The Employment Act 2002 introduces new rules about disciplinary procedures and grievance procedures. These new rules have been surrounded by controversy with employers' organisations arguing they are unduly tough and trade unions arguing they are unduly lenient.

The aim of these rules is to clarify minimum standards employers must follow when disciplining employees and dealing with the employees' grievances.

The first advantage to business is that, provided these minimum standards are followed, employees will not be able to succeed in claims for unfair dismissal on the basis of any procedural failing.

The second advantage is employees may be prevented from resigning and bringing constructive unfair dismissal claims if they have not previously attempted to resolve their grievance through the internal grievance procedure.

The disadvantage to business is that if the minimum standards are not followed, any dismissal will be automatically unfair (provided the employee has been employed for one year) and the level of compensation will probably be increased.

The essential components of the minimum standards for disciplinary procedures are that the employer must hold a fair hearing before taking action and must give the employee an opportunity to appeal to a more senior manager.

The key component of the grievance procedure is that there is an initial meeting with the aggrieved employee.

The controversy surrounding these new rules in the Employment Act 2002 has resulted in a delay in their implementation. The current plan is that the new rules will come in to force around October 2004 - although no definite date has yet been fixed.

The most significant change might be that employees could be prevented from bringing constructive unfair dismissal claims unless they have first raised a formal grievance.

At the moment, it is not unusual for employees to resign on the basis of a grievance about which the senior managers and owners of the business have no knowledge. For example, the employee may resign because they feel they are being bullied by one of their colleagues and yet not bring this to the attention of the more senior managers.

The new rules may ensure that employers have the appropriate opportunity to remedy grievances before they result in costly and time-consuming litigation.

For further information and advice, contact Paul Archer or Dawn Gallie at Lemon & Co Solicitors on 01793 527141.