Arbitration body ACAS has published a new draft Code
of Practice for disciplinary and grievance procedures.
If approved in its current form it will take effect when
the Government abolishes the current statutory
dispute resolution procedures.
The Government is scrapping the compulsory dispute
resolution procedures it introduced in 2004 after a
consultation process in which many contributors
suggested a strengthened ACAS Code would be a
better solution.
The new ACAS Code will come into effect on the day of
the legal changes next April, the body said.
"The new code is a key element in the Government's
plans to streamline and simplify the dispute
resolution system to the benefit of employers and
employees," said Pat McFadden, minister for
Employment Relations. "It will complement the
removal of statutory measures by establishing flexible,
principles-based guidance to help resolve disputes
early."
In 2004 the Government made it compulsory for
employers and employees to follow a three step
procedure when dealing with workplace disciplinary
matters and grievances. In respect of dismissals if
the employer failed to follow the statutory procedure
the dismissal is automatically ruled to be unfair. The
aim behind the statutory procedures was to attempt to
resolve workplace disputes without the need for the
employees to resort to the Employment Tribunal
thereby reducing the burden on the Employment
Tribunals service.
The Government asked Michael Gibbons to review its
procedures and he found that the measures were a
well-intentioned failure.
"In conducting the review I was struck by the
overwhelming consensus that the intentions of the
2004 Regulations were sound and that there had
been a genuine attempt to keep them simple, and yet
there is the same near unanimity that as formal
legislation they have failed to produce the desired
policy outcome," said Gibbons in his report. "This is
perhaps a classic case of good policy, but
inappropriately inflexible and prescriptive regulation."
The Government chose to scrap the procedures with
its Employment Bill, which is expected to become law
next April, when some of its job will be done by the
ACAS Code.
Employment law specialist Ben Doherty said that
though the new Code was not a law like the old
procedures, there were still incentives for employers
to follow it.
"Unlike the current statutory procedures if the
employer fails to follow the code it will not render that
employer liable in proceedings; there is no
automatically unfair dismissal consequence as with
the statutory procedures," he said.
"There may still be consequences for companies who
fail to follow the procedure, though," said Doherty."
Though it is not compulsory to follow the Code, failure
to do so will be taken into account by Tribunals when
deciding the claim, and if it is successful the Tribunal
may increase payouts by up to 25% if the Code is not
followed. In the past the Tribunals had to increase
payouts by between 10% and 50%."
ACAS said that it had shortened the Code in line with
requests made during the Government's consultation
process. Doherty said he thought that the more
concise Code would suit everyone caught up in
disputes.
"The Code is fairly short and should be easy for all
employers to follow," he said. "The simplification that
the Code introduces is likely to be welcomed by
employers and employees alike."
ACAS's aims for the Code are similar to the aims of
the statutory procedures.
"Employers and employees should do all that they can
to resolve disciplinary and grievance issues in the
workplace," said the Code. "Where this is not possible
employers and employees should consider using a
third party to help resolve the problem. Recourse to an
employment tribunal should only be a last
resort."
The Code is in draft form for consultation and
responses will be taken until 25th July.