant agrees, an LRA conciliator will contact you and the claimant - or your respective representatives if appointed - to discuss the claim and explore the potential for settlement.

These discussions will develop in different ways according to the circumstances of each potential claim. However, they will usually involve the conciliator:

• explaining to you and the claimant what potential legal issues might arise in the claim, and pointing out how tribunals tend to look at similar situations
• outlining the procedures that tribunals follow
• discussing what you and the claimant would each like the outcome to be and whether there are any obvious grounds for settlement
• acting as a neutral channel of communication
• helping you and the claimant to draw up a legally binding settlement that you both agree with, to avoid the need for a tribunal hearing

The conciliator will remain available to help both you and your employee to resolve the potential claim should you both wish to do so, by way of an agreed settlement, at any time before the matter may be finally determined by an employment-related tribunal. Where such a settlement is not attainable the conciliator will advise both parties of the potential to resolve the matter by way of the LRA Arbitration Scheme.

Benefits of Early Conciliation

Early Conciliation may prove to be more beneficial than having the matter decided by an employment-related tribunal because it:

Saves time and money

Responding to a tribunal claim takes a great deal of time, and if there's a tribunal hearing, you may well end up paying for legal representation.

Minimises stress

Being involved in a tribunal claim can put pressure on both the employer and the employee, and many people find defending a legal claim stressful.

Offers the prospect of a quick solution

Many cases can be dealt with in a few telephone calls or a short meeting, with agreed settlements implemented very soon afterwards.

Produces a win-win outcome

In a tribunal, someone always loses - and even if you 'win', you will not always get what you want from the process.

Leaves you and the claimant in control

You reach an agreement that has been agreed by both of you, while in the tribunal, the decision is taken out of your hands.

Resolves the dispute

Resolves the dispute to suit what both you and the claimant want, rather than what the tribunal has the power to award - for example, you could agree to provide an agreed reference, which might be more helpful to the claimant than a large cash sum.

Avoids the formality of a hearing

Although the tribunal is more informal than most courts, most people are unfamiliar and uncomfortable with legal processes.

Early settlement preserves the working relationship

Tribunal claims inevitably damage working relationships, early conciliation offers greater opportunity for preserving and restoring the working relationship.

Download Early Conciliation explained (PDF, 1.06MB).

Mediation is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

Mediation is not normally legally binding unless both parties choose to confirm the outcome in a conciliated settlement or compromise agreement.

You could appoint someone from within your business as a mediator, though if you do, they should have appropriate training. However, you should consider finding an external mediator, such as one provided by the LRA, so that both you and the employee can trust them to be completely impartial.

Find out more about LRA mediation services.

There are also a number of commercial mediation providers. However, such providers will charge for their services.

LRA Arbitration Scheme allows claims to employment-related tribunals in Northern Ireland to be resolved through arbitration.

Under the Scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal hearing. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.

The Scheme is entirely voluntary and free to use.

Jurisdictions covered by Scheme

The Scheme covers claims in most jurisdictions, including:

• unfair or constructive dismissal
• payments owed, including notice pay, holiday pay, arrears of pay, and breach of contract
• redundancy payments
• discrimination in recruitment or employment on the grounds of age, disability, equal pay, gender, part-time working, political opinion, race, religious belief, or sexual orientation
• flexible working arrangements
• less favourable treatment of fixed-term employees or agency workers

Only a small number of specialised jurisdictions are not covered by the Scheme.

Scheme details

The scheme is a legally binding alternative to a tribunal. It is:

Confidential

Hearings are held in private. Unlike a tribunal process, where adverse publicity is possible, details about or outcomes of cases are not published.

Quick

A hearing to consider a claim will normally take place within two months of an Arbitration Agreement being received by the Agency. The hearing normally lasts for less than one day. The decision on the claim is normally issued within 14 days after the hearing.

Non-legalistic and informal

Hearings take place without, for example, any swearing of oaths.

Non-adversarial

There is no cross-examination of witnesses. This makes it particularly appropriate where the employment relationship between a claimant and a respondent is expected to continue after the hearing.

