Advice & information • Employment law

New rules on disciplinary and grievance issues

In April 2009, the much criticised statutory dispute resolution procedures were repealed. Instead employers must comply with a new ACAS Code of Practice.

The new Code sets out the principles for handling disciplinary and grievance situations in the work place. These principles do not apply to dismissals for redundancy or the expiry of fixed term contracts.

The principles are similar to the old statutory ‘three step’ procedures ensuring that disciplinary and grievance issues are dealt with fairly. The Code specifies that employers should carry out such investigations that are necessary to establish the facts; that the employee should be informed in writing of the basis of the problem and invited to give their side of the story before any decision is made. An employee must be offered the opportunity to appeal adverse decisions. An employee still retains the right to be accompanied to any formal disciplinary or grievance hearing by a colleague or trade union representative.

A significant feature of the new Code is that whether the actions of the employer are justified and reasonable will depend on the circumstances of each case and a Tribunal will take into account the size and resources of the employer when considering this.

The most important changes which result from the repeal of the statutory disciplinary and grievance procedures are:

1. The concept that it is automatically an unfair dismissal if an employer fails to follow the new Code has been removed;

2. there is no longer a requirement for an employee to raise a grievance and wait 28 days before bringing a Tribunal claim;

3. in future Tribunals will be entitled to adjust upwards or downwards any awards made up to 25% in view of an unreasonable failure by either an employer or an employee to follow the new ACAS code.

Although the new rules come into force today there is inevitably a transitional period and the relevant ‘trigger event’ will decide which regime should apply. For grievances, the date the matter complained about by the employee will be the trigger event. For dismissals and disciplinary action the trigger event will be either the date of the dismissal or the date the employee is invited to a disciplinary meeting.

FURTHER INFORMATION

For a copy of the new Code or guidance on the changes or any other employment advice, please contact Richard Maloney.