BOSSES have been warned about new rules affecting the sacking of workers.

New regulations now in force mean bosses must follow a strict 13-step procedure, or face the law courts.

Those who do not tick off every step on the way to dismissal will automatically be judged to have sacked that person unfairly, and could have to pay out as much as £50,000 compensation.

Organisations will only be exempt if large numbers of staff are made redundant or if a business closes unexpectedly.

The Department of Trade and Industry believes the regulations will cut tribunal cases by a third, but Angela Smith, regional organiser for the Federation of Small Businesses in Worcestershire, Herefordshire and Shropshire, thinks differently.

"It could have a disastrous effect on small businesses," she said.

"We are concerned that many small businesses are not aware of what the new regulations really mean.

"These regulations have had nothing like the same kind of promotion as, say, the disability laws, and as a result, will leave them open to more cases and also attracting a bad reputation.

Animosity

"Also, we think it will breed animosity and contempt in the workplace - whereas before an employer could take someone to one side and talk to them, it now has to be done in writing.

"This will make the situation seem worse than it actually is in a lot of cases."

Christopher Harvey, head of policy and representation at the Chamber of Commerce, Herefordshire and Worcestershire, admitted the Government was being "over-optimistic" in aiming to reduce claims.

"An awful lot of businesses will simply not be aware of the procedures and that this could lead to complications," he said.

"The Government's stated aim is to reduce the number of cases that go to tribunal. I think that this may be over optimistic and I don't necessarily see this producing that kind of result.

"The Government wants to move us away from that but many people still see the law as a quick way of making money out of a company or organisation."

The procedure...

Set down in writing arguments for dismissal.

Hand copy of statement to employee.

Give employee time to consider response.

Hold a meeting with employee.

Conduct meeting in a way that enables that person to explain their position.

After meeting, tell employee the decision.

Offer employee the chance to appeal.

Invite employee to further meeting to discuss appeal.

Employer must invite senior manager to the appeal meeting.

Communicate final decision to employee.

Timing of all meetings must be reasonable.

Location of meetings must be reasonable.

The employer must not delay unreasonably over any of these steps.

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