UNIVERSITY OF HONG KONGLIBRARY

Hong Kong CollectionGift from:

Labour Department, H. K.

GRIEVANCE AND

DISCIPLINARY

PROCEDURES

LABOUR DEPARTMENT

HONG KONG

April 1974

PRINTED BY THE GOVERNMENT PRINTERHONG KONG

41969-300K-5/74

CONTENTSPage

Introduction 1

Defining a grievance 1

Grievance procedures in undertakings 1

Employers initiative 1

Form and contents of grievance procedures 2

Making grievance procedures effective 5

Misconduct and dismissal procedures 6

The Labour Department's role 7

Appendix—An example of one procedure 8

FOREWORD

THE ESTABLISHMENT and maintenance of cordial relations withemployees should be the aim of every employer. Fair rates of pay

and good working conditions will favourably influence relations butthey alone will not ensure cordiality. Employees are not machines andtheir reactions as human beings must always be considered and takeninto account. Human relations play an important part in the establish-ment and maintenance of relations between employees and management.

One area to which every employer should give considerable andconstant attention is the method of handling grievances. This is partic-ularly important when dealing with individual grievances. Anotherarea is the procedure used in disciplining employees. If cordiality is tobe maintained together with a high degree of efficiency at the placeof employment, irrespective of its size, fair and speedy methods ofdealing with grievances and appeals arising from disciplinary proceduresmust be provided.

This guide has been prepared to assist employers in establishinggrievance and disciplinary procedures and to suggest improvements inexisting procedures. The establishment and operation of such pro-cedures can be of considerable assistance in reducing the likelihood offriction arising between an employer and his employees and in establish-ing and maintaining cordial relations.

INTRODUCTION

FROM time to time, practically every employee feels that he has,apart from a general claim, grounds for additional benefits or has

been unfairly treated. If speedy, fair, and simple procedures are inoperation to rectify such grievances, morale and efficiency should beimproved. Without such procedures, misunderstandings and frictioncan develop, possibly bringing about a loss of efficiency or a loweringof morale.

DEFINING A GRIEVANCEIT IS difficult to define a grievance in general terms but one

established definition is as follows:

'Complaints affecting one or more individual employees in respectof their wage payments, overtime, leave, transfer, promotion,seniority, work assignment, working conditions, interpretation ofservice agreement, dismissal, and discharges.*

Generally speaking, grievances are those matters presented by em-ployees, either collectively or individually, which directly affect theconditions of employment of one or more employees in the undertakingor which relate to some action taken by the management, apparently inviolation of conditions set out in an existing collective agreement orindividual contract of employment, work rules, and existing laws orregulations of common or established practice. If a grievance, whilebeing investigated, develops into a general claim, it should no longer bedealt with by the machinery for grievance procedure.

GRIEVANCE PROCEDURES IN UNDERTAKINGSIN DIFFERENT parts of the world, grievance procedures have

developed from a variety of sources, including laws and regulations,agreements or joint declarations at national or industrial levels, collectiveagreements, and individual employer's initiative. In Hong Kong, it isgenerally likely that grievance procedures will depend upon the initiativeof individual employers.

EMPLOYER'S INITIATIVEEMPLOYERS WHO appreciate the importance of grievance pro-

cedures, even in the absence of any compelling external factors, will

ensure that some appropriate machinery is set up in their undertakings.Grievance procedures are sometimes set out in formal statements but,generally, they are included in works rules. The procedures shouldalways be included in employee handbooks whenever they are issued.

In Hong Kong, few undertakings have clearly-defined grievanceprocedures. The Labour Relations Service of the Labour Departmentdeals with many cases which would not be brought to it if satisfactoryprocedures existed in undertakings. Even if the Labour RelationsService was ultimately asked to conciliate, the immediate availability offactual information would help to speed up its work.

