Wake up HR: it's time to check dispute policies
The UK employment relations minister pens an exclusive report for Personnel Today about the implications of the Government's imminent dispute resolution law.
Good communication is key to maintaining successful relationships in the workplace. A problem that's ignored can escalate, and ultimately result in an employment tribunal, which can be expensive, stressful and disruptive for all concerned.
This is why it is so important to provide a robust framework for employers and employees to handle disputes as and when they happen, enabling tribunals to take their proper place as the backstop for individual employment rights rather than being the first port of call.
To standardise procedures the Government has drawn up a three-step framework that all employers must enshrine in their HR practice from 1 October 2004.
In developing this new structure, we have worked closely with small business representatives, relevant trade associations and unions, employer bodies, the Citizen's Advice Bureau (CAB) and the Advisory Conciliation and Arbitration Service (Acas).
The procedures are clearly set out and easy to follow. First, a letter should be sent informing the employer or employee of the reasons for the disciplinary action, dismissal or grievance.
Second, a face-to-face meeting between the two parties should be arranged, allowing them time to consider the other's complaint beforehand. After that meeting, the employer must inform the employee of the decision, and of their right to appeal.
Third, if needed, an appeal meeting should be set up. In dismissal or disciplinary action procedures this can happen after sanctions have been imposed. In either procedure the employer must inform the employee of the outcome of the appeal. Only after these steps can the parties go on to an employment tribunal.
Firms are free to personalise the procedures to suit their own business needs. However, I would urge all employers to check their existing procedures and ensure that they meet our minimum standard, because if a case does end up at an employment tribunal and the minimum procedure has not been followed, penalties will be imposed. For the employer, this could mean paying financial costs.
These procedures should ensure that most disputes are discussed in the workplace, allowing each party to attempt a resolution of the issue to everyone's satisfaction. In some circumstances, however, the minimum standards do not apply - if, for instance, either party is abusive or violent.
Undoubtedly, these standards are already being met by the large majority of employers. This is particularly true in companies that have an HR function, because human resource departments understand the value of good communication and following standard procedures. But figures show that there are still around 800,000 firms that either have inadequate or non-existent procedures in place to deal with disputes. Last year, employment tribunals dealt with 98,000 claims based on work disputes, ranging from problems over pay and conditions, to racial prejudice and sexual harassment.
The Government hopes that its new legislation will encourage more openness and communications in businesses, and we look to HR departments to check that their procedures meet the new minimum standard.
www.dti.gov.uk/er/resolvingdisputes.htm
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