Cost efficient

The speed and informality of the process mean that it is less costly to the parties than using a tribunal.

Flexible

If both parties agree, proceedings can be suspended at any time to allow for conciliation to find a way of resolving the claim without the need for a decision by an arbitrator.

Legally enforceable remedy

Able to award legally enforceable remedies in the same way as an employment tribunal.

The process

Entry to the Scheme is through an Arbitration Agreement, which will normally be drawn up by an LRA Conciliation Officer. Once an Arbitration Agreement has been concluded the claim can no longer be heard by a tribunal.

Claims are decided under the Scheme by an arbitrator who is appointed by the LRA on the basis of their knowledge, adjudication skills, and employment relations expertise. They are independent and impartial.

In deciding whether to uphold a claim the arbitrator will:

• carefully consider all aspects of a claim, taking into account the cases put forward by both parties
• make an objective decision to resolve the matter
• apply general principles of fairness and good conduct in employment relations, including principles referred to in any relevant codes of practice
• take account of the provisions of relevant guidance, such as that published by the LRA

A hearing is held to consider the issues. This is based on written submissions made by each party. The hearing is an opportunity for each party to highlight the key points of their case to the arbitrator. Witnesses may also attend to provide evidence.

Questions are asked by the arbitrator to clarify points. The parties may also ask questions of each other through the arbitrator.

Hearings normally last for less than one day and will normally take place within two months of the Arbitration Agreement being received by the Agency.

Hearings are normally held at the Agency's offices in Belfast or Derry/Londonderry. They are held in private, unlike in tribunals where members of the public and the media are allowed to attend.

If they wish, parties may bring someone to help them present their case - for example, a colleague, a trade union representative, or a legal adviser.

If the parties agree, proceedings can be suspended at any time in order to find a way of resolving the claim through conciliation. The services of a Conciliation Officer are available to the parties before, and during, a hearing to help them reach a settlement. A settlement reached using a Conciliation Officer is binding and legally enforceable.

The decision

The arbitrator's decision is called an award. It is final and legally binding. The award is sent to both parties at the same time, normally within 14 days after the hearing has taken place.

If the arbitrator finds in favour of the claimant, the award will contain details of what needs to be done (the remedy). The remedies available to the arbitrator are the same as those available to an employment-related tribunal. Such remedies could, for example, be financial compensation or, in the case of unfair dismissal, reinstatement, or re-engagement. The award is enforceable through the courts in the same way as if it had been made by a tribunal.

In line with the Agency's remit to promote good employment relations, arbitrators may make recommendations to improve employment practices within an employer's organisation in light of the claim.

While an arbitrator's award is final and legally binding on the parties, it can be appealed or challenged in certain circumstances.

The following are some plain English definitions of employment-related tribunal terms and jargon that you may come across:

• Case management discussion - a private meeting held before an employment judge to decide on matters such as the date, time, and length of the hearing
• Claim - the written complaint against you, set out on an ET1(NI) form, sent by a claimant to the employment-related tribunal
• Claimant - the individual - usually an employee or ex-employee making a claim to an employment-related tribunal
• Early Conciliation - a workplace dispute resolution service provided by the Labour Relations Agency to employees, employers, and their representatives - claimants who wish to lodge a claim with the Industrial or Fair Employment Tribunal must first notify the Labour Relations Agency and discuss the option of Early Conciliation
• Employment judge - a legally qualified person with knowledge of employment law and business experience who directs an employment-related tribunal hearing
• Employment-related tribunal - the panel of people on an Industrial Tribunal or Fair Employment Tribunal who listen to the evidence and reach a decision during a hearing
• ET1(NI) - the form the claimant fills in to make a claim
• ET3(NI) - the form the respondent fills in to give their response to the claimant's claim
• Hearing - the proceedings during which both parties present their evidence and defend their claim in front of the employment-related tribunal, after which it reaches its judgment
• Office of the Industrial tribunals and the Fair Employment Tribunal (OITFET) - the organisation that administers employment-related tribunal claims
• Judgment - the employment judge's or employment-related tribunal's decision on the outcome of the claim, ie whether it succeeds or fails, or on a matter relating to the proceedings
• Lay members - people with experience in employment relations, either from an employers' standpoint or from a trade union or employees' standpoint, who sit on an employment-related tribunal alongside an employment judge
• Party - either the claimant (plus their representative if they have one) or respondent (plus their representative if they have one)
• Preliminary hearing - a meeting held in public before an employment judge to decide preliminary matters and which may result in a claim or part of a claim being struck out without the need for a full hearing
• Reasons - an explanation of why or how a particular judgment was arrived at
• Representative - a person who acts on behalf of either the claimant or respondent during conciliation, case management discussions, pre-hearing reviews, and the employment-related tribunal hearing itself
• Respondent - the party - usually an employer - against whom the claim is made against by the claimant
• Response - the written reasons why the respondent will (or will not) be defending a claim

