Why is it important to follow the ACAS code?
It can avoid a potential claim
ACAS introduced the Code of Practice on Disciplinary and Grievance Procedures to help businesses and resolve employees’ grievances in the workplace. Dealing with a grievance effectively can avoid employment tribunal claims by allowing the issue to be resolved internally.
It can affect the level of compensation
If an employee’s claim is successful, but either the business or the employee has failed to follow the ACAS Code, the level of compensation awarded can be affected: if the business unreasonably fails to follow the Code, the employment tribunal may increase the employee’s compensation by up to 25%; or if the employee unreasonably fails to follow the Code, the employment tribunal may reduce their compensation by up to 25%.
This regime applies to the majority of claims brought in an employment tribunal, including those related to:
- discrimination;
- unfair dismissal; and
- breach of contract.
How should you handle employee grievances?
The grievance should be raised in writing
A grievance can be any concern, problem, or complaint an employee raises with the business.
If an employee grievance cannot be resolved informally, the employee should raise it in writing with a manager. If the grievance concerns his or her line manager, raise the grievance with another manager.
A failure to raise the grievance in writing does not prevent an employee from bringing an employment tribunal claim. However, in these cases, awards for compensation may be less.
The business should hold a meeting and investigate the complaint
Hold a meeting with the employee to enable them to explain their grievance and to suggest how they think it should be resolved.
If the matter needs further investigation, adjourn the meeting and resume it after the investigation has taken place.
At the conclusion of the meeting, the business should communicate its decision promptly in writing, including details of any action it intends to take to resolve the grievance.
The employee can bring a companion
Employees have the legal right to bring a companion (a fellow worker or a trade union representative) to a grievance meeting.
However, it would be unreasonable for an employee to bring someone whose presence would prejudice the meeting.
The employee has a right to appeal
When communicating the decision, the business should inform the employee that they have a right of appeal.
If the employee is unsatisfied with the outcome, they should make an appeal in writing specifying the grounds of appeal.
If the employee brings a tribunal claim without first going through the appeal process, they may receive a reduced compensation award.
A manager who has not previously been involved in the matter should deal with any appeal where possible.
Ensure you inform the employee in advance of the time and place of any appeal hearing and that they may bring a companion with them.
The business should communicate its decision promptly in writing.
Handling employee grievances during a disciplinary procedure
Employees often submit grievances during disciplinary procedures regarding either the procedure itself or the circumstances leading up to the initiation of that procedure. The business must decide whether to suspend the disciplinary procedure to investigate the grievance fully or deal with them concurrently if the issues are related.
Practical steps businesses can take to improve their grievance procedures
Involve employees or their representatives in developing workplace procedures. Ensure those procedures are transparent and accessible to employees.
Train managers:
- how to handle employee grievances effectively;
- when to involve HR;
- how to spot potential legal claims.
Encourage managers to resolve issues quickly and informally before they get to a formal grievance stage.
Allow employees to put their side of the story at a meeting before undertaking any necessary investigation and again before making a decision.
Keep written records, including minutes of meetings
Communicate decisions effectively and promptly, setting out reasons.
Call employment lawyer Karen Cole today for more information.
Note: This is not legal advice; it provides information of general interest about current legal issues.