Employment Act 2002: statutory internal procedures

This page summarises changes made by the Employment Act 2002 with effect from 1st October 2004. Broadly:

unless you were not employed by the relevant person, you may have to take at least the first step in any internal grievance procedure before you can complain to a tribunal; and
if you (or the employer) don't follow through the grievance procedure, this may be reflected in the amount of any compensation ultimately awarded.

The 2002 Act brought in statutory "dismissal and disciplinary procedures" and "grievance procedures". The idea is to encourage more resolution of employment disputes internally without recourse to a tribunal.

Where a grievance procedure applies, an employee will normally not be able to present a DDA complaint to an employment tribunal unless he has complied with the first step of the procedure (s.32(2)(6)). The first step is that the employee must set out the grievance in writing and send the statement or a copy of it to the employer. The employee will not be able to lodge a claim for a further 28 days after the statement is sent (s.32(3)(6)). There are also rules on the time within which the written statement of grievance should be sent (s.32(4)(5)(6)).

Furthermore section 31 provides for compensation awards to be adjusted upwards or downwards by 10-50% if the employee or employer fails to complete the applicable procedure.

The time limits associated with employment tribunal applications are extended in certain circumstances to allow extra time for the statutory procedures to be completed.

Subject to exceptions, the grievance procedure applies to "any grievance about action by the employer" that could form the basis of a DDA complaint (reg 6(1) of SI 2004 No 752 - see also definition of 'grievance' in reg 2). "Action" includes an omission. In some DDA cases it is not clear whether there will have been "action by the employer" - eg if there has been harassment by a work colleague.

The full text of the Act is available. Regulations SI 2004 No 752 have been passed to supplement the statute.

Proposed change: The government has published a Bill to repeal the current statutory dispute resolution procedures.

Further information

Employment Act 2002 pages on DTI website.

Employment: complaints and going to court"

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Employment Act 2002: statutory internal procedures

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