The world of HR is about to experience a small revolution. Following consultation, the government is scrapping the mandatory “3-step” process known as the statutory dismissal and grievance procedure (SDGP).

It will be replaced on 6th April 2009 with a ‘fair and reasonable’ approach to handling workplace disputes. Based around a new ACAS Code, it will allow employees and employers greater flexibility and to deal with disputes early.

Key changes

• The new Code applies to all formal disciplinary proceedings - the old one only applied to a disciplinary meeting which resulted in an employee's dismissal.
  
• Gone is the concept of the verbal warning - employers are only required to issue a first and then final written warning prior to dismissal, which could make the process more straightforward.
  
• The Code will not apply to redundancies or the termination of fixed-term contracts - you still need to conduct redundancies fairly.
  
• Employers or employees can be penalised by up to 25% of any award if they fail unreasonably to comply with a provision of the code.
  
• It has been very difficult to deal with grievances that arose during a disciplinary process. Now the process may be temporarily suspended to hear a grievance or, if the grievance and discipline are related, the issues may be dealt with concurrently.
  
• Where an employee is persistently unable or unwilling to attend a disciplinary meeting without good cause, the employer should now make a decision on the evidence available.
  
• Both the employer and the employee are to consider using independent third parties, including external mediators, to assist in the resolution of disputes.
  
• Employees and their representatives should be involved in the development of rules and procedures.

Transition
The pre-6th April 2009 regime will generally continue to apply where:

• The employer started disciplinary or dismissal action before 6th April 2009.
  
• Subject to final cut off dates for grievances, if an employee complains now about an action which began before that date even if it continues thereafter.
  As always, if you are unsure it is best to take expert advice to make certain you follow the right procedure.

Practical Implications

• Review your disciplinary procedures
  
• Consider scrapping 'oral' warnings
  
• Consistently follow your procedures reasonably and fairly
  
• Consider offering mediation as part of the written procedure
  
• Consider either training internal mediators or using external mediators