Disciplinary procedures – pitfalls by employers

Posted on 27 Jan 2012 in Legal Updates

A recent case had reminded employers that they should act reasonably both when initiating and conducting disciplinary procedures.

ACAS provides a code which applies to disciplinary situations and employers should not ignore it in developing and conducting their own disciplinary procedures.

Common errors that employers make in conducting disciplinary procedures include not giving the employee involved adequate notice, not conducting a full investigation into the alleged wrongdoing, only collating one-sided evidence and not communicating their procedure properly to employees. These errors are conducive to employers acting unfairly and unreasonably and subsequently the employer is vulnerable to claims of unfair dismissal.

Employers should seek to adopt a clear disciplinary policy and procedure in accordance with the ACAS code so that both employees and the employer alike have defined rules on conduct and capability. Such rules should seek to cover time-keeping, absence, use of organisation facilities and policies regarding discrimination and bullying. Such a policy and procedure should be known and understood by all employees to enable the employer to be able to act fairly when dealing with such situations.

If an employee should bring a successful claim for unfair dismissal or a number of other claims arising out of dismissal or disciplinary action, the level of compensation awarded to the employee can be increased by up to 25% for the employer’s failure to follow the ACAS code.

Employers are therefore best advised to adopt a disciplinary procedure applicable to their business and seek legal advice before dismissing an employee or taking action short of dismissal.

For further advice on drafting or implementing a disciplinary procedure please contact Kim Klahn 01789 206154 or kim.klahn@lodders.co.uk.