Grievance Procedure: Steps for Employers

Dealing with grievances in an effective and proportionate way is important when it comes to minimising conflict in the workplace, not to mention the risk of tribunal claims.

The following guide for employers sets out the key elements of a lawful grievance procedure, including the possible grievance outcomes resulting from either an informal or formal grievance, with illustrative examples of grievances and their outcomes. We also look at what a grievance outcome letter should include.

 

Section A: What is a Grievance?

 

A grievance is a work-related complaint brought by an employee. Grievances should be used to bring issues to the employer’s attention for the matter to be investigated and resolved fairly.

Examples of reasons for making a work-related grievance can include health and safety concerns, harassment from another member of staff, the behaviour of a line manager, or worries over changes in work conditions.

Employees are generally expected to raise any workplace concerns informally, usually to their line manager or supervisor. In most cases, the issue will be satisfactorily resolved. Where the employee is not satisfied that the issue has been addressed, they have the right to bring a formal complaint (‘grievance’). The employer must then respond to the complaint and by following a fair and lawful grievance procedure.

 

Section B: Informal & Formal Grievance Procedures

 

The possible grievance outcomes available to employers will differ, depending on whether a grievance is raised and resolved on either an informal or formal basis. This, in turn, will very much depend on the nature of the problem raised or complaint made, where grievances at work can cover all kinds of different scenarios, from issues in relation to the conduct of other members of staff to the acts or omissions of the employer.

An informal grievance is where an employee has raised a problem or made a complaint verbally, and is happy for the employer to deal with the matter informally, where this approach is usually limited to minor grievances. In contrast, a formal grievance is where an employee puts the matter in writing, in response to which an employer should follow their formal grievance procedures. A formal approach will be required for more serious or ongoing complaints, for example, where an informal approach has not worked, or even for minor issues but the employee would prefer the matter to be dealt with formally.

 

1. Informal Grievances

 

If an employee has a grievance at work, it is generally recommended that they raise this first informally. A concern or complaint could be taken up with either their boss, line manager, team leader, someone from HR, or even someone from payroll, for example, where the matter relates to a salary discrepancy. However, the employer should take the matter seriously, even if a grievance is made verbally on an informal basis, so as to maintain a good working relationship with the employee and avoid a formal grievance procedure.

Whilst employers should be open to resolving problems quickly in an informal way, equally, they may need to escalate the matter into a formal grievance if the problem raised or the complaint made is especially serious or ongoing. This could be a serious one-off incident or any recurring complaint which has not been previously resolved informally.

In circumstances where the matter is to be handled informally, there are various possible options available to the employer as to how to deal with this. For example, where a complaint has been made about another member of staff, that individual’s line manager or team leader could be asked to have a quiet word with them. That individual could also be given a verbal warning and even asked, if appropriate, to apologise to the complainant.

In the context of any complaint about something that the employer has or has not done, the employer may be able to offer to rectify the problem, either immediately or as soon as possible, providing the complainant with an explanation and an apology. However, solving the problem should be a two-way process, so that the employer allows the employee to explain the basis of their grievance and what they would like to be done about it, and the employee also listens to what the employer has to say as to what can be done.

In all cases, regardless of the way in which an informal grievance is handled, the employer must retain a record of the nature of the complaint, how this was dealt with and the outcome. This is because an informal grievance, where ineffective in fully resolving a matter, may need to be escalated into a formal grievance. Equally, a grievance can just as easily escalate into a claim before the employment tribunal, so it is important that a paper trial is maintained of what has happened and what steps have been taken by the employer. 

At the conclusion of an informal grievance, the employer should also follow up on the matter shortly after. They should ask the employee if the problem is now resolved for them. If the answer is in the negative, the employer will need to explore what has happened subsequently and why the informal procedure has not been effective, together with what else can be done. The employee should also be reminded that they may need to put the matter in writing, so that a formal grievance procedure can be instigated.  

 

2. Formal Grievances

 

If an employee has a serious or ongoing grievance at work, they should be encouraged to put this in writing. In this way, the employer can instigate its formal grievance procedure to deal with the matter appropriately. Once a written complaint has been made, the employer is duty bound to follow a formal grievance procedure, investigating the matter in full, and providing the employee with a written outcome and the right of appeal.

