A new Code of Practice on handling workplace discipline and grievance matters has been published by ACAS.
The code which forms part of the overall reform of disciplinary and grievance procedures comes into force next April. The changes relate to the way employers must handle discipline and grievance following the abolition of the statutory discipline and grievance procedures (SDGP's). The procedures are being replaced by a new Code of Practice issued by ACAS, and employers who fail to follow the Code could find compensation payments increase by up to 25% if an employee is successful with an employment tribunal claim.
Why are the changes being introduced?
The changes continue to encourage employers and employees to resolve disputes in the workplace rather than pursue them in an employment tribunal. The SDGP's' are being abolished because they did not achieve their hoped for objective of reducing the number of employment tribunal applications. Indeed the number of applications rose because employers became even more cautious than before, ensuring that procedures were followed rather than trying to resolve the problem itself.
How the Code works in Disciplinary Proceedings
The new Code applies to all formal disciplinary proceedings, including those where a Written or Final Written Warning is given. This contrasts with the current situation under the SDGPs, which only apply to a disciplinary meeting which results in an employee's dismissal.
Significantly, the new code only requires employers issue a first and then final written warning prior to dismissal. The concept of the verbal warning has been abolished in entirety. Theoretically this should make dismissing an easier. However, the code still recommends that employers attempt to resolve workplace difficulties informally. The need for effective counselling and communication has never been more apparent.
Whilst the new procedures seem sensible and straightforward, there is a danger to employers, and particularly SME's with little experience in handling disciplinary matters. Such employers may not understand that the whole of the disciplinary process, and not just the final act of dismissal, is subject to the revised ACAS Code, and that failure to conduct an early disciplinary hearing properly could be taken into consideration if the employee is later dismissed.
To sum up
The new ACAS Code replaces statutory discipline and grievance procedures from 6th April 2009;
The Code applies to all disciplinary action, not just to dismissals;
The Code does not apply to redundancies or termination of fixed term contracts;
Failure to follow the Code will still mean a possible increase in compensation of up to 25% if an employee is found to have been unfairly dismissed and the employer has failed to follow key steps of the code.
Please contact us on 0845 665 3006 for further guidance on the new procedures ahead of the proposed April 2009 changes