FORM AND CONTENTS OF GRIEVANCE PROCEDURESIN DETERMINING the actual form and content of a grievance

procedure, several items must be taken into account. The size of theundertaking has considerable bearing. For example, a less compre-hensive procedure may be suitable for a smaller undertaking but wouldprove inadequate for a larger one. An undertaking with several depart-ments may require a more involved procedure.

The structure of management and the quality of middle managementneed to be considered carefully with particular reference to the levelat which decisions are authorized to be made.

The nature of the work force must also be considered. A mainlyunskilled labour force will require a procedure different from that suitablefor a work force largely comprised of skilled, technical, or white-collarpersonnel. The standard of literacy of the employees is also relevantwhen choosing between a simple or complicated procedure and, partic-ularly, when deciding whether grievances sftould be presented in writingor not.

There are considerable differences of opinion among those responsiblefor personnel matters on the degree of formality in grievance procedures.Whatever the arguments are for or against formality, it is essential forthe procedure to be clearly defined and known and understood byemployees.

Procedures should be as simple as circumstances permit. Some simpleformality combined with adequate communication are required so thatemployees know how to express their grievances. The increasing com-

plexity of modern industry can develop a remoteness between topmanagement and employees not only in large undertakings but alsoin medium and smaller undertakings. Some formality is inevitable ifsenior management is to be kept fully aware of employees' grievancesand the reasons for them.

Another important reason for at least a minimum of formality isthat a written record of each individual grievance provides an opportunityto study and subsequently, to remove causes for grievances. A carefulexamination of patterns of grievances may indicate sources of dissatis-faction which require attention. Although it may not be always practi-cable to require grievances to be presented in writing, it is recommendedthat, provided the employees have a reasonable standard of education,written complaints should be introduced at some stage of the procedure.In this way, management is given an opportunity for a detached studyof the grievance. The possibility that one party's version of the facts beingchanged during the course of the proceedings is minimized, and the em-ployee avoids the necessity of repeating his complaint in person at variousstages. Nevertheless, it is recommended that, where there are severalstages in the procedures, the employee should be allowed to present agrievance in person at an early stage.

The most common form of procedure is that of successive reference ofthe grievance to different levels of management. Although there may beconsiderable variation in detail, in broad outline there are great similaritiesamong various systems. For example, it is normal procedure for anemployee with a grievance to complain, first of all, to his immediatesupervisor and, if not satisfied with the result, to seek, subsequently,satisfaction from a higher level of management. Often, this may bethe practice even in the absence of prescribed procedures. However,if the procedures are not prescribed, an employee may be unaware ofhis right or a shy employee may be afraid to go beyond his supervisor.

The following is an example of a commonly-used procedure:

first step: If an employee has a grievance he will, initially, discuss itwith his immediate supervisor.

second step: If the grievance is not satisfactorily settled at the firststep and if the employee so requests, the supervisor will presentthe grievance to the head of the division. The divisional headwill arrange to discuss the grievance with the employee concerned

within five days of the receipt of the grievance. At this stageand subsequent stages of the procedure, the employee concernedmay be accompanied by a colleague of his choosing.

third step: If the grievance is not satisfactorily settled at the secondstep and if the employee so requests, it will be presented by thedivisional head to the departmental manager who will discuss thegrievance with the employee within seven days of receipt of thegrievance.

fourth step: If the grievance is not satisfactorily settled at the thirdstep and if the employee so requests, the grievance will be present-ed by the departmental manager to the general manager whowill discuss the grievance with the employee within seven days ofreceipt of the grievance.

If the grievance involves several employees, those concernedwill nominate not more than three of their colleagues to representthem in the discussions with representatives of the management.

Grievances, if possible, should be settled at the lowest step. Thissaves time and money. Tempers are spared and those most familiarwith the situation are given an opportunity to dispose of it quickly. Ifa grievance involves questions of principle going beyond the individualworker, it should be presented at an advanced level, probably the higheststep of the procedure. Sometimes this can be done informally.