All employers must have in place a written policy and process when it comes to lodging a formal grievance. This should provide employees with clear and comprehensible guidance on the steps to be taken when making a complaint in writing, and what they can expect to happen, both procedurally and in terms of the possible grievance outcomes. The procedure adopted must, as an absolute minimum, follow the guidance as set out in the Acas Code of Practice on disciplinary and grievance procedures. This Code sets out the procedure that both employer and employee should follow when raising and resolving a formal grievance, including basic requirements of fairness and reasonable behaviour within this context.

In circumstances where the employer fails to follow a full and fair procedure in accordance with the Acas Code of Practice, this is not only more likely to lead to a tribunal claim, but it can also affect the outcome if things reach an employment tribunal. In particular, if the tribunal feels that an employer has unreasonably failed to comply with any provision of the Code, it has the power to increase an award they have made by up to 25%. Equally, however, where an employee fails to raise a formal written grievance before making a tribunal claim, any failure to do so may result in a reduction in any award of damages.

The practical guidance provided under the Acas Code is not weighted in favour of the complainant, but rather it is about creating fairness all round, in respect of both the person lodging a formal complaint and the person or people against whom any allegations have been made. This means that, in all formal grievances, the employer should:

 

a. Conduct the necessary investigations to establish the facts

b. Raise and deal with issues promptly, where the employer should arrange for a grievance hearing ideally within 5 working days

c. Give the complainant an opportunity to explain their grievance in detail and outline what steps they would like to be taken to address this

d. Allow employees to be accompanied at any grievance hearing, where the employee has a right to be accompanied, on reasonable request, in respect of any hearing dealing with a complaint about a statutory or contractual duty owed by the employer to the employee

e. Not unreasonably delay in making and confirming a decision following a grievance hearing, where the employer should provide the employee with a written outcome as soon as possible, normally within 24 hours of that hearing

f. Where further information is needed before making a decision, for example, where others are involved and evidence needs to be gathered from all sides, the employee should be informed of this without delay and told of the likely timescales involved

g. When making a decision following a grievance investigation and hearing, always act consistently with previous decisions around similar grievances

h. Allow an employee to appeal against any formal grievance decision made, either where they feel that the outcome is unlikely to resolve the problem, or that any stage of the grievance procedure undertaken by the employer was wrong or unfair.

 

One of the most important factors when handling a grievance, and possibly the easiest to overlook, is keeping the employee updated while their grievance is investigated. A lack of communication could lead to your employee feeling that their grievance has not been taken seriously. Regular, constructive contact will help to maintain a better working relationship with your employee.

Where other members of staff are involved in the grievance, for instance, where a complaint has been made against them, communication should also be maintained with that person.

A record of any contact relating to the grievance, whether with the initiating employee, a related employee or professional advice, such as occupational health, should be maintained throughout the process.

In some cases, the employer and employee may decide that it would be advantageous to enlist a third party in the dispute resolution process, such as mediation to help the parties arrive to a mutually agreeable solution. The grievance process may be temporarily halted in such cases. The grievance procedure should specify where and when mediators may be utilised in this situation.

 

Section C: Grievance Procedure Steps to Follow

 

Employers should have a grievance policy in place to enable employees to understand how to make work-related complaints, and to support managers in handling such issues effectively.

The policy should be kept up to date and made accessible to all members of staff, for instance, included in the Staff Handbook.

The policy should also outline the procedure for making and handling a grievance.

For employers, it is important to ensure their grievance procedure is followed fully and correctly when dealing with employee complaints. The Acas Code of Practice outlines the procedure that both employers and employees should follow when dealing with a grievance at work. While the Acas Code is not legally binding, it is considered best practice. In the event of a tribunal claim, the tribunal can take into consideration whether the employer followed the recommended guidance under the Code when making an award, which can result in an increase in the amount of compensation paid to an employee.