The best way to avoid someone making an employment-related tribunal claim against you is to avoid any disputes arising in the first place.

Employees, and in some cases other types of workers, may make an employment-related tribunal claim over issues such as:

• unfair dismissal
• redundancy pay
• discrimination on the grounds of gender, gender reassignment, sexual orientation, marriage, civil partnership, disability, race, age, religious belief or political opinion
• breach of contract
• working hours
• unauthorised deductions from wages
• written statement of main terms and conditions of employment
• failure to inform and consult in a redundancy or business transfer situation
• equal pay

Avoid disputes

You can help to avoid disputes by:

• Giving each employee a written statement of the main terms and conditions of employment. This is a legal requirement.
• Being prepared to consider employees' grievances, or raise disciplinary issues with them, informally and at an early stage wherever possible.
• Having clearly written policies and procedures where matters need to be dealt with formally. Note that disciplinary and grievance procedures are required and should comply with the Labour Relations Agency (LRA) Code of Practice.

You should:

• communicate these policies and procedures to your staff
• ensure that your staff fully understand them
• follow them consistently when the need arises

As an employer, you should also try to keep up to date with current employment law and any planned changes in legislation.

This may be time-consuming, but it's less time-consuming and less expensive than appearing before an employment-related tribunal.

Find out about new and updated employment regulations as they arise from the LRA.

Resolve disputes quickly

If a dispute does arise, you should try to resolve it as early, quickly, and informally as possible - certainly before the employee even considers making a tribunal claim.

For advice on how to deal effectively with workplace disputes, see disciplinary procedures, hearings and appeals and handling grievances.

If an individual is likely to make a claim against you, despite your best efforts to resolve the issue, you can contact the Labour Relations Agency (LRA) and request Early Conciliation to help resolve the dispute without the need for a tribunal hearing. Where there is more than one employee but fewer than five with the same dispute, you can request Early Conciliation through the LRA online form. However, where there are five or more employees with the same dispute you should contact the LRA on Tel 03300 552 220.

Tribunal claims usually have to be presented, subject to the Early Conciliation process, within three or six months of either employment ending or of the alleged incident or behaviour, depending on the type of claim. Download Early Conciliation explained (PDF, 1.06MB).

The tribunal can reject claims for various reasons, eg because the claim is made out of time (late), doesn't contain enough information, or doesn't have an Early Conciliation number.

If the tribunal accepts a claim against you or your organisation, it will send you a copy of the claim form (form ET1(NI)) usually within three days of receipt. It will also send you a blank response form (form ET3(NI)).

You can still settle the matter without the need for a tribunal hearing, eg by reaching an agreement with the claimant through conciliation, or by mutually agreeing that the matter is dealt with via the Labour Relations Agency (LRA) Arbitration Scheme.

However, should a hearing still be necessary, you should ensure that you are prepared for it, by organising the documents you need and summoning any witnesses.

The Office of the Industrial Tribunals and the Fair Employment Tribunal (OITFET) is responsible for the administration and organisation of the tribunals.

Read more about industrial tribunals.

If a dispute reaches the point where an individual makes an employment-related tribunal claim, you can still avoid the expense and stress of a tribunal hearing by resolving the issue using various methods.

