The CIPD has carried out a survey on new rules
introduced in 2004 which were compulsory and were designed to cut
down on the number of cases reaching employment tribunals. The
survey has found that employers think the new rules have increased
the number of cases.
It found that 18% of organisations think the
rules led to an increase in formal disciplinary cases, while 28%
said it led to a jump in the number of grievance cases. Only 1% of
employers thought there was a decrease in the number of
grievances.
The results back up the experience of
employers in the field, said Robyn McIlroy an employment law
specialist at Pinsent Masons, the law firm behind OUT-LAW.COM. "We
get calls on this every week," she said. "The problem is not so
much on formal disciplinary cases but on grievances because of the
way that employment tribunals have interpreted what counts as a
grievance."
"At the moment if something is in writing and
is a complaint then it could constitute a grievance and the
employer has to do something about it under these rules," said
McIlroy. "If they don't they have failed in their duty under these
regulations."
This has led to a jump in the number of grievances being dealt with
formally, which many believe was not the intention of the
regulations. They were introduced to ensure that all employers used
some kind of formal process for serious complaints and to cut down
on those that reached tribunals. That could be because it is far
more difficult under the rules to resolve conflict informally than
it was before.
"The statutory dispute resolution procedures
have led to a formalisation in how conflict is managed because
employers are afraid of falling foul of the law. But an early
intervention and informal resolution by managers is usually much
more effective," said Ben Willmott, the author of the report and
employee relations advisor with the CIPD.
"Workplace disputes also generate very
significant hidden costs through their negative impact on employee
morale and motivation, absence levels, staff retention and employer
brand," said Willmott. "Employers must provide the relevant
training for line manager and invest in mediation if they are
serious about reducing the damage caused by conflict at work."
The Department of Trade and Industry, which
introduced the new rules in 2004, will review them shortly. "I
think this is a recognition that at grass roots level this has not
worked in the way it was intended to," said McIlroy.
"The DTI should consider going back to the
drawing board when they review the statutory procedures later this
year," said Willmott. "They have failed to reduce the burden on the
employment tribunal system, adding to the complexity of tribunal
hearings, as well as creating additional problems for employers by
making managing conflict at work more bureaucratic."
