Red tape warning – HR rule changes

EVERY company will at some point have to deal with a dispute in the workplace – whether it’s personality clashes, issues with pay or team rivalry.

And while every problem will need resolving, the way disputes are formally resolved in the workplace is about to change. Rachel Williams from hr180 looks at what the changes will mean for your business and how you can prepare for them.

“On April 6, the 2008 Employment Act came into force, changing the way that dispute resolution is handled in the workplace.

The act repeals the 2002 Employment Act, which was criticised for its onerous and draconian procedures and complicated nature, which resulted in never-ending legal arguments and saw the number of tribunal claims increase significantly.

The overarching goal of the new act is to sweep away unnecessary employment law and encourage early, informal dispute resolution in the workplace – reducing the need for expensive and lengthy employment tribunals.

What are the key changes of the 2008 Employment Act?

• An end to the existing three-step procedure for dealing with discipline and grievance issues. A dismissal will no longer be deemed automatically unfair because the statutory procedure hasn’t been followed.
• There is no need to bring a grievance before bringing a claim – previously it was necessary to submit a grievance in writing and failure to follow the grievance process could lead to increased/reduced awards. This stipulation has now been removed although a tribunal will still expect to see evidence of what informal methods have been offered to resolve a dispute before deciding upon any award.
• The extended time limits will no longer apply – previously it was necessary for 28 days to have passed between the grievance being lodged with the employer and filing proceedings at the Employment Tribunal.
• Employers will be expected to follow the good practice advice set out in the revised ACAS Code of Practice. If they don’t, tribunals will still have the ability to increase the employee’s compensation by up to 25 per cent.
• There is no ‘modified procedure’ (previously used when the employment had ended and the standard procedure had not already been completed).
• There is much more emphasis on resolving disputes informally or via mediation.

What do you need to do?

• Review your policies and consider amending them if necessary. For example, removing any time frames that you may have specified. If your company policy currently stipulates specific turnaround times, then issues still need to be resolved as soon as possible -failure to do so may lead the tribunal to find a dismissal unfair on procedural grounds if you fail to follow your own procedures.
• Consider whether and how to involve employees/reps in developing policies and procedures as advocated in the Code.
• Train your line managers on using the new Code – if you are unclear on the correct procedure to follow, seek professional advice.
• Keep an open mind about new ways of resolving work problems with colleagues – open and honest discussions can, in most cases, be the most effective way of resolving any issue.

Remember that the existing statutory procedures will not disappear overnight. Any disciplinary or grievance initiated prior to April 6 must observe the three-step procedure.”