Help and advice

You could try contacting:

• a free advice service - such as Advice NI
• an employer's organisation - if you are a member
• a solicitor or other professional adviser - bear in mind that most of these organisations will charge for their services

Early Conciliation

Following a change in employment law, on 27 January 2020, the LRA provides an Early Conciliation Service to help resolve workplace disputes.

LRA conciliators:

• are independent, so don't represent either you or the claimant
• have no power to impose a solution, or to judge the rights and wrongs of the case
• will simply try to help you and the claimant reach a voluntary agreement to resolve the matter

See our page on employment-related tribunal claims: Early Conciliation.

Read more about how the LRA can help with conciliation.

Download Early Conciliation explained (PDF, 1.06MB).

LRA arbitration

LRA arbitration is another alternative to an employment-related tribunal hearing. It covers most employment rights jurisdictions.

An independent arbitrator hears the case and delivers a legally binding decision in favour of one party. Arbitration is a voluntary process, available where both parties agree to sign up to the scheme.

The benefits of LRA arbitration include:

• a speedy, private, informal hearing
• no cross-examination
• limited grounds for review of the arbitrator's decision

Arbitration will generally be less costly and stressful than an employment-related tribunal and, because it is carried out in private, will not attract publicity.

If it is agreed to go to arbitration, it will no longer be possible for an employment-related tribunal to deal with the issue.

See our page on the Employment-related tribunal claims: LRA Arbitration Scheme.

Read more about the LRA Arbitration Scheme.

LRA mediation

The LRA offers a mediation service which is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

For more information, see employment-related tribunal clams: LRA mediation. 

Read further guidance on how the LRA can help with mediation.

Compromise agreements

A compromise agreement is a legally binding agreement offering the employee compensation in exchange for not bringing - or for withdrawing - a tribunal claim.

Reaching such an agreement will generally be quicker and will not attract the publicity that might arise by going to a tribunal to resolve a dispute.

For a compromise agreement to be valid, the employee must receive advice from a relevant independent legal adviser before signing. The employer is usually expected to pay the legal fees of both parties. You may find this to be a cheaper option than defending a long tribunal case, as even if you win you will generally have to pay your legal costs - which can be significant.

Note that you can only use a compromise agreement to settle the immediate complaint(s) - the agreement cannot be worded to cover every single employment rights claim that the claimant could bring in the future.

The Labour Relations Agency (LRA) provides an Early Conciliation Service to help resolve workplace disputes.

This is an impartial and confidential service that is free to users and entirely voluntary - it can only go ahead if both you and the claimant (or potential claimant) agree.

You and/or the claimant may decide at any stage of the process that you want to be independently advised and/or represented. If this is the case, the LRA conciliator will conduct any subsequent discussions with the representative(s).

ET1(NI) conciliation

When the LRA is contacted by a potential claimant about a claim against you, and if the claimant agrees, an LRA conciliator will contact you and the claimant - or your respective representatives if appointed - to discuss the claim and explore the potential for settlement.

These discussions will develop in different ways according to the circumstances of each potential claim. However, they will usually involve the conciliator:

• explaining to you and the claimant what potential legal issues might arise in the claim, and pointing out how tribunals tend to look at similar situations
• outlining the procedures that tribunals follow
• discussing what you and the claimant would each like the outcome to be and whether there are any obvious grounds for settlement
• acting as a neutral channel of communication
• helping you and the claimant to draw up a legally binding settlement that you both agree with, to avoid the need for a tribunal hearing

The conciliator will remain available to help both you and your employee to resolve the potential claim should you both wish to do so, by way of an agreed settlement, at any time before the matter may be finally determined by an employment-related tribunal. Where such a settlement is not attainable the conciliator will advise both parties of the potential to resolve the matter by way of the LRA Arbitration Scheme.

Benefits of Early Conciliation

Early Conciliation may prove to be more beneficial than having the matter decided by an employment-related tribunal because it:

Saves time and money

Responding to a tribunal claim takes a great deal of time, and if there's a tribunal hearing, you may well end up paying for legal representation.

