The Government recently published the results of an independent review of employment dispute resolution – the Gibbons review – and launched a consultation aiming to take its recommendations forward. If the Government goes ahead with the recommendations, it will overhaul the system of workplace dispute resolution.

The statutory grievance procedures introduced in October 2004 intended to improve the resolution of workplace disputes and cut the number of employment tribunal claims. And although the procedures brought benefits such as allowing employers to consider employees' grievances before tribunal claims are made, the benefits have largely been outweighed by problems. These include the high administrative burden, the complexity of the rules and penalties for failure to follow them, and the fact that formal processes are now imposed where problems could have been resolved informally. 

Concerns about the system led to the Gibbons review being asked to consider options to simplify and improve employment dispute resolution.  

The review found that existing legislation had failed, recommended a repeal of the current statutory dispute resolution procedures, and suggested it be replaced by a simpler system. Consultation covered:

There is a great deal of support for this type of reform, which means that change is now almost inevitable. 
The standard three step grievance procedure will apply to most employee grievances – unless the modified grievance procedure applies or grievance procedures are excluded:

Step 1: The employee must put the grievance in writing and send it to the employer. Any written communication – including e-mail – from, or on behalf of, an employee which sets out complaints or concerns should be treated as a grievance.

Step 2: The employer must invite the employee to a grievance meeting.
Before the meeting, the employee must tell the employer the basis of the grievance, and the employer must have a reasonable opportunity to consider his response. The employee must take all reasonable steps to attend the meeting. After the meeting, the employer must confirm his decision and the employee's right of appeal in writing. 

Step 3: If the employee wishes to appeal, the employer must invite the employee to an appeal meeting, and confirm his decision in writing. In order to make certain types of tribunal claims, employees must raise a grievance and wait 28 days. Where a grievance has to be lodged, the time limit for making a tribunal claim is usually extended to allow time for informal resolution. Tribunal compensation can be increased or reduced by 10-50%, to reflect the employer or employee's failure to follow the statutory procedure. Pending any reform of the law, care should be taken to follow the correct procedure. Employers should remember: