The DTI has launched a consultation on how to improve the way employment disputes are resolved, while preserving existing employees' rights.

The consultation will ask if there should be a new, quick approach for dealing with straightforward claims without the need for employment tribunal hearings. It will also ask if there should be incentives for employers to make reasonable attempts to resolve a dispute early.

Secretary of State Alistair Darling said: "Workplace disputes are expensive and wasteful for employers and stressful for employees. We want to find the best way to reduce the numbers, get them solved earlier, and keep the system fair for everybody."

The government says it is committed to piloting any new approach to dispute resolution that follows the consultation.

Views are sought from businesses, individuals, trade unions, representative bodies, and other interested parties. The consultation will close on 20 June 2007.