UNIONS and business leaders yesterday welcomed Government plans to make changes to employment law and cut the number of industrial tribunals.

The Department of Trade and Industry (DTI) plans would prevent workers from launching tribunal cases against their bosses without first complaining to them in writing.

The Trades Union Congress (TUC) welcomed the measures, which it said would help unions build on their "great track record" for helping to resolve disputes in firms where they are recognised.

Kevin Rowan, TUC regional secretary, said: "We welcome the need for employers to have much better procedures for internal dispute resolutions.

"We share the Government's ambition to get things resolved more locally and more amicably. The concern is how equipped employers are - many have no grievance and discipline procedures at all."

The Confederation of British Industry (CBI) also praised the reforms.

Deputy director-general John Cridland said: "There have been too many examples of employees using the threat of court action against employers.

"Even when firms are completely guiltless, they often pay up rather than go through an expensive and time-consuming legal process."

The DTI plans include a three-stage statutory consultation procedure to ensure staff and employers discuss disputes at work before taking the matter further.

Bosses who dismiss workers without following the new process will face an automatic finding of unfair dismissal.

The shake-up is particularly aimed at small firms and others which do not have formal disciplinary procedures.

Ministers say it will cut the cost, stress and disruption caused by a growing number of hearings.

Employment Minister Gerry Sutcliffe said: "Disputes at work are expensive, stressful and disruptive for both employers and employees alike.

"Early, constructive discussion can produce solutions before problems escalate and working relationships break down."

The new procedure will come into effect in October next year.