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Why your Disciplinary Policy shouldn't be part of the Employment Contract

20/3/2012

 
Many employers issue Contracts of Employment or Statements of Terms and Conditions that include their Disciplinary Policy and Procedure.  Whilst it's great that they've given consideration to this, it's not so great that they've made it "contractual". 

Up until recently, in these circumstances, the company would be guilty of Breach of Contract, with potentially very serious consequences, if they failed to follow their Disciplinary Procedure.  However, a recent tribunal, which went to appeal and further appeal, has determined that if a company fails to follow a disciplinary procedure that is contractual (ie contained in the contract of employment), they won't be guilty of Breach of Contract - just guilty of failing to follow their own disciplinary procedure.

This is good news as the penalty is potentially less severe but, in an unfair dismissal claim, they could still find themselves having to pay out over £70k!  This could literally put a small company out of business - but a Tribunal wouldn't be interested in that... just the facts of the case before them.

So, yes of course you must have a Disciplinary Policy and Procedure.  But keep it as a separate employment policy - non contractual.  It will still need to be followed during disciplinary proceedings, but you will be free to amend the procedure in line with the needs of your business, just as long as it follows ACAS guidelines as a minimum.

Caution! 
ALWAYS follow your company's procedures - to the letter!  You could be heavily penalised if you don't.

    CV Writer, HR Consultant, Virtual PA

    Author

    Hi, I'm Barbara, owner of The Back Office.
    I've had a portfolio career... Accounts, Office Management, Executive PA, Company Director, HR Manager and Consultant - across a diverse range of companies of all shapes and sizes. 
    Because of my eye for detail and penchant for nit-picking, I was often tasked with due diligence during acquisitions and takeovers, and managed copious amounts of paperwork in extensive corporate and private litigation.
    I also lectured in Business Studies and Secretarial Skills for 10 years on a part time basis for a college in West London where I'd previously studied.
    I've had some amazing and colorful experiences during my career, gained a great skill set and considerable insight... Not much surprises me! 
    These days I enjoy bringing all these skills together to provide comprehensive support to business owners and individuals, who can benefit from my knowledge.
    I love walking, gardening, cooking, reading and travel, and although I'm a totally grounded person, I like to have some fun in the process.
    ​

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