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."
