Empire HR is issuing this timely advice in response to the latest statistics from the Employment Tribunals Service, which reveal a 29% increase in unfair dismissal claims this year. This is obviously worrying news for businesses, which often have to find substantial sums of money to pay their disgruntled ex employees.
All employers should examine their disciplinary policies and working practices to ensure that the risk of a claim is minimised. In the current economic climate, the effects of a successful claim could be disastrous. It is also worth bearing in mind that it is not just the actual compensation that costs the business money; it is also the time and resources spent on defending the claim, which can severely affect a business.
With the maximum amount of compensation for a basic claim currently an astronomical £66,200, and discrimination claims being unlimited, it is essential that business owners and managers avoid the common pitfalls which often result in a claim.
Empire HR has the following top ten tips on avoiding a claim:
1. Have a clear, up to date disciplinary procedure.
This is essential. With no disciplinary procedure in place there is a strong chance that employees are not being treated fairly and consistently. The procedure will provide clear guidance to Managers conducting the disciplinary meetings. In addition, failing to use the proper procedure in accordance with the ACAS Code of Practice exposes the business to an uplift in the compensation if they lose a tribunal case.
2. Ensure that Managers know how to implement the disciplinary procedure.
All managers with responsibility for managing others should be trained in using the disciplinary procedure. Unfortunately, managers often do not realise how important it is to follow the procedure with the result that they compromise the fairness of the disciplinary sanction – ultimately risking a claim.
3. Communicate the standards expected, what types of conduct are/ are not unacceptable, and the workplace rules to employees.
It is essential to ensure that all employees are informed of workplace rules as soon as possible and that they always have easy access to any updates. A person should not be disciplined for breaking the rules if they didn’t know about the rules in the first place.
4. Give the employee a fair hearing or a chance to explain.
Employees should always be given an opportunity to be accompanied either by a work colleague or a trade union representative at disciplinary hearings, and be given the chance to explain any mitigating circumstances. The hearing must be as fair and unbiased as possible. After all, it is better to hear their side of the story at this stage than during a tribunal hearing!
5.Keep a record of all notices and formal warnings.
It is important to take detailed and comprehensive minutes of all meetings. You cannot rely on warnings if there is no evidence of them! Also the outcome of the meetings must be given to the employee in writing.
6. Allow an employee the chance to improve.
When going through a performance management process, reasonable objectives should be set within a fair timescale giving the employee the opportunity to meet the required standard.
7. Make the consequences of poor performance and/or misconduct clear to employees.
It is important that the outcome of every meeting is given to the employee in writing, stating clearly what could happen should the required improvement not occur.
8. Investigate in Full!
There should always be a full investigation into every allegation. This becomes critical in circumstances which may lead to dismissal. A thorough investigation will often prevent the need for a disciplinary hearing, and will ensure that you are aware of the full facts before embarking on the disciplinary process.
9. Consider all the circumstances.
All circumstances must be considered before deciding on the outcome of disciplinary action. For example, was the employee provoked or ill? A tribunal will want to know such details when determining if an employer has acted fairly and reasonably.
10. Be consistent.
It is important to ensure that every situation is dealt with in a consistent manner. If an employee can demonstrate that another person has not received the same treatment in the same circumstances, it can seriously weaken a case. It is also good practice since inconsistency can often lead to widespread discontent amongst employees.
Empire HR Ltd can assist businesses on all aspects of disciplinary action, from drafting the disciplinary procedure to representation at tribunal.
