Employment Law Update (February 2009)

All change on handling discipline and grievances

6^th April sees big changes in the law that applies to discipline and grievance handling in the workplace.  On the one hand, the statutory dispute resolution procedures are being abolished.  On the other hand, the introduction of a new ACAS Code on discipline and grievance handling will amount to much the same thing in practice.

What is happening?

From 6^th April, the government is abolishing the "statutory dispute resolution procedures" which apply when dismissing employees and dealing with grievances. They are being replaced with an updated ACAS Code of Practice, which will have legal force.

The penalty for failure to comply with the new ACAS Code when disciplining or dismissing an employee could be:s

• A finding of unfair dismissal in an employment tribunal;
• Compensation increased by up to 25%.

For grievances, employees will no longer be required to pursue a grievance through their employer's procedure before bringing a claim in an employment tribunal.

Why does this matter?

The abolition of the "statutory dispute resolution procedures" does not mean that regulation of employment procedures will become less strict.  The new ACAS Code will work in much the same way as the statutory procedures work now. It may be even harder for employers to get disciplinary action right, as the Code applies to all formal disciplinary action, not just to dismissals.

What does this mean to me as an employer?

The good news is that clients who use Mentor disciplinary and grievance procedures already meet the requirements of the new Code.  However, it is more important than ever that clients seek and take our advice at each stage when taking disciplinary action or when dealing with grievances.

If your business does not use Mentor procedures, our consultants can audit your policies to ensure compliance.

How can Mentor help?

• Clients will receive a mailing during March explaining the new procedures;
• Our Telephone Advice service is available 24 / 7, and clients should take advice when considering taking any disciplinary action against an employee or handling grievances (calls may be recorded);

Our Employment Law Consultants can audit your policies and discuss the implications of the changes in detail.