Think before you sack. From October 1 the law on unfair dismissal is changing. And, bosses, beware the consequences if you don't get the new procedures right.

Here, solicitor BARBARA MURRIE, right, who heads up a team of employment experts at Ware & Kay at York, steers us through the pitfalls

MESSAGE to impatient employers in York and North and East Yorkshire: When your incompetent employee bungles again, don't act too quickly in the heat of the moment.

That's good advice at any time but never more than now. The law on unfair dismissal is changing in a way that could mean that impulsive firing by-fired up bosses will ultimately cost time and a lot of money.

As of October 1, any employer dismissing an employee, or employee resigning and claiming constructive dismissal, will have to follow statutory procedures laid down in the Employment Act 2002.

Failure to do so will either make a dismissal automatically unfair and increase the penalties to be awarded, or will prevent the employee from making the claim at all; or even reduce the award claimed.

The procedures are relatively simple and represent what should already be current best practice, although there is devil in the detail and if there are even minor complications or queries about their application, seek legal advice.

In essence, when an employer is contemplating dismissing someone he or she will need to:

Write to the employee telling him/her what the problem is and invite them to a meeting

Give the employee a chance to discuss the issue at that meeting; tell him/her of the outcome and offer right of appeal if the decision is to dismiss

Hold a further meeting by way of appeal if that is what the employee wants

Give the employee the right to be accompanied to the meetings.

For the employee the standard grievance procedure generally mirrors the above.

Naturally the procedures apply over rights to claim unfair dismissal - and therefore generally don't arise in the first year of employment - but employers would be well advised to follow them as a matter of course.

There are pitfalls for bosses. The procedures don't apply only to conduct and capability dismissals, but also to small scale redundancies of fewer than 20 people, the non-renewal of a fixed-term contract, and action short of dismissal such as demotion.

Failure to follow the procedures properly will increase an award made by between 10 and 50 per cent.

So if you act in the heat of the moment you are risking a lot. Never assume there is "no point discussing the matter."

At the same time ensure that managers on the shop floor have had the correct training and follow the procedures as a matter of course.

But remember, sticking to the procedures doesn't in itself make a dismissal unfair. The general law on unfair dismissal still applies.

But getting things right in the first place will bring cost benefits in a business in the long term well beyond sparing it the disruption and expense of defending an Employment Tribunal claim.

Good staff relations lead to better morale, reduced staff turnover and, consequently, improved productivity.

Protecting your business in advance will protect your bottom line.

Updated: 09:08 Tuesday, July 27, 2004