The Federation of Small Businesses (FSB) has welcomed measures aimed at resolving workplace disputes and reforming the employment tribunal system. It believes these measures will considerably improve small business owners' willingness to take on more employees.

Specifically, the FSB welcomes the idea of compromise (settlement) agreements which should enable both employees and employers to part company in a mutually acceptable way.

Optional conciliation would also be welcomed if ACAS is provided with the resources to effectively carry out its workload.

The FSB particularly welcomes the efforts being made to make tribunals more cost-effective and fairer to the employer. With FSB research showing that the typical cost of a tribunal is £6,900, together with the amount of time spent preparing for it, this burden is often too great for a small business with the result many weak claims are settled rather than contested.