Press Release
05 April 2009
New employment laws bring changes to disciplinary action, warns national law firm
Employers could face 25% increase on penalty charge for failure to adhere to new code.
National law firm McGrigors is advising business owners, directors and senior management of changes to disciplinary proceedings as a result of the impending Employment Act 2008, which comes into effect tomorrow (Monday 6 April).
From 6 April, the way internal staff disputes are dealt with will change as a result of a revised code of conduct issued by the Advisory, Conciliation and Arbitration Service (ACAS).
Businesses that fail to comply with the revised code could face a further 25 per cent penalty on any compensation payments granted. Similarly, aggrieved employees who do not follow the code will suffer a 25 per cent decrease on any award.
The code has placed the emphasis on increased flexibility to resolve any work-based issues at a very early stage, and seeks to simplify the process by which grievances and dismissals are handled.
At the heart of the new advice is a call-to-action for employers and employees to improve communication to save time and money rather than resort to expensive hearings and tribunals.
McGrigors is advising employers to follow the code to the letter, or risk disgruntled employees seeking to capitalise on the revisions to increase their award payment.
Stuart Neilson, employment partner at McGrigors LLP, said: "The revisions to the ACAS code of practice have been perceived by many as a return to a more common sense approach and a removal of the need for lengthy and costly hearings and tribunals."
"However the changes may create pitfalls for the uninformed, in particular, the 25 per cent penalty which can be imposed on both the employer and the employee."
"In a period when employers could be using the current economic climate to ‘trim the fat’ and make redundancies as a cost-cutting exercise, it is important that managers are fully aware of this code of practice or risk claims from angry and upset employees."
McGrigors' employment team spans the firm's Edinburgh, Glasgow, Aberdeen, London, Manchester and Belfast offices, comprising nearly 40 lawyers specialising in all areas of employment and pensions law.
Andy Peat
Business Development Director
Telephone: +44 (0)20 7054 2710
Mobile: +44 (0)7894 835 386
Email: andy.peat@mcgrigors.com
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