Minimises stress

Being involved in a tribunal claim can put pressure on both the employer and the employee, and many people find defending a legal claim stressful.

Offers the prospect of a quick solution

Many cases can be dealt with in a few telephone calls or a short meeting, with agreed settlements implemented very soon afterwards.

Produces a win-win outcome

In a tribunal, someone always loses - and even if you 'win', you will not always get what you want from the process.

Leaves you and the claimant in control

You reach an agreement that has been agreed by both of you, while in the tribunal, the decision is taken out of your hands.

Resolves the dispute

Resolves the dispute to suit what both you and the claimant want, rather than what the tribunal has the power to award - for example, you could agree to provide an agreed reference, which might be more helpful to the claimant than a large cash sum.

Avoids the formality of a hearing

Although the tribunal is more informal than most courts, most people are unfamiliar and uncomfortable with legal processes.

Early settlement preserves the working relationship

Tribunal claims inevitably damage working relationships, early conciliation offers greater opportunity for preserving and restoring the working relationship.

Download Early Conciliation explained (PDF, 1.06MB).

Mediation is a more informal way of resolving workplace disputes. It involves a neutral mediator helping you and the employee reach an agreement. The process is voluntary and confidential.

Mediation is not normally legally binding unless both parties choose to confirm the outcome in a conciliated settlement or compromise agreement.

You could appoint someone from within your business as a mediator, though if you do, they should have appropriate training. However, you should consider finding an external mediator, such as one provided by the LRA, so that both you and the employee can trust them to be completely impartial.

Find out more about LRA mediation services.

There are also a number of commercial mediation providers. However, such providers will charge for their services.

LRA Arbitration Scheme allows claims to employment-related tribunals in Northern Ireland to be resolved through arbitration.

Under the Scheme claimants and respondents can choose to refer a claim to an arbitrator to decide instead of going to a tribunal hearing. The arbitrator's decision is binding as a matter of law and has the same effect as a tribunal.

The Scheme is entirely voluntary and free to use.

Jurisdictions covered by Scheme

The Scheme covers claims in most jurisdictions, including:

• unfair or constructive dismissal
• payments owed, including notice pay, holiday pay, arrears of pay, and breach of contract
• redundancy payments
• discrimination in recruitment or employment on the grounds of age, disability, equal pay, gender, part-time working, political opinion, race, religious belief, or sexual orientation
• flexible working arrangements
• less favourable treatment of fixed-term employees or agency workers

Only a small number of specialised jurisdictions are not covered by the Scheme.

Scheme details

The scheme is a legally binding alternative to a tribunal. It is:

Confidential

Hearings are held in private. Unlike a tribunal process, where adverse publicity is possible, details about or outcomes of cases are not published.

Quick

A hearing to consider a claim will normally take place within two months of an Arbitration Agreement being received by the Agency. The hearing normally lasts for less than one day. The decision on the claim is normally issued within 14 days after the hearing.

Non-legalistic and informal

Hearings take place without, for example, any swearing of oaths.

Non-adversarial

There is no cross-examination of witnesses. This makes it particularly appropriate where the employment relationship between a claimant and a respondent is expected to continue after the hearing.

Cost efficient

The speed and informality of the process mean that it is less costly to the parties than using a tribunal.

Flexible

If both parties agree, proceedings can be suspended at any time to allow for conciliation to find a way of resolving the claim without the need for a decision by an arbitrator.

Legally enforceable remedy

Able to award legally enforceable remedies in the same way as an employment tribunal.

The process

Entry to the Scheme is through an Arbitration Agreement, which will normally be drawn up by an LRA Conciliation Officer. Once an Arbitration Agreement has been concluded the claim can no longer be heard by a tribunal.

Claims are decided under the Scheme by an arbitrator who is appointed by the LRA on the basis of their knowledge, adjudication skills, and employment relations expertise. They are independent and impartial.

