PLANS for a radical overhaul of dispute resolution procedures have been published by employment relations minister Gerry Sutliffe.

From October 2004, employers and employees will be required to follow a minimum three-stage process to ensure that disputes are discussed at work.

The process will require:

the problem to be set out in writing with full details provided to the other party.

both parties to meet to discuss the problem.

an appeal to be arranged if requested.

Use of these procedures is set out in draft regulations laid out in the Employment Act 2002.

They require all employers to have procedures in place by October 2004 to deal with disputes.

After this date, employees will not be able to make claims to employment tribunals about grievances unless they have previously raised a formal grievance at work.

Employers who dismiss staff without using the statutory procedure face an automatic finding of unfair dismissal against them.

Mr Sutcliffe said: "Disputes at work are expensive, stressful and disruptive for both employers and employees alike.

"But early constructive discussion can produce solutions before problems escalate and working relationships break down.

"We want to establish new minimum standards that will help employers and employees resolve disputes before it is too late.

"We are consulting early on these draft regulations to allow businesses plenty of time to adjust to these changes."

He said that most employers already had fair and comprehensive disciplinary and grievance procedures and would not be affected by the proposed regulations. "These measures will help employers without procedures, often smaller businesses, to solve disputes when they arise."