THE beginning of October brings another round of employment legislation and some of the most far-reaching changes for 25 years.

If the changes are implemented properly, employers will be able to manage with more confidence. Ignored or mishandled, employers could face severe financial penalties.

Brian Kemp, head of Tenon HR in the southern region, said: "Two of the major changes coming up require employers to act now or run the risk of expensive claims in employment tribunals."

The first change is the introduction of Statutory Disciplinary and Grievance Procedures. Employers will have to have written procedures for handling matters of discipline and for resolving grievances and disputes.

Failure to follow disciplinary procedures properly will mean that any dismissal will automatically be deemed unfair and compensation may be increased by up to 50 per cent.

Employees who fail to use the grievance procedures before taking their case to an employment tribunal may have any compensation decreased.

There will also be changes to the Disability Discrimination Act, which will now cover all employers, making it more important than ever to review recruitment and selection policies.

Employers need to understand the requirement to make physical adjustments to the workplace environment, and the need for more flexible policies relating to sickness and absence.

Mr Kemp (pictured) said: "All managers affected by the changes should be properly trained in handling issues relating to discipline, grievances and non-discrimination. Tribunal cases can be won or lost on the basis of whether procedures have been followed."

He added: "Clear and unambiguous written policies and procedures should be put into place immediately to cover discipline, grievances and non-discrimination.

"Those employers who already have established policies should prepare updated versions compliant with the new legislation.

"Employees should also be made aware of their new responsibilities in resolving disputes."

The new laws will affect 1.1 million small businesses for the first time and a free guide, Top Tips for Small Businesses, can be viewed online at www.drc-gb.org or by telephoning the helpline 08457 622633.