Employers should now be updating their contracts of employment and employee handbooks to take into account the imminent changes to the statutory disciplinary and dimissal procedures due to come into force in April. Employers who fail to do this and then fail to comply with their own policies will be at risk of breach of contract claims, even though they may be satisfying the new procedures.
The statutory disciplinary and grievance procedures will be repealed from 6 April. This is welcome news for employers because the procedures have been a bureaucratic nightmare and a real trap for the unwary.
They will not be replaced by new procedures. However, ACAS has issued a new Code of Practice on dealing with disciplinaries, dismissal and grievances, which should be followed by employers.
The bad news for employers is that employees will now be able to bring a claim without first raising the matter with them. The good news is that the rules are much less prescriptive. There is far greater emphasis on employers attempting to resolve disputes informally, and through the use of mediation.
Currently, a failure to follow the statutory procedures will mean any dismissal is automatically unfair. The Tribunal is obliged to award between 10% and 50% increase to compensation as a result. In future, failure to follow the Code will not make the dismissal automatically unfair. Instead, the Tribunal will consider the fairness in all the circumstances and any compensation may be increased by up to a maximum of 25%, at the Tribunal’s discretion.
In addition, an employee who is mid-way through the procedures has 6 months from termination to bring a claim. In future, an employee will have just 3 months to bring a claim. An extension of time on that 3 months’ limit will only be granted at the Tribunal’s discretion.
The majority of the Code should not come as a surprise to employers. Employers should however:
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Consider whether or not existing polices and procedures require amendment. Employers who fail to do this and then fail to comply with their own policies will be at risk of breach of contract claims, even though they may be satisfying the new Code.
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Read and familiarise themselves with the Code.
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Ensure that managers are updated on any changes to procedure. Now may be a good time for a reminder on handling performance, disciplinary and grievance issues.
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Consider whether someone in the organisation should be trained as a mediator.
For more information please contact Donna Purchase by clicking here. We will be carrying out reviews of disciplinary, dismissal and grievance procedures for a reduced fixed fee from now until the end of March 2009.
