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."