The Employment Act (Dispute Resolution) Regulations 2004 sound simple but are, in fact, complex and no employer can afford to be complacent as the potential consequences of noncompliance are significant.

The new statutory procedures implement "the standard procedure". This is a threestep procedure that requires a written statement of grounds for action and an invitation to a meeting; a meeting - which must take place after the employee has been informed of the evidence; and an appeal.

Standard procedure applies

The standard procedure applies to nearly all dismissals on grounds of capability, conduct, attendance and redundancy including dis-missals on the expiry of fixed-term contracts;

dismissals following long term sickness absence; redundancies affecting fewer than 20 employees; and some retirements.

The procedures also apply to action short of dismissal taken for reasons of an employee's conduct or capability; for example a demotion or suspension without pay as a disciplinary sanction. Bizarrely the procedure does not apply to warnings or paid suspensions.

There is a modified two-step dismissal procedure which will scarcely ever be relevant.

The standard procedure is a three-step process that requires a written statement of grievance; a meeting; and an appeal.

This procedure applies where the employee is aggrieved about action the employer has taken, or is contemplating taking, which could form the basis of a complaint to the employment tribunal. The procedure could apply following the issue of a warning if the employee claims that the employer's warning was, for example, discriminatory or in breach of contract.

Employees will generally not be able to bring a tribunal claim about a grievance unless they have first raised it with their employer as a grievance.

However, there are some significant exceptions, which mean that this requirement does not provide the certainty for which employers would have hoped.

There is a modified two-step procedure which will only rarely be relevant.

Impact on tribunal proceedings If an employer is found not to have complied with the procedures - and the fault is attributable to him - any dismissal will automatically be unfair; the basic award will be a minimum of four weeks' pay;

and any compensation will be increased between 10% and 50%.

In the case of dismissals, time limits will be extended by three months if a tribunal is satisfied that the employee reasonably believed the statutory procedure to be ongoing at the expiry of the three month time limit, for example because he had lodged an appeal.

In relation to a complaint to which the statutory grievance procedure applies, if an employee has not sent in a grievance and waited at least 28 days (to give the employer a chance to operate the grievance procedure) he cannot bring a tribunal claim unless an exemption applies; for example if the employee believes that he or she would be harassed as a result of following the procedures.

The lodging of a grievance with an employer within the normal tribunal time limit (three months from the issue to which the complaint relates) automatically extends the time limit for lodging a tribunal claim to six months.

An employee who presents a tribunal complaint within the time limit - but without having lodged a grievance - and who has waited 28 days, will be told by the tribunal to do so. If he does so within four months of the issue to which the complaint relates, he will benefit from an extension of time for lodging a tribunal complaint to six months from the date of the issue.

Written statement of employment

There is a new requirement for written statements to contain or refer employees to a reasonably accessible document that contains any disciplinary or dismissal procedure applicable to the employee, such as a staff handbook. This provision applies to all employers regardless of size.

If the employee brings a claim, for example, of unfair dismissal - and also successfully claims that the written statement was incomplete or inaccurate - the employer could be required to pay an additional two or four weeks' pay.

Impact on current procedures An employee does not have to raise an appeal in writing, but simply needs to inform the employer.

Even if an existing procedure requires an appeal to be raised in writing an oral appeal should be accepted.

It is necessary proactively to inform the employee of a right of appeal.

All stages of the procedures must be take place "without unreasonable delay". It would not be advisable, therefore, to insist that any time limits contained within an existing procedure are complied with.

For example, if the procedure currently states that an appeal is to be raised within five working days and the employee submits it in 10, this may still be considered to be "without unreasonable delay" and therefore comply with the requirements of the statutory procedure.

Practical points

Although retirements at normal retiring age, at 65 if none is set, or by mutual agreement, are not covered by the new procedures, it may be difficult in practice to identify whether the retirement is compulsory or voluntary and what is in fact the normal retirement age.

In many cases employees will be able to use the statutory grievance procedure to complain about a warning.

Since most employers' disciplinary procedures provide for an appeal against a warning, there is a risk that an employee could pursue an appeal against such a warning and then in effect secure two further appeal stages by operating the statutory grievance procedure.

Good drafting of the employer's disciplinary procedure should enable an employer to reduce the further appeals to a maximum of one and in some cases none.

It is likely that the number of internal grievances will increase after October 1, 2004 and line managers with responsibility for discipline and grievance issues should receive training on the implications of the statutory procedures.