Navigating employment disputes is daunting and often challenging for you and your business. Failing to manage a workplace conflict appropriately can lead to costly legal action and strained professional relationships. This article will provide practical tips to help you manage your disputes fairly and efficiently while protecting your business.
Preventing Disputes
Preventive systems and processes are essential to mitigating and managing employment disputes. An appropriate process will help you manage employees and resolve issues early.
1. Implement Policies, Training and Precedents
You should have an employee handbook detailing your business expectations, values, policies and procedures. The handbook should provide you and your employees with clear guidelines on workplace behaviour and the procedure to raise a dispute. Setting a clear guideline will ensure early detection and mitigate unexpected issues.
Furthermore, provide appropriate training to your managers on how to deal with a disgruntled employee. Your managers are likely the first port of call for an employee raising an issue. As a result, it is important they understand and uphold your procedure.
If your managers are equipped with the right tools, they can help resolve issues before they escalate.
Precedent documents will ensure you do not go into the process blind and make mistakes. You should have precedents for notices, disciplinary processes or warning letters. A precedent provides guidance, ensures you have appropriate responses and mitigates legal risks.
2. Ensure Legal Compliance
You should ensure your contracts, precedents, policies, and procedures follow New Zealand's employment laws. You should contact an experienced lawyer to review your documents ahead of time so they can ensure everything is in order. This step ensures compliance and prevents you from breaching your employer obligations.
3. Be Fair and Impartial
It is important to always act fairly and impartially towards your employees. Your dispute process should reflect these values. Acting fairly and impartially would look like the following:
- carrying out your investigations with an open mind;
- allowing employees the chance to respond to allegations;
- providing all evidence to the employee so they can make an informed response; and
- ensuring any action is proportionate to the issue.
4. Have a Dedicated Disputes Officer
Designating a dispute officer can be an effective way to manage employment issues internally. The officer should be responsible for maintaining all your employment policies and procedures and handling issues in the first instance. Employees may feel more comfortable raising concerns with an independent third party. Issues raised internally enable your designated officer to investigate and bring resolution, avoiding the time and costs of legal proceedings.
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Managing a Dispute
It is frustrating when a dispute escalates between you and an employee. When conflicts arise between you and an employee, your working relationship becomes strained, leading to a taxing and time-consuming situation for all involved. Here are some helpful tips for managing an ongoing dispute effectively.
1. Open and Courteous Communication
You must maintain open communication with your employee. When an issue arises, you should discuss with your employee what went wrong or, in turn, their concern. Open and courteous communication supports reaching a quick and easy resolution. You are more likely to agree if each side understands the issues and remains respectful.
2. Seek Professional Advice
Before taking action, you should always seek legal advice. A lawyer will guide you on your rights and obligations to your employees. They will ensure the steps are legal and mitigate the risk of further action against you.
Failing to seek legal advice may result in you taking the wrong step and breaching your employer's obligations. Should a dispute escalate and proceedings be brought against you, your lawyer can help guide you and get the best possible outcome.
3. Document Everything
Keeping written records is an important dispute management tool. When an issue arises, document who, when, what, how, and why as soon as possible. Think of your documentation as evidence should further action be taken. Your documentation is essentially a written history of past misconduct or issues.
4. Consider All Options
When deciding your approach to a dispute, you should consider all resolution options. There are many ways to resolve employment disputes, including:
- alternative dispute resolution (ADR), such as negotiation and mediation;
- the Employment Relations Authority; and
- the Employment Court.
You should weigh the benefits and shortcomings of each approach before commencing. Having general knowledge will help you manage the dispute in the most cost-effective and time-efficient way.
Negotiation and mediation are the most flexible, time effective and least costly resolution methods. ADR also protects and preserves your relationship with the employee. You should engage a lawyer to help you negotiate or mediate with your employee. The Employment Relations Authority and the Employment Court provide binding determinations. However, the process can be dragged out and have higher costs.
Key Takeaways
Appropriately managing employment disputes is an important part of running a business. The overarching tips for effective management are:
- install preventative measures to support both yourself and your employees;
- seek legal advice before making a decision or taking action;
- be open, communicative, and courteous, and
- document everything.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.