Informal procedure: Overview, definition, and example
What is an informal procedure?
An informal procedure refers to a process or set of steps followed to resolve a matter or make a decision that is not governed by strict formal rules or regulations. Informal procedures are often more flexible and less structured than formal procedures, allowing for quicker, less rigid decision-making. These procedures are commonly used in less complex situations, where the need for thorough documentation, elaborate hearings, or rigid rules of conduct is not required. Informal procedures can be applied in various contexts, including business negotiations, minor legal disputes, or internal company matters.
In simpler terms, an informal procedure is a more relaxed and flexible approach to handling a situation or decision, often with fewer formalities and rules compared to a formal procedure.
Why is an informal procedure important?
An informal procedure is important because it provides a quicker, more cost-effective way to address issues or make decisions without the complexities of formal processes. It is especially useful in situations where time, resources, or complexity do not warrant a full, formal procedure. For businesses or organizations, informal procedures can help resolve minor disputes, facilitate negotiations, or address internal matters efficiently without the need for lengthy procedures.
For individuals, informal procedures can offer a more approachable and less intimidating way to resolve issues, especially when the stakes are lower or the dispute is minor.
Understanding informal procedure through an example
Imagine a company has a policy that allows employees to informally resolve minor grievances through direct conversations with their supervisor. If an employee feels their concerns are not being addressed, they may approach the supervisor to have a one-on-one discussion to resolve the issue. This informal procedure does not require the involvement of human resources or formal documentation. The employee and supervisor work together to find a solution without engaging in a formal hearing or investigation.
In another example, two businesses are negotiating a partnership agreement. Instead of going through a lengthy, formal legal process, they may agree to an informal procedure of discussion and negotiation, where they meet regularly to discuss terms and make adjustments as needed. Once the basic terms are agreed upon, they can formalize the agreement in writing, but the process up until that point is handled informally.
Example of an informal procedure clause
Here’s how an informal procedure clause might appear in a business contract or internal policy:
"In the event of a dispute or issue arising under this Agreement, the Parties agree to first attempt to resolve the matter through informal discussions between designated representatives. The Parties shall work in good faith to find a mutually agreeable solution without the need for formal arbitration or legal proceedings. If the matter is not resolved through informal procedures, the Parties may proceed to formal dispute resolution as outlined in Section [X]."
Conclusion
An informal procedure provides a flexible, streamlined approach to resolving issues and making decisions without the need for strict adherence to formal rules or regulations. It allows businesses and individuals to address matters efficiently and amicably, particularly when the stakes are lower or the issue is less complex.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.