COUNCIL
Origin: Human Resources Committee
The Employment Act 2002 included provision for new
procedures for resolving disputes in the workplace. The government has now issued Regulations to implement these
procedures. They became effective from
1 October 2004. One aspect of the new
rules is the requirement for all employers to follow minimum statutory
dismissal and disciplinary procedures.
These procedures apply to all types of dismissals, including the non
renewal of fixed term contracts.
Failure to follow these procedures would be likely to render any
dismissal automatically unfair. The
upper limit for compensation for an unfair dismissal claim is currently
£55,000.
The procedure requires a minimum of three steps as
follows:
This procedure must be followed each time a contract
is considered for renewal.
In a small number of cases, when continuation funding
is uncertain, fixed term contracts are extended on a month by month basis. In these circumstances compliance with the
new Regulations will be impossible due to time constraints.
The difficulties of working within this shorter
timescale are also compounded by the new arrangements for work permit holders,
many of whom are employed on fixed term contracts. These staff now have to apply to the Home Office for further
leave to remain in the country each time their employment is extended. However,
they cannot make an application for leave to remain until the extension to
their work permit has been received back from Workpermits UK. Again, this cannot all be achieved within
the very tight timescales that are currently in operation.
The significant distress caused for employees in this
situation should also be a cause for concern.
The Human
Resources Committee therefore recommends that the minimum duration of any
extension to a fixed term, other than to conclude a project and bring an
appointment to an end, should henceforth be three months.
Date:
November 2004