Partner Article

Employment Act 2008

Employment Act brings changes to dispute resolution procedures into force

With Watson Burton LLP Law Firm

On 6 April 2009, the Employment Act 2008 (the 2008 Act) and Acas Codes of Practice on Disciplinary and Grievance Procedures (the Acas Code) came into force, rewriting the law currently in force on statutory disciplinary, dismissal and grievance procedures.

Previously, before an employee could qualify to bring a tribunal claim, they had to show that they had followed the Statutory Dispute Resolution Procedures set out in the Employment Act 2002, and the Employment Act 2002 (Dispute Resolution) Regulations 2004 (the Regulations). This legislation was intended to encourage parties to consider an early, out of court settlement before bringing a tribunal claim, however it did not have the desired effect.

The repeal of the Statutory Dispute Resolution Procedures and the introduction of the new Acas Code has begun to change the way that disputes and disciplinary matters are dealt with in the workplace. Accompanying the Acas Code is a new, non-prescriptive guide which provides information on handling discipline and grievance solutions in the workplace. The Acas Code provides practical voluntary guidance for handling disciplinary and grievance situations in the workplace.

Under the new Code, an employee is not prevented from bringing a claim if they have not raised a grievance with their employer and waited 28 days, as was required under the old Statutory Dispute Resolution Procedures. Likewise, a dismissal is no longer automatically unfair if the employer fails to follow the Acas Code.

Whilst a failure to follow the Acas Code will not in itself make an employer automatically liable to proceedings, Tribunals will take the Code into account when considering cases. They will also be able to increase or decrease compensation by up to 25% where they consider that there has been an unreasonable failure by either party to comply with the Acas Code.

The Acas Code replaces the controversial Regulations. Essentially it removes the legal obligation to deal with workplace discipline or grievance issues in a regimented way, putting the onus on employers and employees to deal with problems early on by communicating with one another.

It is important that employers are aware of when the new Acas Code will apply. Transitional provisions are in place to deal with matters which were ongoing as at 6 April 2009. Employers should consider the provisions carefully and seek specific legal advice if necessary. Put simply, it is clear that, if a disciplinary or grievance procedure has commenced before 6 April 2009, the Regulations will continue to apply.

Fairness and transparency is the aim of the Acas Code and employers should be reminded to keep records of meetings and exchanges and make written procedures known to all employees.

The Acas Code has now been approved by Parliament. The final approved version can be downloaded here: www.acas.org.uk\code2009.

The 2008 Act will also amend the Employment Tribunal Act 1996, giving Acas the discretion to provide a conciliation service only where they deem it necessary, rather than before proceedings have been brought, which will allow them to prioritise their case load.

If you have any comments or questions about this article or any employment related matters, please contact Katie Usher of Watson Burton LLP at katie.usher@wastonburton.com.

This was posted in Bdaily's Members' News section by Ruth Mitchell .