The foreman or the lowest level supervisor is usually the first personto learn at managerial level of a grievance and is usually the management'srepresentative in the first formal step of any procedure. His manner inhandling the problem has an important effect on the success of the wholeprocedure. If he is ineffective or unapproachable, delay and furtherdiscontent may result.

The role of a foreman or supervisor must be clearly defined, otherwise,he may either identify himself with the employees or consider himselfthe man in the middle between employees and management. It isessential for him to understand that he is management's representativein handling grievances. He must ensure that management's viewpointis represented at the initial step of a grievance procedure.

MAKING GRIEVANCE PROCEDURES EFFECTIVEONE MAJOR problem that must be overcome if procedures are to

be successful is that an employee may be frightened or reluctant topresent grievances. It is not uncommon for employees to grumbleamong themselves and accept what they consider to be unfair treatmentbecause they believe that they will be looked up with disfavour and maylose their jobs if they voice a complaint. Such a situation is not con-ducive to harmony and may adversely affect efficiency and morale. Con-sequently, it is very important, when introducing grievance procedures,to ensure that all employees are made aware that the procedures are fortheir benefit and that they should use them when necessary. This ismore difficult if the procedure is not set out in writing. In any event,the employee should know whom to approach initially with a grievanceand the subsequent steps which may be taken. The management shouldalso clearly define who is responsible for receiving grievances at thevarious levels and how they are to be processed. This requires effectivecommunication between the management, particularly line supervision,and all employees.

The procedure must be speedy. If grievances are not dealt withpromptly, the facts may become blurred, thus making it more difficultto find an acceptable solution. Delays may also undermine theemployees' confidence in the good faith of management. The proce-dures should state time limits within which answers or decisions must begiven at various stages.

Another problem that may arise if there is a delay in processing agrievance is the refusal of an employee to obey an order which he con-siders as violating his rights or status. This could seriously underminethe usually-accepted practice of an employee carrying out the instructionwhile his complaint is being considered.

A cause for delay is often the lack of authority of junior managers tomake a decision or their refusal to accept responsibility for a decisionwhich is theirs. These points can seriously undermine the procedureif management representatives at the various steps, particularly at thelower levels, are not given authority to give answers or to make firmdecisions. Although it is accepted that it may sometimes be advisableto consult the personnel department or higher management, it is im-portant for immediate supervisors to be given the authority to act quicklyand to take decisions on grievances, particularly those of a minor nature.

This helps line supervisors to retain the respect of those whom the>supervise. Care must be taken if the grievance involves a complaintagainst the supervisor. In such cases, it is advisable for the grievanceto be dealt with immediately at the next step of the procedure abovethat of the supervisor.

MISCONDUCT AND DISMISSAL PROCEDURESIF IT IS necessary to take action, including dismissal of an employee

for more serious cases of misconduct, the employee concerned shouldhave the right to appeal under the grievance procedure. Clearly-defineddisciplinary procedures should be introduced and made known to allemployees and included in an employee handbook. The proceduresshould include the following:

WarningThis should apply in all cases involving failure to meet specified

requirements, usually set out in the works or office rules, with referenceto conduct, attendance, and work standards.

The first warning, usually given at foreman or supervisor level,should not be recorded. If the employee repeats the offence or doesnot improve the standard of work, a formal warning should be givenin writing and recorded. The employee should be informed andtold of the action which will be taken by management should herepeat the offence or continue to fail to reach the required standard.

Suspension

Although a suspension without pay for a maximum period of 14days can, in some cases, be an alternative to dismissal, care must betaken to comply with the law. The decision to suspend without payshould be made at a high level of management, probably the generalmanager.

Dismissal with appropriate notice

This action is usually taken when an employee, after written warning,continues to commit an offence or fails to improve his work standardto the specified requirement. It is most important to ensure thatthe employee has been fully informed of his shortcomings and thatthe warnings have been recorded.

