This year has seen the abolition of the statutory dispute resolution procedures which were the guidelines used to tackle disciplinary and grievance issues in the workplace.

They were replaced by ACAS’s revised Code of Practice on Disciplinary and Grievance Procedures. But what does this change mean for employers and employees?

The old regime To comply with the statutory dispute resolution procedures, an employer generally needed to follow a three step procedure when considering dismissing or taking disciplinary action against an employee or when a member of staff raised a grievance.

This procedure involved the employer or the employee writing to each other to set out the issue.

The employer then held a meeting with the individual concerned before writing to them with their decision and giving the employee the opportunity to appeal.

Failure to comply with these steps could have led to a finding of unfair dismissal causing the compensation award to be hiked by up to 50 per cent.

The statutory dispute resolution procedures were criticised for formalising employment disputes at an early stage, causing litigation as to whether or not all of the steps had been complied with.

The new regime The new code, which does not apply to redundancy cases or the renewal of fixed-term contracts on their expiry, sets out basic standards of fairness that must be adhered to by employers and employees alike.

It is hoped that the code’s principle-based approach will mean fewer disputes will reach tribunals.

The three-step procedure is the same under the new regime as it was previously.

However, a failure to follow its provisions will not automatically result in a penalty of any kind, although either party’s unreasonable failure to abide by the code will allow a tribunal to adjust any award of compensation by up to 25 per cent.

But there are some important differences under the new set of regulation including: n Dispute resolution procedures should be in writing n Employees and their representatives should be involved in the development of the procedures n The procedures should be understood by the employees n Disputes should be resolved informally where possible, using a mediator if required n Employers are now under an obligation to investigate the facts of the case n Employees have the right to call witnesses to give evidence during formal meetings if they give advance notice to the employer The new regime will bring benefits to employers and their staff. Workers will no longer have to lodge a grievance and wait 28 days before lodging a claim and their managers will no longer be found guilty of automatic unfair dismissal if they fail to follow the code.

The code has also been drafted vaguely lacking mandatory requirements or directions and instead uses ambiguous language such as ‘it may be appropriate to’ and ‘it is advisable to’.

This lack of clarity will inevitably lead to appeals regarding the meaning of various provisions within the code.

It is also unclear whether the code applies to ex-employees.

What should be done now?

Employers and employees need to be aware that the old regime will still apply if disciplinary proceedings or action giving rise to a grievance started before April 6, 2009.

Written disciplinary and grievance procedures should now put in place by employers if they do not have them and they should seek input from their employees and representatives.

If an employer already has written procedures, they should check they reflect the principles set out in the code.

Employers should also train their employees and managers to understand the procedures and be aware of further developments in tribunal cases that will expand on the principles set out in the code.

o Contact: Alison Melton, Blake Lapthorn, 01865 248 607, e-mail alison.melton@bllaw.co.uk