Fergal Dowling, head of employment law at the Birmingham office of national law firm, Irwin Mitchell, discusses some new legislation for employers but it will be good news.
IT IS NOT unknown for some employers to look heavenwards when they hear that new legislation is heading their way.

This time, however, they may breathe a sigh of relief as the new rules will be about simplification of existing regulation.

Introduced in 2004, the Dispute Resolution Regulations promoted resolution of employment disputes within the workplace, surrounding grievances and disciplinary and dismissal issues, via a three-stage process:

1. Give employee a written statement of allegations and invite to a meeting - employee given reasonable notice, advised of right to be accompanied by a union representative and provided with copies of all related documents

2. Meeting - discuss allegations, allow employee to respond and inform employee of decision and right of appeal

3. Appeal - employee appeals, employee must make all reasonable efforts to attend the appeal (preferably held before more senior management) and employee informed of decision.

This was considered preferable to an employment tribunal. A report on claims received for 2007/08, however, indicates employment tribunals rose 42% above the anticipated levels.
The Dispute Resolution Regulations were viewed as overly complicated, even inflexible, with tough sanctions if it were deemed that an employer or employee had not followed the procedures.

Sanctions included:

· automatic unfair dismissal if employee was dismissed by employer who had not followed the process

· increase in compensation of up to 50%

· employees barred from employment tribunal claim if they had not begun the process by lodging a grievance first.

One element which led employers and employees to be at loggerheads was the insistence that every detail was put in writing.

Onerous in some work environments, it resulted in parties digging in their heels contrary to the expectation that informal meetings and conversations would lead to acceptable agreement.
Mediation was sought in some instances in a bid to resolve disputes without negotiating the cumbersome Dispute Resolution Regulations.

The Employment Simplification Bill, part of the Employment Act 2008, comes into force, probably in April 2009. This will repeal the Employment Act 2002 (Dispute Resolution) Regulations 2004 and, in so doing, repeal the three step process for disciplinary and dismissal procedures raised by employers and grievances raised by employees.

Key benefits of the Employment Simplification Bill will include administrative savings for business (estimated at £180M per annum), time and associated cost savings for employee representative bodies, individuals and businesses, and a straightforward, transparent enforcement and penalties regime, particularly in relation to the National Minimum Wage.

Employers and employees may well believe that the greatest benefit will be the increased flexibility to handle discipline and grievance issues within their own workplaces. They should remember, of course, that before the Employment Simplification Bill coming into force, the existing Dispute Resolution Regulations will still apply.

Call 0870 1500 100 or e-mail fergal.dowling@irwinmitchell.com