In deciding whether to uphold a claim the arbitrator will:

• carefully consider all aspects of a claim, taking into account the cases put forward by both parties
• make an objective decision to resolve the matter
• apply general principles of fairness and good conduct in employment relations, including principles referred to in any relevant codes of practice
• take account of the provisions of relevant guidance, such as that published by the LRA

A hearing is held to consider the issues. This is based on written submissions made by each party. The hearing is an opportunity for each party to highlight the key points of their case to the arbitrator. Witnesses may also attend to provide evidence.

Questions are asked by the arbitrator to clarify points. The parties may also ask questions of each other through the arbitrator.

Hearings normally last for less than one day and will normally take place within two months of the Arbitration Agreement being received by the Agency.

Hearings are normally held at the Agency's offices in Belfast or Derry/Londonderry. They are held in private, unlike in tribunals where members of the public and the media are allowed to attend.

If they wish, parties may bring someone to help them present their case - for example, a colleague, a trade union representative, or a legal adviser.

If the parties agree, proceedings can be suspended at any time in order to find a way of resolving the claim through conciliation. The services of a Conciliation Officer are available to the parties before, and during, a hearing to help them reach a settlement. A settlement reached using a Conciliation Officer is binding and legally enforceable.

The decision

The arbitrator's decision is called an award. It is final and legally binding. The award is sent to both parties at the same time, normally within 14 days after the hearing has taken place.

If the arbitrator finds in favour of the claimant, the award will contain details of what needs to be done (the remedy). The remedies available to the arbitrator are the same as those available to an employment-related tribunal. Such remedies could, for example, be financial compensation or, in the case of unfair dismissal, reinstatement, or re-engagement. The award is enforceable through the courts in the same way as if it had been made by a tribunal.

In line with the Agency's remit to promote good employment relations, arbitrators may make recommendations to improve employment practices within an employer's organisation in light of the claim.

While an arbitrator's award is final and legally binding on the parties, it can be appealed or challenged in certain circumstances.

The following are some plain English definitions of employment-related tribunal terms and jargon that you may come across:

• Case management discussion - a private meeting held before an employment judge to decide on matters such as the date, time, and length of the hearing
• Claim - the written complaint against you, set out on an ET1(NI) form, sent by a claimant to the employment-related tribunal
• Claimant - the individual - usually an employee or ex-employee making a claim to an employment-related tribunal
• Early Conciliation - a workplace dispute resolution service provided by the Labour Relations Agency to employees, employers, and their representatives - claimants who wish to lodge a claim with the Industrial or Fair Employment Tribunal must first notify the Labour Relations Agency and discuss the option of Early Conciliation
• Employment judge - a legally qualified person with knowledge of employment law and business experience who directs an employment-related tribunal hearing
• Employment-related tribunal - the panel of people on an Industrial Tribunal or Fair Employment Tribunal who listen to the evidence and reach a decision during a hearing
• ET1(NI) - the form the claimant fills in to make a claim
• ET3(NI) - the form the respondent fills in to give their response to the claimant's claim
• Hearing - the proceedings during which both parties present their evidence and defend their claim in front of the employment-related tribunal, after which it reaches its judgment
• Office of the Industrial tribunals and the Fair Employment Tribunal (OITFET) - the organisation that administers employment-related tribunal claims
• Judgment - the employment judge's or employment-related tribunal's decision on the outcome of the claim, ie whether it succeeds or fails, or on a matter relating to the proceedings
• Lay members - people with experience in employment relations, either from an employers' standpoint or from a trade union or employees' standpoint, who sit on an employment-related tribunal alongside an employment judge
• Party - either the claimant (plus their representative if they have one) or respondent (plus their representative if they have one)
• Preliminary hearing - a meeting held in public before an employment judge to decide preliminary matters and which may result in a claim or part of a claim being struck out without the need for a full hearing
• Reasons - an explanation of why or how a particular judgment was arrived at
• Representative - a person who acts on behalf of either the claimant or respondent during conciliation, case management discussions, pre-hearing reviews, and the employment-related tribunal hearing itself
• Respondent - the party - usually an employer - against whom the claim is made against by the claimant
• Response - the written reasons why the respondent will (or will not) be defending a claim