Introduction to Employment Disputes

Employment disputes can arise in any workplace, regardless of size or industry. As an employer, dealing with disputes fairly and legally is essential to maintaining a productive work environment and avoiding costly tribunal claims. These disagreements can stem from various issues, including contract terms, workplace conduct, pay disputes or termination procedures.

At Davenport Solicitors, we provide expert legal guidance to help businesses manage and resolve disputes efficiently, ensuring compliance with UK employment laws. Our team understands that each dispute is unique and requires careful handling to protect your business interests while treating employees fairly.

Common Types of Employment Disputes

Unfair Dismissal

Unfair dismissal occurs when an employee is dismissed without a valid reason or proper procedures. To defend against claims, employers should document issues thoroughly, follow fair disciplinary processes, provide warnings where needed, consider alternatives to dismissal, and ensure dismissals align with legally acceptable reasons.

Wrongful Dismissal

Wrongful dismissal relates to breaches of contract during termination, such as failing to provide contractual notice periods or not following agreed procedures. Employers should review contracts carefully before termination and fulfil all contractual obligations.

Discrimination Claims

Under the Equality Act 2010, employers must ensure that no employee faces discrimination based on protected characteristics. Types include direct discrimination, indirect discrimination, harassment, and victimisation. Clear equality policies and staff training are essential preventative measures. Know more

Harassment and Bullying Complaints

Employers must address harassment and bullying claims promptly with clear policies, accessible reporting channels, thorough investigations, appropriate disciplinary action, and support for affected employees. A zero-tolerance workplace culture is vital.

Breach of Employment Contract

Employment contracts define mutual obligations. Common employer breaches include changing terms without an agreement, failing to pay agreed amounts, not providing benefits, and imposing unreasonable restraints. Regular contract reviews help maintain compliance.

Wage and Hour Disputes

These disputes involve pay, overtime, or deduction issues. Key areas include minimum wage compliance, unpaid work outside contracted hours, holiday pay, commission entitlements, and unlawful deductions. Good record-keeping and clear policies are preventative measures.

Redundancy and Restructuring Disputes

Redundancies require establishing genuine situations, using fair selection criteria, proper consultation, considering alternative employment, and accurately calculating payments. Improper procedures often result in unfair dismissal claims. Learn more about it

Whistleblowing Complaints

Employees reporting workplace wrongdoing have legal protection. Protected disclosures involve criminal offences, legal breaches, safety risks, environmental damage, miscarriages of justice, or cover-ups. Clear policies should encourage internal reporting first.

Disciplinary and Grievance Procedures

Effective procedures include accessible written policies, prompt investigations, appropriate formality, accompaniment rights at meetings, clear communication, and appeal options. Explore more

TUPE Disputes

Business transfers require protecting employee terms and conditions. Key obligations include consulting with affected staff, preserving employment terms, providing liability information to new employers, protecting against transfer-related dismissals, and maintaining union arrangements. Learn more

UK Employment Law Regulations (2025 Update)

Employment laws in the UK are continuously evolving. In 2025, new regulations focus on:

Strengthening employee rights in redundancy situations:

1.   Extended consultation periods for larger workforces
2.   Additional protections for pregnant employees and those on family-related leave
3.   Enhanced requirements for documenting selection criteria

Enhanced protection against workplace discrimination:

1.   Broader definitions of protected characteristics
2.   Stricter penalties for employers found guilty of discrimination
3.   New reporting requirements for larger employers

Stricter rules for fair dismissal procedures:

1.   More rigorous requirements for performance management documentation
2.   Additional steps required before dismissal can be considered fair

Updates to flexible working regulations:

1.   Right to request flexible working from day one of employment
2.   Shorter timeframes for employer responses
3.   Limited grounds for refusing flexible working requests
4.   Right to appeal refusals

Employers must stay updated with these legislative changes to ensure compliance and reduce the risk of disputes.

