With the Employment Bill approaching the end of its journey through the UK Parliament, Eversheds international law firm believes it will have a significant impact on dispute resolution within the employment relationship.

Background

In 2006 the Government recognised that the statutory dispute resolution procedures, which govern many workplace dismissals and grievances, needed simplifying. An independent review concluded that the procedures had led to problems escalating, making the parties defensive and more likely to consider issuing proceedings, rather than encouraging early resolution which was their stated aim. As a result, at the end of 2007 the Government introduced the Employment Bill setting out a number of changes to the law.

The Employment Bill

It is intended that the Bill will repeal the statutory dispute resolution procedures, including the rule that says a dismissal without following the dismissal procedure is automatically unfair. In their place, tribunals will be given the power to adjust awards of compensation by up to 25 per cent for an unreasonable failure to comply with any provision of the ACAS Code of Practice on Discipline and Grievance (ACAS stands for the Advisory, Conciliation and Arbitration Service, a Government funded but independent body which supports good employment relations in the UK).

It is anticipated that relevant provisions within the Bill will come into force in April 2009. Consequently, the ACAS Code has beenrevised and a draft has been issued for consultation with a view to it coming into effect at the same time.

The draft ACAS Code

The draft Code is short and concise. In contrast to the existing Code of Practice, which runs to 48 pages, the new draft Code is just 8 pages long. ACAS will however also be publishing "fuller, freestanding, non-statutory guidance" which will provide supporting information.

The draft Code consists of three main sections:

  • a one page introduction, which sets out some guidelines for employers dealing with discipline and grievance
  • a section on discipline, which sets out the key stages of handling disciplinary problems in the workplace under the headings:
  • establish the facts
  • inform the employee of the problem
  • hold a meeting
  • allow the employee to be accompanied
  • decide on appropriate action
  • right of appeal
  • a section on grievances, which sets out the key stages of handling grievances in the workplace under the headings:
  • let the employer know the nature of the grievance
  • hold a meeting
  • allow the employee to be accompanied
  • decide on appropriate action
  • allow the employee to take the grievance further if not resolved.

Looking to the future

Perhaps the most notable change in the draft Code is the absence of any requirement for an employee to raise a grievance in writing if they want to bring a subsequent tribunal claim. This will have a significant impact on how grievances are dealt with in the workplace given that, at present, the statutory procedures do require grievances to be put in writing.

How tribunals approach the Code, their ability to adjust awards and the significance of the forthcoming guidance remain to be seen. Nonetheless, if the draft Code stays in or near its current form, there is no doubt that it will be more workable than the statutory procedures. Welcome news indeed for employers and advisers alike who have grappled with the complexity of the statutory procedures over the past few years.

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