Dismissal without notice

This form of dismissal should only be taken in extreme cases ofgross misconduct. The offences, including those stipulated in legisla-tion, which would result in such action being taken should, if possible,be clearly defined and made known to employees. They should beincluded in the works or office rules and also in the employee handbook,if the firm has one.

Appeal

Satisfaction at work will only become a reality if employees can seefrom management's actions that it not only believes in fairness butpractises it when dealing with employees. This can be demonstratedby ensuring that a disciplined employee has fair and quick avenuesfor appeal.

THE LABOUR DEPARTMENT'S ROLEThe Labour Department's policy is to encourage the widespread

acceptance of the need for establishing procedures for dealing withgrievances, misconduct, and dismissals. These procedures must, ofcourse, be adapted to the special requirements of the particular placeof employment. The Labour Relations Service of the Labour Depart-ment is available to give guidance on the establishment of such proce-dures.

APPENDIX

Here is one example of one procedure for dealing with misconduct anddismissal:

THE company hopes that, by providing reasonable conditions of employment andworking conditions, employees will, in return, perform their work satisfactorily.

So that employees can fully understand the standards expected of them in attendance,conduct, and work performance, works or office rules have been made. These arecontained in the employee handbook issued to every employee. If it is necessary totake disciplinary action against any employee for not following the standards set outin the works or office rules, a procedure has been designed which is considered fair toboth the employee and the company. This procedure is as follows:

Action for unsatisfactory conduct will be dealt with in one of the following ways:

Warning.

Suspension.

Dismissal after the appropriate notice has been given.

Dismissal without notice.

WarningA warning will be given in cases of bad time-keeping, poor attendance, or an

employee's inability to maintain the required standard of work performance. Inthe first instance, the foreman or supervisor will explain to the employee concernedhis shortcomings and give the employee an opportunity to improve over a period oftime.

If the employee's conduct does not improve, he will receive a formal warning bythe foreman or supervisor. This warning will either be recorded in his presence orthe verbal formal warning will be confirmed in writing. If the employee concernedstill shows no improvement in his conduct or work performance, a final verbal warningwill be given by the foreman or supervisor in the presence of the personnel officer.This final warning will also be either recorded in the employee's presence or confirmedin writing.

Suspension

The action which the company will take on proven cases of misconduct will dependupon the seriousness of the offence.

When it appears that an employee has committed misconduct, the foreman orsupervisor may suspend, for one day, the employee concerned to enable the managerand the personnel officer to investigate the alleged misconduct. During this periodof suspension, the employee will be paid at the normal daily rate of pay or its equivalent.During the investigation, the employee will be given an opportunity to state his case.

% In exceptional cases, suspension without pay may be warranted but such a deci-sion can only be made by the manager.

If the investigation proves that an employee has committed misconduct, one of thefollowing actions will be taken:

(a) Re-instatement with the suspension treated, as a first or second warning accord-ing to the circumstances of the case.

(b) Suspension without pay for up to 14 days. The suspension will also be re-corded.

(c) Dismissal after appropriate notice or payment in lieu of notice.(d) Dismissed immediately without notice or payment in lieu of notice.

Dismissal after appropriate notice has been givenIf an employee, who has been given every opportunity to correct his shortcomings

and who has received a final warning, continues to misconduct himself or rails tomaintain the required work standards, he may be dismissed. The dismissal will takeplace after the appropriate notice has been given or payment made in lieu of notice.

Final dismissal must be authorized by the manager before action is taken.

Dismissal without notice or payment in lieu of noticeThe decision to dismiss without notice will only be taken in extreme cases, including

gross misconduct, serious neglect of duty, or other offences of comparable gravity.The decision to dismiss without notice or payment in lieu of notice will, in all cases,be decided by the manager.

Right of appealAt each step of this procedure, the employee concerned has the right of appeal up

to and including the manager level. In addition, when making an appeal, he may beaccompanied by an employee of his own choice.