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Disciplinary and Grievance Procedures: Your questions answered.

Posted by: Alicja Bielawska
Posted in: Employment
Date published: 19/08/2024

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In the workplace, maintaining a fair, transparent, and consistent approach to managing employee conduct and addressing concerns is crucial. This is where disciplinary and grievance procedures come into play. For UK employers, having clear policies and procedures in place is not just a matter of best practice but a legal necessity. This article will explore what disciplinary and grievance procedures are, the differences between them, why they are essential for employers, the risks of not having them, and the importance of handling these issues properly from the outset.

What are disciplinary and grievance procedures?

Disciplinary Procedures refer to the formal processes (or set ways) employers use to address and correct an employee’s behaviour or performance that falls below acceptable standards. This can include issues such as misconduct, poor performance, absenteeism, or breaches of company policy. The disciplinary process typically involves several stages, including informal discussions, written warnings, and, in severe cases, dismissal.

Grievance Procedures, on the other hand, are used by employees to raise concerns, problems, or complaints about their working conditions, treatment by colleagues or management, or other aspects of their employment. A grievance could involve issues like discrimination, harassment, or dissatisfaction with work conditions. This formal procedure allows employees to raise their concerns, which the employer must then investigate and address in a fair and timely manner.

What are the differences between disciplinary and grievance procedures?

While both procedures aim to resolve workplace issues, they serve different purposes. Disciplinary procedures are employer-led, initiated by the employer to address issues with an employee’s conduct or performance. On the other hand, grievance procedures are initiated by the employee to address concerns about their employment conditions or treatment.

Why should UK employers have disciplinary and grievance procedures and policies?

Having robust disciplinary and grievance procedures in place is essential for several reasons:

• Compliance with the law. The Acas Code of Practice on Disciplinary and Grievance Procedures (the Acas Code) sets out the standard that employers are expected to meet. Although the Code itself is not legally binding, Employment Tribunals will consider whether an employer has followed the Code when dealing with cases of dismissal or grievances.

• Promoting fairness and transparency. Clear procedures ensure that both employers and employees know what to expect and understand the steps involved in addressing issues. This transparency helps in building trust and maintaining a positive working environment.

• Risk management. Properly implemented procedures can help prevent disputes from escalating to legal action. If disputes do go to tribunal, having followed the correct procedures can significantly reduce the risk of an adverse outcome.

• Enhancing employee relations. When employees know that their concerns will be taken seriously and handled appropriately, it can lead to increased job satisfaction and loyalty.

So what are the risks of not having appropriate procedures in workplace?

Failing to have clear disciplinary and grievance procedures in place, or not following them correctly, exposes employers to several risks:

• Financial penalties. One of the most significant risks is the potential for an uplift in compensation awarded by an Employment Tribunal. If an employer fails to comply with the Acas Code, a tribunal can increase the compensation awarded to an employee by up to 25%. This could apply in cases of unfair dismissal, redundancy, or other disputes.

• Reputational damage. Mishandling disciplinary or grievance issues can damage an employer’s reputation, both internally among employees and externally in the wider market. It might have an adverse effect on future recruitment if the employer is seen as unreasonable.

• Increased disputes. Without clear procedures, there is a greater likelihood of misunderstandings, mistrust, and disputes escalating, leading to a more contentious work environment, increased costs and time wasted for disputes.

The importance of handling disciplinary and grievance matters properly

If an employer faces a disciplinary action or grievance, it is crucial to handle it well from the outset.

Addressing issues promptly and effectively can prevent them from escalating into more serious problems or disputes, while following the correct procedures offers strong legal protection if a case is taken to an Employment Tribunal. Fair and consistent handling of issues also reinforces to employees that the company values fairness and is committed to maintaining a positive work environment, which in turn can help avoid costly legal battles and unnecessary compensation payouts.

How we can assist

Our team is experienced in advising employers on the best practices for handling disciplinary and grievance matters. We offer tailored advice and support to ensure that your procedures are compliant with the Acas Code and designed to protect your business interests.

For our employer-clients, we also offer a special product, IMD Employer Protect. This comprehensive service is designed to safeguard businesses from employment law risks. It includes the following:

1)   Audit. We will analyse your employment contracts and procedures. If needed, we will help in implementing the necessary changes to ensure compliance with current regulations.

2)   Ongoing unlimited legal advice. We will be “on call” for you. This means that, if necessary, you can call us and seek advice on employment law at no additional cost.

3)   Documents. If necessary, we will provide you with standard letters in the most common employee matters at no additional charge.

4)   Insurance (optional). We offer an insurance policy that will cover the costs related to employee claim court proceedings, settlements, and awarded compensation by the Employment Tribunal. We are neither a broker nor an insurer, but we cooperate with a broker who is ready to prepare an offer for you.

5)   HR management software (Free of charge!) We offer HR software with all the tools necessary for effective HR management. The link to the video with a short presentation can be found here: https://www.youtube.com/watch?v=g7wg0R22ycE 

This service provides financial certainty, personal support from qualified solicitors, and is customisable. In particular, we are flexible in terms of the length of your contract with us to meet your needs!

Contact us today to learn more about how we can assist you in managing disciplinary and grievance issues effectively, protecting your business, and fostering a positive working environment.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

To find out more about our services, visit Employment section of our website.

Call us now to discuss your case 0330 107 0106 or email us at business@imd.co.uk.