The Employment Act 2002 has been introduced to support the Governments’ commitment to create highly productive, modern and successful workplaces through fairness and partnership at work. It aims to build constructive employment relations and avoid the need for litigation through better communications. The core element of the Act is a mandatory grievance procedure that, if the employee does not invoke it, may prevent him or her lodging a claim in the Employment Tribunal.

Dispute Resolution

For the first time, employers will be required to have statutory procedures for dealing with employee grievances. More disputes between employers and employees are ending up in litigation. Litigation as a first step is not beneficial to either party; it is costly and can often weaken employment relations. The Government believes many of these disagreements can be resolved in the workplace if the employer and employee work together.

The Act requires all employers to have minimum procedures and

provide incentives to employers and employees to use them. These procedures will form part of the contract of employment.

Grievance Procedure

There are two procedures for dealing with a grievance, a Standard Procedure and a shorter Modified Procedure. (Please see overleaf.)

Consequences of failure to comply

If the employee does not invoke the mandatory grievance procedure, he or she is prevented from bringing the normal employment claims in a tribunal, including discrimination claims and unfair dismissal. There is a minimum 28 day period after lodging the grievance before an employee can take his claim to an employment tribunal.

If the employee fails to comply then his or her compensation is reduced. In exceptional circumstances, the tribunal is entitled to refuse to reduce the award and can increase the award when the employer fails to comply.

Standard Procedure Stage 1 The employee must set out the grievance in writing and send a statement to the employer. Stage 2 The employer and employee must meet to discuss the grievance before any action is taken. After the meeting the employer must inform the employee of its decision and notify the employee of the right to appeal. Stage 3 If the employee wishes to appeal, they must inform their employer. In such a case the employer must invite the employee to attend a further meeting that the employee must attend. After this meeting the employer must inform the employee of its decision. If the employee is still not satisfied, it will then go to tribunal.