Employer Responsibilities in Employment Disputes

Employers must:

Follow fair procedures when dealing with disputes:

1.   Adhere to company policies and procedures
2.   Act consistently across similar cases
3.   Document all steps taken during dispute resolution
4.   Provide reasonable timeframes for employee responses

Keep records of disciplinary actions and grievances:

1.   Document all meetings and conversations
2.   Maintain records of warnings and other actions
3.   Store evidence securely and in compliance with data protection laws
4.   Retain records for appropriate periods

Maintain clear policies on workplace behaviour and complaints:

1.   Regularly update employment policies
2.   Ensure policies are accessible to all employees
3.   Train managers on policy implementation
4.   Review policies annually to ensure legal compliance

Provide employees with contracts that outline their rights:

1.   Issue contracts promptly when employment begins
2.   Include all statutory entitlements
3.   Clearly state terms and conditions
4.   Update contracts when circumstances change

Steps to Handle Employment Disputes Effectively

Recognising Early Warning Signs

Employers should identify potential disputes before they escalate. Warning signs include:

1.   Formal or informal complaints about treatment or conditions
2.   Increased absenteeism or sick leave
3.   Declining performance or engagement
4.   Workplace tension or conflict between staff
5.   Multiple grievances about similar issues
6.   High staff turnover in particular departments

Early identification allows for prompt intervention before positions become entrenched.

Internal Resolution Strategies

Handling disputes internally through HR interventions can prevent escalation. Effective approaches include:

1.   Informal discussions to understand concerns
2.   Structured grievance procedures
3.   Performance improvement plans for capability issues
4.   Clear communication of expectations
5.   Training and development to address skills gaps
6.   Regular feedback and progress reviews

Open communication and a fair grievance process are key to resolving issues before they become formal disputes.

Conducting Fair Investigations

When an issue arises, employers must conduct impartial investigations, gathering all relevant evidence before making decisions. A proper investigation includes:

1.   Appointing an impartial investigator
2.   Interviewing all relevant parties and witnesses
3.   Collecting documentary evidence
4.   Maintaining confidentiality
5.   Taking detailed notes and statements
6.   Preparing a balanced investigation report
7.   Making findings based on evidence, not assumptions

Thorough investigations demonstrate fairness and help defend employment decisions if challenged.

Mediation and Alternative Dispute Resolution (ADR)

Mediation is an effective way to resolve disputes without legal proceedings. Employers should consider ADR before taking their disputes to a tribunal.

Benefits of mediation include:

1.   Preserving workplace relationships
2.   Confidential process
3.   Lower costs than tribunal proceedings
4.   Quicker resolution
5.   More flexible outcomes
6.   Higher satisfaction with results

External mediators often help parties find common ground when internal processes fail.

Legal Representation and Tribunal Claims

Professional legal representation is crucial to defend the employer’s position if a dispute reaches an employment tribunal.

Preparing for tribunal proceedings involves:

1.   Gathering all relevant documentation
2.   Preparing witness statements
3.   Responding to claims within strict timeframes
4.   Considering settlement options
5.   Understanding potential compensation risks
6.   Preparing managers and witnesses to give evidence

Early legal advice can significantly improve outcomes and may identify settlement opportunities before costs escalate.

How to Respond to Employment Tribunal Claims

When facing a tribunal claim, employers should:

Review the claim thoroughly:

1.   Understand the specific allegations
2.   Identify the legal basis of the claim
3.   Check time limits and jurisdictional issues
4.   Assess the strength of the employee’s case

Seek legal advice immediately:

1.   Consult employment law specialists
2.   Understand potential liabilities
3.   Develop a defence strategy
4.   Consider commercial and reputational impacts

Gather all relevant documents and evidence:

1.   Employment contracts and handbooks
2.   Disciplinary and grievance records
3.   Performance reviews and warnings
4.   Correspondence with the claimant
5.   Witness statements

Respond within the deadline set by the tribunal:

1.   File the ET3 form within 28 days
2.   Include a detailed response to each allegation
3.   Attach relevant supporting documents
4.   Raise any jurisdictional challenges

Consider settlement negotiations where appropriate:

1.   Assess commercial benefits of settlement
2.   Understand tax implications of settlements
3.   Document settlement agreements properly

Learn more about Employment Tribunal Representation

Best Practices to Prevent Employment Disputes

Proactive measures can significantly reduce the risk of employment disputes:

