This free article about resolving disputes at work for employees, and employers (and trainers and consultants) was originally produced by the UK DTI (Department of Trade and Industry - now BERR, Department of Business Enterprise and Regulatory Reform) to support and inform employers and employees in relation to the law effective 1st October 2004 giving new rights to employers and employees. See also the article on employment termination and termination letters on this site, which provides ideas for developing your own procedures to overlay the UK law process outline.
As at August 2008 the findings of an independent review of the (UK) employment dispute resolution system were still subject to government process.
Full details of the current law and interpretations are here: http://www.berr.gov.uk/employment/Resolving_disputes/
Meanwhile the process outlined below continues to serve as a basis for best practice in this area.
If in doubt contact ACAS - ACAS National Helpline (UK): 08457 474747.
Disputes at work are expensive, stressful and disruptive for both employers and employees alike. But both employers and employees agree that early, constructive discussion can produce solutions before problems escalate and working relationships break down. If the dispute is not solved and results in a tribunal case, both sides face a protracted, unsettling experience.
With this in mind, the UK Government introduced the Employment Act in 2002, which set out some solutions to these problems that face many thousands of businesses and employees each year. The main principles that underpin the legal details are very simple:
These laws will be fully implemented in October 2004; this background note will provide you with an overview of the changes that will affect employers and employees and provide information on where to go for more help.
Talk it through when it happens.
Many employers already have fair and comprehensive disciplinary and grievance procedures to resolve workplace disputes. They recognise that discussing the issues in a structured way can clarify the problem, identify a solution and avoid employment tribunal cases. However, around 800,000 firms either have inadequate or non-existent procedures in place. Therefore, the Government established new statutory minimum disciplinary and grievance procedures in the Employment Act 2002.
Last year UK employment tribunals received over 94,000 claims based on work disputes, ranging from problems over pay and conditions to racial and sexual harassment. Yet research shows that in over a third of those cases the individual and manager have not discussed the problem at all.
From October 2004, employers and employees are required to follow a minimum three-stage process to ensure that disputes are discussed at work. A similar three-part structure applies for both disciplinary and grievance matters.
This implies that you make sure you know the facts, can explain them to the other person, and let them respond.
These are intended to be minimum standards, which must be met by all UK employers. But these new minimum standards will not undermine the fundamental requirement of fairness and acting reasonably in dismissal cases. Providing the minimum standard is in place, firms are free to personalise the procedures to suit their own business needs.
ACAS (the UK's Advisory, Conciliation and Arbitration Service) provides valuable and straightforward best-practice advice on solving disputes (see, for instance, its Code of Practice on Disciplinary and Grievance Procedures).
It would be wrong to label these procedures as just increasing the red-tape for small firms. Implementing the laws will create new rights and responsibilities for both employers and employees. Employees will not be able to make claims to employment tribunals about grievances unless they have previously raised a formal grievance at work. The time limits associated with making an employment tribunal application will be extended to allow these discussions to continue. But employers who dismiss staff without using the statutory procedure face an automatic finding of unfair dismissal. Furthermore, if either party has not completed the relevant procedure, the tribunal may increase or decrease the compensation by between 10%-50% (depending on which party is at fault).
Businesses stand to make considerable gains from solving disputes through discussion. There is strong evidence to suggest that sensible dialogue in the workplace can lead to increased productivity, lower staff turnover, and avoid costly tribunals. The UK average cost of a tribunal to an employer is at least £2,000 (UK DTI figures 2004), including lost management time and legal expenses.
And individual employees can suffer too. Litigation is stressful - nearly 50% of tribunal applicants end up in lower status or lower-paid employment afterwards, and almost a quarter are unemployed following the case.
Of course there will be situations when this type of discussion will be inappropriate. Neither party has to follow the statutory procedures in the following circumstances:
Check with ACAS for updates and revisions and interpretation of this 2004 legislation.
Further free information and guidance (UK) - let me know other national contact points for similar impartial law information and guidance:
Employment termination, dismissal, grievance procedures, samples, letters, examples and templates - general guide and UK-specific letters examples and templates for employers and employees.
ACAS National Helpline (UK): 08457 474747
Discipline and Grievance DTI Guidance for Small Firms - (pdf) (Note this is © Crown Copyright, Source DTI)
Guidance on the Employment Act 2002 (Dispute Resolution) Regulations 2004 (pdf) and associated provisions in the Employment Act 2002. Full comprehensive DTI dispute resolution regulations guide. (Note this is © Crown Copyright, Source DTI)
Employee guide to grievance procedures including examples of grievance letters templates, samples. DTI guide. (Note this is © Crown Copyright, Source DTI)
plus all the other information about communications, relationships and management on the businessballs website.
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