Employment tribunal awards and out-of-court settlements over workplace disputes will come under the spotlight after a major study was launched last week into the UK's compensation culture.

The initiative, by the Better Regulation Task Force, will examine all aspects of litigation including its impact on employers.

Announcing the study, taskforce chairman David Arculus, said: "Our question is whether litigation is the most effective and efficient regulatory tool for making amends. Or are the only people who really gain insurance companies and lawyers?

"Fear of litigation can make businesses and public sector organisations improve their performance, but it can also put a huge drain on resources - both in time and money - and result in over cautiousness. There is also the emotional costs of litigation, which can be very stressful."

Individuals or bodies wishing to give evidence to the review should do so by contacting the Better Regulation Task Force Secretariat at 5th Floor, 22 Whitehall, London, SW1A 2WH (tel: 020 7276 2142; e-mail: [email protected]) by 30 September 2003.