The Government has launched a regional mediation pilot scheme in a bid to effectively reduce the number of employment tribunals that take place.

The pilot, which is launching in Cambridge and Manchester, will create mediation networks for small and medium-sized enterprises (SMEs).

It is hoped that the networks will help to resolve work disputes at the earliest opportunity, before they reach the tribunal stage.

Commenting, Employment Relations Minister Edward Davey, said: "We have always said that employment tribunals should be a last resort for resolving workplace disputes. That is why last year we announced a series of measures which offer alternatives when dealing with such problems.

"Mediation offers an informal method of dispute resolution and can be used at the point when problems first arise in the workplace. For both employers and employees it can mean avoiding the need for formal discipline and grievance procedures. And it can also mean avoiding the time-consuming, complex and often stressful employment tribunal process.

"We want to help employers and employees to help themselves. In particular our consultations showed SMEs are often not aware of the benefits that mediation can bring for both parties. This pilot will directly target this group, help to raise awareness of the benefits and reduce the burden on the tribunal system."

The pilots, which will involve 24 businesses, will run for 12 months, and if successful, may be rolled out into other areas of England, Scotland and Wales.