In brief, the grievance procedure should include the following steps:

 

Step	Description
1. Raise the Issue Informally	Employees should be encouraged to address the issue informally first, if appropriate, to seek an early resolution.
2. Submit a Grievance Letter	If the matter is not resolved informally, the employee submits a formal grievance letter to their employer.
3. Employer Investigates the Grievance	The employer conducts an investigation into the grievance to gather relevant information and evidence.
4. Grievance Hearing	A formal grievance hearing is held where the employee can present their case and the employer can ask questions.
5. Decision and Action	The employer makes a decision based on the investigation and hearing, and any necessary action is taken.
6. Employee Makes an Appeal (if necessary)	If the employee is not satisfied with the decision, they have the right to appeal the decision.
7. Appeal Hearing	An appeal hearing is held to reconsider the decision, where the employee can present their reasons for the appeal.
8. Appeal Decision	The final decision is made following the appeal hearing, concluding the grievance process.

 

Employers should also ensure that all relevant members of staff are fully trained in how to handle a grievance in consideration of the grievance procedure and the Acas Code of Practice. This will help to mitigate legal risk while supporting positive employee relations.

 

Step 1: Responding to a Grievance Letter

 

The first step in a grievance procedure, where the employee has raised the issue informally (if appropriate) without a satisfactory outcome, is for the employee to write a grievance letter. This should detail the nature of their complaint and provide any evidence in support.

Once received, the employer should respond to the employee confirming receipt of the letter. The response should also provide assurance that the matter will be investigated, and outline what will happen next, including timelines.

 

Step 2: Investigation

 

A fair process requires a full consideration of the facts relating to the complaint. To determine the facts, the employer should conduct an investigation.

The investigation should be carried out by a member of staff who is not involved in the complaint. Depending on the size of the business, this may fall to a member of the HR department, an unrelated manager or the business owner themselves. For smaller companies, it may require an external professional to be commissioned, to ensure the investigation remains objective and fair for all parties concerned.

A written record should be kept of all information gathered, contact and communications with all parties, be that the employee, other staff member or source of specialist knowledge, decisions reached, actions taken and the response of the employee who raised the grievance. Any personal information should be kept confidential to protect the rights of all concerned.

It is important to remember that the investigation is a fact-finding exercise in advance of the grievance hearing. Conclusions and decisions should be delayed until all evidence has been gathered and discussed with the complainant employee at the grievance hearing.

Where the grievance could result in disciplinary action being taken against another member of staff, it is advisable to delay such action until the investigation is complete and the grievance hearing has been held.

Where the grievance is ‘between’ members of staff who come into contact with each other at work and the situation could worsen or be uncomfortable during the investigation, for instance, an alleged bullying, it may be that adjustments can be made so that contact is reduced or removed altogether until the grievance hearing is held. Suspension may be considered but it must be made clear that this does not constitute disciplinary action. Employers are advised to take professional advice if considering  suspending an employee due to a grievance.

During the investigation, the employer may conclude that the complaint can be resolved without further formal action if there is agreement with the employee and this action is seen as fair to all concerned.

Should it be decided that there is a case for the grievance to be upheld, the next stage would be the grievance hearing.

 

Step 3: Grievance Hearing

 

At the grievance hearing, all evidence and statements should be examined to allow the employer to decide on the grievance outcome.

Copies of all relevant documents, including statements, should be provided to the employee before the hearing. The employee may ask their witnesses to attend the hearing. The employer may also call witnesses to the hearing.

The grievance hearing should be held in a private room where there will be no interruptions.

Notes should be taken during the hearing. The employee should be asked to review the notes and sign and date a copy at the end of the meeting as a record of their contemporaneous agreement.

The hearing process typically follows a structured format. It begins with an introduction of those attending the hearing, including the employee who raised the grievance, the employer, and any witnesses. The employee then states their grievance and explains how they would like the issue to be resolved. Following this, the employee presents any evidence they have to support their grievance.

Witness statements are then heard, and witnesses may be questioned. If the employee has brought a companion or representative to the hearing, that person will have the opportunity to question the witnesses, make a statement, and discuss the case with the employer. However, the companion or representative will not be questioned by the employee.

The individual responsible for deciding the outcome of the grievance should summarise the evidence and key points to ensure agreement with all parties. If there is insufficient or contradictory evidence, the hearing may be adjourned until these issues are resolved. The decision might be reserved, meaning it is delayed while the evidence is considered. If so, the employee will be informed when they can expect a decision. Alternatively, a decision may be reached and communicated at the end of the hearing. If the grievance is upheld, the employer is then required to take action to resolve the issue.