Maintain clear workplace policies:

1.   Regular policy reviews and updates
2.   Accessible employee handbook
3.   Clear disciplinary and grievance procedures
4.   Comprehensive equality and diversity policies
5.   Well-defined performance management processes

Provide regular employee training:

1.   Management training on handling disputes
2.   Equality and diversity awareness
3.   Bullying and harassment prevention
4.   Performance management skills
5.   Employment law updates for HR staff

Ensure fair and transparent HR processes:

1.   Consistent application of policies
2.   Clear communication of decisions
3.   Documentation of all employment actions
4.   Regular performance reviews
5.   Open-door policies for raising concerns

Seek legal advice before making major employment decisions:

1.   Complex disciplinary matters
2.   Large-scale redundancy programmes
3.   Business transfers and TUPE situations
4.   Changes to terms and conditions
5.   Settlement agreements

Explore our blog for Employment Disputes

How Davenport Solicitors Can Help

Davenport Solicitors offers expert legal support to employers facing employment disputes. Our services include:

Employment contract reviews:

1.   Identifying contractual weaknesses
2.   Updating terms to reflect current law
3.   Drafting enforceable restrictive covenants
4.   Creating bespoke contracts for different roles
5.   Revising handbooks and policies

Legal advice on disciplinary actions:

1.   Guidance on fair procedures
2.   Support throughout the disciplinary process
3.   Review of evidence and documentation
4.   Advice on appropriate sanctions
5.   Reducing unfair dismissal risks

Representation in employment tribunals:

1.   Complete case management
2.   Drafting robust defences
3.   Witness preparation
4.   Advocacy at hearings
5.   Settlement negotiations

Mediation and dispute resolution:

1.   Qualified workplace mediators
2.   Alternative dispute resolution options
3.   Settlement agreement drafting
4.   Protected conversations
5.   ACAS early conciliation support from workplace solicitors

Guidance on redundancy and restructuring:

1.   Planning consultation processes
2.   Creating fair selection criteria
3.   Advising on collective consultation
4.   Minimising legal risks
5.   Supporting managers through the process

Learn more about Redundancy and Restructuring advice

How We Can Help

Our experience spans a wide range of businesses across various sectors. For expert advice on employment disputes for employers, contact our employment law experts today.

FAQs

1. What should I do if an employee files a grievance?
   Conduct a fair investigation, follow your grievance policy, and document all actions. Acknowledge the grievance promptly, appoint an appropriate investigator, hold a grievance meeting, and provide a written outcome with the right to appeal. 
2. How long do employees have to file an unfair dismissal claim?
   Employees usually have three months from the dismissal date to begin ACAS early conciliation, which must be completed before a tribunal claim can be submitted. The early conciliation period extends the time limit. 
3. Can I dismiss an employee without notice?
   Only in cases of gross misconduct. Otherwise, statutory or contractual notice periods must be followed. Even with gross misconduct, a fair disciplinary process must be followed before dismissal. 
4. How can I reduce the risk of discrimination claims?
   Implement clear anti-discrimination policies and provide staff training. Ensure fair recruitment and promotion processes, conduct equality impact assessments for significant decisions, and address complaints promptly. 
5. Do I need a lawyer for an employment tribunal?
   While not mandatory, legal representation significantly improves your chances of a positive outcome. Employment law is complex, and procedural errors can be costly, making professional representation a worthwhile investment. 
6. What records should I keep to defend against employment claims?
   Keep detailed records of all employment decisions, including performance reviews, disciplinary actions, attendance issues, and any reasonable adjustments. Document all meetings and keep copies of correspondence. 
7. How should I handle an employee on long-term sick leave?
   Maintain regular contact, obtain medical evidence, consider reasonable adjustments, and follow a fair capability procedure if necessary. Take care not to discriminate against employees with disabilities. 
8. What constitutes constructive dismissal?
   Constructive dismissal occurs when an employee resigns due to a fundamental breach of contract by the employer. Examples include changing terms without agreement, bullying, or failing to provide a safe working environment. 

Learn About:

Redundancy advice for employers

How to handle a discrimination claim as an employer

Employment Law Audit

Employment Tribunal Representation