Small businesses should be ready for new legislation regarding dismissal, discipline and grievance procedures, which become law on 1st October 2004.
From that date, bosses could face an employment tribunal if they dismiss an employee for valid reasons but fail to follow the new three-step procedure laid out in the new legislation.
This means that not only dismissals on grounds of capability or conduct will be affected, but also dismissals for reasons of redundancy, retirement where an employee could claim unfair dismissal, ill-health, and where a dismissal consists of the non-renewal of a fixed-term contract.
Under the amendments to the law, the statutory procedure for dismissing an employee has three main steps:

1. Write to the employee notifying them of what they are alleged to have done wrong – in terms of performance or conduct; set out the basis for the allegations; and invite them to a meeting to discuss the matter;

2. Inform the employee of the grounds for making the allegations and hold a meeting to discuss them – at which the employee has the right to be accompanied. Notify the employee of the decision and the right to appeal;

3. Hold an appeal meeting (if the employee wishes to appeal) at which the employee has the right to be accompanied – and inform the employee of the final decision.

However, the above is a minimum requirement and employers and employees should start taking to each other long before any disciplinary process reaches even the likelihood of dismissal, or action short of dismissal.
While some organisations will already have suitable disciplinary procedures in place, from 1st October, all employers, regardless of size, will be required to issue a written document that sets out their rules and these new minimum procedures.

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This web-site was last updated on 13/06/2008

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