New employment regulations came into force in
UK in October 2004 in
form of
Employment Act 2002. This article explains
impact of these new rules on your business. It also examines how, as an employer, you can turn
new employment legislation to
advantage of your business.In order to understand how to use
new employment regulations to your advantage, we first need to look at how
new laws differ from
old employment legislation.
In
old days, an employee might be dismissed without an appeal and
first sign of trouble for
employer wouldn't come until
employee put in a claim for unfair dismissal.
Or an employee might have been unhappy and so decided to resign. Sometime afterwards, you as
employer could suddenly find
employee putting in a claim for constructive dismissal.
For
employer, written procedures provided a good defence but employment tribunals still made their own decisions and defending your business could cost a lot of time and money.
With all this in mind,
Government decided to do something to reduce
number of employment tribunal claims. In doing so, they ended up introducing thirteen new ways that an employee can claim against an employer at an employment tribunal!
All these new ways of claiming at an employment tribunal are based on documentation. For example,
tribunal will look at whether certain letters were written and why, or they will ask for proof of whether a meeting was held at a sensible time and place.
The new employment laws mean that if
paperwork is not right, then
employment tribunal can class
employer as guilty - without
need for a hearing!
In exchange for this,
new legislation gives employers new ways of protecting themselves against tribunal proceedings. To understand how you can protect your business, we need to take a look at
new employment regulations in more detail.
The new employment regulations state that employees can no longer claim constructive dismissal unless they can show that they have tried, and failed, to resolve
problem with their employer.
Employees can no longer claim against their employer for unfair dismissal unless they can show that they have exhausted every appeal procedure offered by their employers and still failed to resolve their differences.
However, if an employer does not have a written dispute resolution procedure then
employee can go straight to an employment tribunal and obtain an automatic award!
On that basis, it should be obvious that all employers need to issue a dispute resolution procedure to all their employees in order to avoid
risk of automatically losing at an employment tribunal.
The good news is that a dispute resolution procedure needn't be that difficult to implement.
The most basic dispute resolution procedure is simply a structure by which an employee can register a complaint against you. This need be nothing more than a statement from you,
employer, saying "If you have a grievance or feel you have been wrongly disciplined, then put any appeal or grievance in writing to me."