 

Step 4: Grievance Outcome

 

After a formal grievance procedure, the employer should decide on what is fair and reasonable based on the findings from their investigation(s) and the hearing, as well as what decisions have been made in any similar cases in the workplace.

If a grievance is upheld, further steps may need to be taken to resolve the matter complained of, for example, taking disciplinary action against another employee where allegations have been raised against them. The employer may also need to take steps to address any matters for which they are directly responsible, for example, discharging any arrears of pay or making changes to the complainant’s working conditions. If the employer decides that no action is needed, an adequate explanation must be given to the employee.

Finally, the employer must keep a record of the grievance and its outcome, including the employee’s complaint, the decisions made, the actions taken and the reasons for this.

 

Step 5: Grievance Outcome Letter

 

Following a grievance hearing, the employer’s decision and the outcome of that hearing must be set out in writing. Regardless of whether the grievance is upheld or rejected, the employer must set out the reasons for their decision and, where appropriate, the steps that will be taken. The employer must also inform the employee of their right to appeal. The employee can appeal a grievance outcome if they feel that the action decided upon will not resolve the problem, or that any stage of the grievance procedure was wrong or unfair.

The contents of a grievance outcome letter will very much depend on the nature of the complaint and the findings made by the employer, but it must be set out in clear and comprehensible terms. It must also only state the facts, not unfounded statements, that can be backed up by evidence. Even if the outcome is unfavourable to the employee, if they can understand why that decision has been reached, they are less likely to challenge this.

 

Section D: Appeals Process

 

Following a grievance hearing, an employee has the right to challenge an employer’s decision. When you write to them with your decision, you must advise of their right to appeal, including the timeframes in which they can make their appeal against the grievance outcome.

Should the decision be made not to uphold the grievance, the employee has the right to appeal this decision. They may also appeal against any part of the grievance process that they believe was unfair or incorrect. Their appeal should be made in writing.

An appeal meeting is held and the employer makes a final decision.

Should the employee remain unhappy with the decision, their options may include resigning and claiming constructive dismissal.

If the employee decides to appeal, you must make every effort to arrange the hearing without undue delay.

 

1. Preparing for the Appeal Hearing

 

Before conducting an appeal hearing, it is important to ensure that the grievance procedure is being followed correctly. Reviewing the procedure carefully can help prevent any missteps. Gathering all necessary information and records is crucial, especially if new evidence has emerged since the initial hearing. Arrangements should be made for someone to take notes during the hearing, and careful planning is needed to select an appropriate time and location for the appeal hearing.

The employee should be given ample notice to prepare for the hearing, allowing them time to gather evidence and consult with any representatives. It is also important to remind the employee of their right to be accompanied by a friend, coworker, or trade union official. If new evidence is being introduced, it may be necessary to interview managers or witnesses, and this could involve obtaining additional statements.

Timeliness in arranging the appeal hearing is essential. If the employee cannot attend the scheduled hearing due to a legitimate reason, such as illness, a suitable alternative date and time should be offered. The employee is required to suggest an alternative date within five working days if they cannot attend the rescheduled hearing. If the original date is not possible for the employer, an alternative must be provided that accommodates both parties.

 

2. Conducting the Appeal Hearing

 

The same general principles apply for the appeal hearing as with the initial grievance hearing, with a couple of additional considerations. The appeal hearing should also specifically consider the reasoning behind the appeal and any new evidence that has emerged since the earlier decision.

It is advisable for the appeal hearing to be led by someone different to the initial hearing; preferably a senior figure in the organisation who has not been involved in the grievance process, so as to avoid any allegations of bias. However, if the individual hearing the appeal is the same individual who heard the initial hearing, they should exercise objectivity and make sure they thoroughly and objectively scrutinise the initial decision.

As soon as possible following the hearing, you should write to the employee with your decision and the justification for it.

In the event that the employee does not show up for the rescheduled hearing, the process is over, and you can make your decision at that time. Remember that you must still inform the employee of the decision in writing.

In the event that the appeals procedure is delayed, it is crucial to let the employee know as soon as feasible. If you don’t, a tribunal may raise the amount of any compensation against you.

 

Section E: Grievance Examples

 

Grievances can relate to a broad range of concerns, problems or complaints about an employee’s working conditions or working environment, or someone an employee works with, such as a co-worker or manager, that has made them feel unfairly treated. For example, an employee might want to raise a grievance about things that they are being asked to do as part of their job, or a change in their contractual terms and conditions that has not been agreed, or the way that they are being treated at work, including bullying and harassment.

