The ACAS Arbitration Scheme (England and Wales) Order 2001

IV. ARBITRATOR'S TERMS OF REFERENCE

12.  Every agreement to refer a dispute to arbitration under this Scheme shall be taken to be an agreement that the arbitrator decide the dispute according to the following Terms of Reference:

In deciding whether the dismissal was fair or unfair, the arbitrator shall: (i) have regard to general principles of fairness and good conduct in employment relations (including, for example, principles referred to in any relevant ACAS “Disciplinary and Grievance Procedures” Code of Practice or “Discipline at Work” Handbook), instead of applying legal tests or rules (e.g. court decisons or legislation); (ii) apply EC law. The arbitrator shall not decide the case by substituting what he or she would have done for the actions taken by the Employer. If the arbitrator finds the dismissal unfair, he or she shall determine the appropriate remedy under the terms of this Scheme.

Nothing in the Terms of Reference affects the operation of the Human Rights Act 1998 in so far as this is applicable and relevant and (with respect to procedural matters) has not been waived by virtue of the provisions of this Scheme.