Letter of resignation could amount to a formal grievance   Recent cases have shown that employment tribunals are willing to widely interpret what amounts to a grievance letter.

Statutory Redundancy   Payments Increased

Stress Warning for Employers   Duty of care for psychiatric injury

Letter of resignation could amount to a formal grievance

Following the introduction of the Statutory Grievance Procedures in October 2004, the issue of what amounts to a grievance letter has been thrown into the lime light recently.
An employer who receives a grievance letter must:

• invite the employee to a meeting to discuss the grievance
• hold a meeting
• confirm its decision in writing
• give the employee the right to appeal against the decision

An employee who decides to bypass the company’s internal grievance procedure and head straight for the employment tribunal may find their claim barred.  If the employer fails to deal with the grievance and the employee subsequently takes a claim to tribunal and wins, the employee will be entitled to an increase in compensation of between 10-50%.

Recent cases have shown that employment tribunals are willing to widely interpret what amounts to a grievance letter.

The legislation simply states that an employee must set out their grievance in writing and send it to their employer.  It has been left to the tribunals to decide what amounts to a grievance letter based on the facts of the case.

The latest case on this issue is that of Galaxy Showers Limited v Wilson (2005) UK EAT 0525 05. This is the first time that the Employment Appeal Tribunal ("EAT") has had to decide what can amount to a grievance letter.  The case involved an employee who wrote to his employer setting out his complaints and indicating that unless they were resolved he would resign. The employer considered this to be a resignation letter, failed to treat it as a formal grievance or take any action in respect of it.  The employee subsequently resigned and claimed constructive dismissal. The EAT concluded that the employee's letter amounted to a grievance letter.
Employers beware!

An employee wouldn’t have to categorically tell you they were raising a grievance to invoke the statutory procedure.  A resignation letter highlighting problems or issues could be considered to be a formal grievance letter and should be treated as such.

For more information please contact us on 01473 890037.

Statutory Redundancy

With effect from 1 February 2006 the limit on a weeks’ pay, which is used for calculating redundancy payments, and the basic award following an unfair dismissal claim has increased.

It rises from £280 per week to £290 per week.

The maximum award a tribunal can make for unfair dismissal also increases from £56,800 to £58,400.

Stress Warning for Employers

According to the Health and Safety Executive around half a million people in the United Kingdom experience work related stress at a level that is making them ill. Estimates from this research suggest that work related stress, depression or anxiety account for an estimated 13 million lost working days per year in Britain.

Given the cost to industry in lost days and increasing reports of successful claims for stress resulting in large payouts, it is perhaps not surprising that workplace stress is becoming a hot topic for businesses. Employers have a duty of care to their employees to ensure they do not suffer injuries at work and this does include psychiatric injury.

However, an employer would only be considered liable for psychiatric injuries where it was reasonably foreseeable that harm could be caused.

A recent case, Hone v Six Continents Retail Ltd, has reduced the burden on employees in what is considered reasonably foreseeable. Mr Hone, a Licensed House Manager, had been working between 89 and 92 hours per week over a two month period in 2000. During this time, two colleagues had left and had not been replaced imposing additional duties on him. He had refused to sign an opt-out agreement from the Working Time Regulations and at a meeting with his manager he complained that he was working excessively long hours and feeling tired.

Despite the manager appearing to accept that Mr Hone required additional help, no action was taken. Mr Hone collapsed a few weeks later. The court held that Six Continents Retail Ltd should have foreseen the injury despite the fact that:

• Mr Hone had no previous history of stress, depression or anxiety
• He had not taken any time off work through illness prior to his collapse
• He had not informed anyone that his health was suffering

The lesson employers should learn from this case is not to bury their heads in the sand. Prevention is better than cure for both employee and employer:

• Where staff are likely to work more than 48 hours a week, ensure they have signed the opt-out agreement under the Working Time Directive.
• Regularly review information in relation to hours worked by staff for unusual patterns or excesses and talk to them where necessary to understand what’s happening.
• Carry out a risk assessment or stress audit to reduce the likelihood of problems arising. Ensure any meetings at which you discuss hours or workload are properly documented.
• Consider putting in place a documented policy for dealing with stress and ensure all of your managers and employees are aware of it. Picasso HR can help you design and implement a stress policy, including carrying out a stress audit.
• Make staff aware of any occupational health facilities that are available, along with any counselling help lines.
• Ensure you take any complaints about workload or health problems seriously and investigate fully.

All Picasso HR customers have access to a helpline which not only provides employment law advice, but can also provide practical management solutions to problems such as these.

The information in this newsletter is of a general nature and is not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action.

For further information, advice or assistance on any of the matters raised in this newsletter please contact Picasso HR on 01473 890037.

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