The following are examples of grievances in relation to two common types of workplace issues: an issue about pay and a complaint about harassment.

 

1. Issue about pay

 

Disputes commonly arise over late payment of wages, deductions, outstanding holiday pay, and unpaid bonuses and commission. In many cases, discrepancies may be down to a simple administrative error or oversight that can be easily and informally dealt with via payroll. However, where there is a substantive disagreement as to what an employee is entitled to be paid, this type of issue can quickly escalate into a formal grievance. In these circumstances, the employer will need to ascertain where any discrepancy has arisen and decide what to do about this. The employer can either agree to uphold the complaint and immediately pay any outstanding sum owed to the employee or continue to dispute the matter. However, if the grievance cannot be resolved internally, this could lead to a claim, such as for unlawful deduction of wages or breach of contract.

 

2. Complaint about Harassment

 

Allegations of unwanted conduct at work often relate to the behaviour of co-workers, although the employer is still responsible for taking reasonable steps to prevent or eradicate unlawful conduct in the workplace. Harassment is a serious matter, where disciplinary proceedings may need to be taken against the perpetrator if a grievance has been upheld. This can then result in the employer issuing a written warning, or even making a decision to dismiss the person responsible.

If the matter is not resolved, the complainant may be able to bring a claim for discrimination against both the perpetrator and the employer, where harassment is essentially a form of bullying related to a protected characteristic, such as the complainant’s age, sex or beliefs.

 

Section F: Summary

 

Organisation’s grievance procedures should offer a structured process that allows employees to raise concerns or complaints about workplace issues. The key steps include encouraging the employee to address the issue informally first, followed by a formal grievance letter if the matter remains unresolved. The employer must then investigate the grievance, hold a grievance hearing, and make a decision. If the employee is dissatisfied with the outcome, they have the right to appeal, which involves a further hearing and a final decision.

Key risks for employers through this process include failing to follow the grievance procedure correctly, which can lead to legal challenges and claims of unfair treatment. It’s essential to ensure that the process is fair, impartial, and well-documented. Employers must also be mindful of the confidentiality of the process and the rights of employees to be accompanied by a representative during hearings.

Considerations include the need to handle grievances promptly to avoid escalation, and to ensure that all relevant evidence is considered. Proper training for managers and HR personnel in handling grievances can help minimise the risk of disputes and ensure compliance with employment law.

 

Section G: Need Assistance?

 

DavidsonMorris’ employment lawyers can help with all manner of workforce management issues, including advice on handling workplace complaints and resolving potential disputes. Working closely with our specialist HR consultants, we provide comprehensive guidance covering both the legal and HR aspects of workplace dispute resolution processes, including guidance on grievance procedures. For help and advice, speak to our experts.

 

Section H: Grievance Procedure FAQs

 

What is a grievance procedure?

A grievance procedure is a formal process that allows employees to raise concerns or complaints about workplace issues, such as unfair treatment, harassment, or disputes with colleagues. It provides a structured way for these issues to be addressed and resolved.

 

Why is having a grievance procedure important?

A clear grievance procedure is important because it helps maintain a fair and consistent approach to resolving workplace issues. It ensures that employees have a formal route to voice their concerns and that employers address these concerns in a structured and legally compliant manner.

 

What are the steps in the grievance procedure?

Step 1 – raise the issue informally with the employer. Step 2 – raise the issue formally with a grievance letter. Step 3 – grievance investigation should take place. Step 4 – a grievance hearing may be required to review the evidence and for a decision to be made. Step 5 – the employee has the right to appeal the grievance outcome.

 

Can an employee be accompanied during a grievance hearing?
Yes, employees have the right to be accompanied by a colleague or a trade union representative during a grievance hearing. This ensures that they feel supported and that the process is conducted fairly.

 

What should be included in a grievance letter?

A grievance letter should clearly outline the issue the employee is facing, any relevant details or evidence, and what outcome or resolution they are seeking. It’s important for the letter to be concise and factual.

 

How long does a grievance take?

The grievance procedure can vary in length, depending for example on the complexity of the issue and the number of parties involved. However, it should be conducted as promptly as possible while ensuring a thorough investigation and fair hearing.

