AS an employer, unless you have managed to avoid employment disputes or are lucky enough to be long retired in some exotic sun-drenched paradise, you will be aware that in October 2004 the Government introduced a statutory dismissal procedure.

This sets out simple steps which must be taken by an employer when contemplating dismissal, while there is also a procedure which has to be followed when dealing with employees’ grievances.

To encourage employers to follow this procedure, a carrot-and-stick approach is taken.

If an employer dismisses an employee without following the statutory dismissal procedure, then there will be an automatic finding of unfair dismissal, a basic award of at least four weeks’ wages and any compensation that is awarded being increased by up to 50 per cent.

On the other side of the coin, following the procedure correctly improves the employer’s prospects of defending a claim.

The procedure not only applies to misconduct dismissals but most situations where an employee is at risk of dismissal, for example where redundancy or ill health situations are concerned.

It also can apply to situations where the employer is looking to change an employee’s contract in a fundamental way.

As far as the dismissal procedure is concerned there are three basic steps which must be followed when dismissal is contemplated: firstly, the employer must write to the member of staff explaining why they are contemplating dismissal; secondly, they must hold a meeting to discuss the issue; and thirdly, offer an appeal.

The purpose of introducing this law was to create a minimum standard procedure to deal with dismissing employees. The aim was to encourage employers to try and resolve any difficulties by requiring both parties to put their respective concerns in writing and to discuss them at a formal meeting.

The theory was that this would encourage resolution of the problems and reduce the number of claims made to an employment tribunal.

However, despite being introduced more than three years ago, many employers remain unaware of these procedures or have difficulty following them.

Questions such as what must be included in the initial dismissal letter and whether or not decisions have to be notified in writing have been causing problems for employers and employees alike.

In fact, the issues these statutory procedures have raised could result in the law being changed next year.

In the meantime, the best advice when dealing with dismissals or grievances is to seek professional legal advice early.

■ Paul Hargreaves is an employment law specialist with BHP Law. He can be contacted on 0191-221-0898.