Procedures In The Workplace

On the 1st October 2004, new statutory disciplinary and grievance procedures come into force which will impact on all employers and all employees. There is no exemption for small businesses.

The legislation introduces a compulsory system for resolving disputes in the workplace. There are three core elements: -

§        A minimum dismissal and disciplinary procedure for employers or the dismissal will be automatically unfair

§        A compulsory grievance procedure for employees or they will not be able to bring a claim in the Employment Tribunal

§        An increase or decrease in compensation of up to 50% for a failure to comply with the new procedures

The Dismissal and Disciplinary Procedure

Under the new rules, there will be a minimum procedure which an employer must follow when dismissing an employee. Subject to certain exceptions, the procedure will apply whatever the reason for the dismissal. However, the procedures will not apply to verbal or written warnings or to a suspension on full pay.

There are two types of procedure known as the ‘standard’ and the ‘modified’ procedure. The standard procedure will be used in the majority of cases and the modified procedure will only be used in very serious cases of gross misconduct where the dismissal takes place as soon as the misconduct is discovered.

If an employer does not follow the statutory disciplinary procedure, there are two consequences: -

§        Any dismissal will be automatically unfair;

§        Compensation payable to the employee will be increased by between 10 and 50%

If an employee does not comply with the statutory disciplinary procedure, the consequences are: -

§        His/her compensation will be reduced by up to 50%

Time Limit to Bring a Claim

Claims for unfair dismissal have to be presented to an Employment Tribunal within three months of the effective date of termination of employment. The new laws grant an automatic three-month extension of time provided the employee reasonably believes that the employer was following a disciplinary procedure during the first three months following the termination of employment.

The Statutory Grievance Procedure

The aim of the new grievance procedure is to reduce the number of tribunal claims by encouraging the use of an internal grievance procedure. This is achieved by preventing employees from bringing most types of employment claims until they have lodged a formal grievance with their employer or ex-employer and then waiting twenty-eight days.

There are two types of procedure, also known as the ‘standard’ and ‘modified’ procedure. Again, the standard procedure will be used in the vast majority of cases. The majority procedure will only be used when the employment has ended and both sides agree in writing to use it.

If the employer fails to follow the statutory grievance procedure, any compensation will be increased by between 10 and 50%. If the employee fails to start the statutory grievance procedure, he/she will be prevented from bringing a claim in the Employment Tribunal relating to almost all types of claims but curiously, not breach of contract claims and some discrimination claims.

If the employee fails to continue with the grievance procedure, the compensation payable in the event of a successful claim will be reduced by between 10 and 50%.

Time Limit to Bring a Claim

When the statutory grievance procedure applies, the time limit for bringing most types of Employment Tribunal claims are extended by three months subject to certain requirements having been met.

Conclusion

The Regulations are extremely complicated. Even the Government recognises that they are ‘not simple’. Once the new regulations come into force it will be essential that both employers and employees follow the minimum statutory disciplinary and grievance procedures. The consequences of falling fowl of the procedures are enormous.