 

What happens if the grievance is not resolved after the hearing?

If the employee is not satisfied with the outcome of the grievance hearing, they have the right to appeal the decision. The appeal process involves another hearing, where the case is reviewed again, potentially by a different manager or panel.

 

What if a grievance is ignored?

If an employer fails to act on a grievance, the matter is likely to escalate. The employee’s options will depend on the circumstances and the nature of the complaint or issue. In extreme cases, this could include resigning and bringing a claim constructive dismissal. Take professional advice on the options.

 

What is a good example of grievance?

There are various different examples of common grievances, from complaints about pay and working conditions, to complaints about the conduct of others, such as bullying and harassment.

 

What are the potential outcomes of a grievance procedure?

Outcomes of a grievance procedure can include resolving the issue through mediation, making changes to workplace practices, offering an apology, or, in some cases, disciplinary action against those involved. The aim is to reach a fair resolution that addresses the employee’s concerns.

 

Who gets the grievance outcome letter?

A grievance outcome letter should be given to the complainant, ie; the employee who has made the grievance. This should explain the outcome of any grievance hearing, the reasons for this and any steps that will be taken.

 

What happens after a grievance is upheld?

If a grievance about a co-worker is upheld, the employer may need to instigate disciplinary proceedings against that person. If the grievance relates to the employer’s own conduct, any wrongdoing must be rectified as soon as possible.

 

Section I: Glossary

 

Term	Definition
Grievance Procedure	A formal process that allows employees to raise concerns or complaints about issues in the workplace, such as unfair treatment or harassment.
Grievance Letter	A written document submitted by an employee to formally raise a complaint or concern with their employer.
Grievance Hearing	A formal meeting where the employee presents their grievance and the employer listens, asks questions, and considers the evidence provided.
Appeal	The process by which an employee can request a review of the decision made in response to their grievance if they are not satisfied with the outcome.
Investigation	The process of gathering information and evidence related to a grievance to establish the facts before making a decision.
ACAS	The Advisory, Conciliation and Arbitration Service, a UK organisation that provides guidance on employment law and helps resolve workplace disputes.
Right to be Accompanied	The legal right of an employee to bring a colleague or trade union representative with them to a grievance or disciplinary hearing.
Resolution	The outcome of a grievance procedure, which aims to address and resolve the issues raised by the employee.
Employment Rights Act 1996	A key piece of UK legislation that outlines the rights of employees, including provisions related to grievance procedures.
Mediation	A process where an impartial third party helps both the employee and employer discuss and resolve a grievance before it escalates further.
Disciplinary Action	Steps taken by an employer to address an employee’s behaviour or performance that breaches company policies or standards.
Retaliation	Negative actions taken against an employee because they raised a grievance, which is illegal under UK employment law.
Confidentiality	The principle that all discussions, documents, and proceedings related to a grievance are kept private and not shared outside of the necessary parties.
Code of Practice	Guidelines provided by organisations like ACAS to help employers handle grievances fairly and in line with legal requirements.
Appeal Hearing	A follow-up meeting held if an employee appeals the outcome of a grievance hearing, during which the original decision is reviewed.

 

 

Section J: Additional Resources

 

ACAS – Grievance Procedure Guidance
https://www.acas.org.uk/grievance-procedure
Provides detailed advice on handling grievances in the workplace, including templates and best practices.

 

UK Government – Workplace Disputes and Grievances
https://www.gov.uk/handling-staff-grievances
Official government guidance on resolving workplace disputes, including how to raise and handle grievances.

 

UK Government – Employment Rights Act 1996
https://www.legislation.gov.uk/ukpga/1996/18/contents
The full text of the Employment Rights Act 1996, which outlines the legal framework for employee rights and grievance procedures in the UK.

 

CIPD – Handling Grievances at Work
https://www.cipd.co.uk/knowledge/fundamentals/emp-law/grievances
The Chartered Institute of Personnel and Development (CIPD) offers resources and best practices for HR professionals on managing grievances and disputes.

 

Equality and Human Rights Commission – Employment
https://www.equalityhumanrights.com/en/advice-and-guidance/employment
Guidance from the Equality and Human Rights Commission on dealing with discrimination and harassment in the workplace, including grievance procedures.