Dispute regulations pose new tribunal threat
If you run a business, the latest employment law changes affect you. Derek Kemp of Liquid HR explains why and what you need to do to stay on the right side of the law.
The Dispute Resolution Regulations, updated on 1st October 2004, meant major changes to employment law for business owners to contend with and they’re perhaps the most onerous yet.
Despite how it may initially appear, these regulations are not about dealing with strikes and industrial disputes – they are aimed at handling issues between individual employees and their employer and dramatic implications for all businesses.
It has long been the requirement for organisations to have a fair procedure for dealing with conduct and capability issues in the workplace. However, until now each case has been judged on its own merits. Case law and codes of practice such as the ACAS code have given organisations a good indication regarding what would be regarded as a fair process. All of this is now completely altered.
All businesses must now develop, publicise and implement mandatory procedures in all of these areas: Contracts of Employment, Discipline, Grievance, Temporary Employees, Redundancies.
If these are not applied in every circumstance employers are automatically guilty of unfair dismissal – whereby Employment Tribunals will award a minimum of four weeks pay and increase any award of compensation by up to 50%. The Tribunal will not have the flexibility to listen to any excuses about not following the minimum requirements of the law.
The minimum award of 4 weeks’ pay will apply even if the employer has a good and fair reason to dismiss, but has simply not followed the correct process, or written the correct letter.
As a result, all employers need to take action to review their policies and procedures now.
With the rapidly rising number of claims going to Employment Tribunals the government is introducing these regulations to encourage employers and employees to resolve their differences between themselves, with the tribunal system being used by an employee only as a last resort. The fear among employers is that, in reality, they will give another opportunity for claims to be made and cases to be won on a ‘technicality’.
Unfortunately these regulations are being added to those currently in place, thereby complicating this difficult area rather than simplifying the processes.
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