New ACAS Code on Discipline and Grievance

ACAS has recently published a revised draft Code of Practice on Disciplinary and Grievance Procedures (“the Code”). The Code remains in draft form but provides an interesting insight into how matters of discipline and grievance may be dealt with from April 2009.

The Code will form part of the new regime on managing discipline and grievances in the workplace to be brought in by the Employment Bill. The Employment Bill will repeal the current statutory dispute resolution procedures brought in by the Employment Act 2002.

The current draft of the Code provides that:

• It will not apply to redundancy dismissals or those brought about due to the expiry of a fixed term contract.
 
• Both parties will be encouraged to use independent third parties (including external mediators) to resolve disputes.

• There should be emphasis on employees behaving consistently and reasonably.

• When developing disciplinary and grievance procedures, employees (or their representatives) should be involved.

• It is important that employees and managers understand what the procedures are, where they can be found, and how they are used.

• A failure by the Employer to follow the Code can result in an increase to compensation awarded of 25%. A failure by the Employee to follow the Code can result in a decrease to compensation awarded of 25%.

• Employees that wish to raises grievances should do so in writing and set out the nature of the grievance.

• Where an employee raises a grievance during a disciplinary process the disciplinary process may be suspended in order that the grievance can be dealt with.

Employers would be well advised to familiarise themselves with the Code, and to take active steps to ensure that their businesses are prepared for the changes due on 1st April 2009. A copy of the code can be found here