Statutory Dispute Resolution Procedures - The End Is In Sight

On 13th November 2008 the Employment Act 2008 received Royal Assent. When Section 1 is brought into force – likely to be April 2009 – the Statutory Dismissal and Disciplinary Procedure and Statutory Grievance Procedure will be repealed.

The Procedures were introduced by the Employment Act 2002 in an attempt to reduce the number of Employment Tribunal claims. In fact, they have had the opposite effect and have given rise to many technical arguments over procedural points – something of a lawyer’s paradise! Failure to follow the correct procedure can result in an employee losing the right to make a claim. An employer who fails to jump through the required hoops risks any subsequent dismissal being held to be automatically unfair. An employer or employee who fails to follow the relevant Procedure is also at risk of being penalised by the compensation awarded being increased or decreased (as appropriate).

Once the new law is in operation, employees will no longer face being barred from lodging a claim because they have failed to raise a grievance first, and an employer's failure to follow the correct procedure will not result in a finding of automatic unfair dismissal. The rule relating to the increase or reduction of compensation is retained, but in a modified form. An Employment Tribunal will be required to consider where the employer or the employee has unreasonably failed to comply with the relevant ACAS Code of Practice. If there has been such a failure, the Tribunal will have power to increase or decrease any compensation awarded by up to 25% if it considers it just and equitable to do so.

The Secretary of State for Business, Enterprise and Regulatory Reform has just approved the draft ACAS Code of Practice which will have effect under the new law. The draft Code can be found at ACAS

The Procedures envisaged by the draft Code are not that different from the Statutory Procedures. An employer or employee who blatantly chooses to disregard the Code will remain at risk of incurring a financial penalty.
If you would like to know more, please contact Nick Crook or Gareth Pobjoy.

Filed: 29/11/2008 18:34:57