Employee Grievance Procedure for Employers

Understanding how to implement an employee grievance procedure is vital for employers, managers and business owners in the UK. I’m John Bloor of EBS Law and I have advised many employers on handling complaints, misunderstandings and formal grievances. A clear procedure helps protect your business and supports a fair culture.

Why You Need an Employee Grievance Procedure

When a member of staff feels something is unfair, perhaps workplace behaviour, discrimination, workload or a manager’s decision things can escalate quickly if you do not have a proper route for raising the concern.  Often an informal issue becomes formal. A structured employee grievance procedure gives your business a way to respond calmly, investigate thoroughly and resolve matters before they become costly.

Moreover, the guidance from the Advisory, Conciliation and Arbitration Service (ACAS) is regularly used by tribunals when assessing whether an employer acted reasonably. If you ignore the procedure or act inconsistently, you increase risk of claims and higher compensation.

Key Elements of a Good Employee Grievance Procedure

A robust employee grievance procedure should include several core components. Without them you leave yourself open to criticism in a dispute.

• Informal resolution first – encourage staff to raise concerns early with line managers; many issues can be resolved without formal steps.
• Formal written grievance – if informal efforts fail, the employee should submit their grievance in writing, stating the nature of their complaint and desired outcome.
• Investigation – appoint an impartial investigator, interview relevant people, review documents. Keep records.
• Grievance meeting – invite the employee to discuss the grievance, allow them to be accompanied, give notice and share evidence.
• Decision and outcome – write to the employee with your findings, decision and any action to be taken; explain right to appeal.
• Appeal stage – allow a genuinely independent appeal review, ideally by someone not involved earlier.

In my practice I’ve come across employers who skipped the appeal step or delayed the decision for months. That kind of delay usually undermines your defence if things go to tribunal.

How to Run the Procedure in Practice

Let me walk you through a practical scenario. Imagine a small technology firm where an employee raises a grievance about their manager’s behaviour towards them. Without a formal route, the employee leaves feeling unheard and later claims constructive dismissal. I advised the employer to implement the following steps:

First, we encouraged an informal chat between the manager and employee, facilitated by HR. That resolved some misunderstandings but then the employee submitted a formal grievance. We appointed an independent investigator (someone not the manager’s line manager) who interviewed witnesses, the manager and the employee and reviewed email records. A grievance meeting was held with the employee accompanied by a colleague. After review, the employer issued a written decision, found some of the concerns substantiated, arranged refresher management training for the manager and offered a monitoring period. The employee accepted. Because proper process had been followed, the risk of tribunal was reduced.

I’ve also advised employers who treated grievances as minor complaints, handled them informally and failed to document anything. Later, when the employee lodged a discrimination or unfair dismissal claim, the tribunal looked critically at the lack of records and process. So my message is: do not assume informal is always enough. If the issue has potential legal elements (bullying, discrimination, harassment), a formal route is advisable.

The Role of Policy and Training

Your employee grievance procedure will only work if managers and staff know it exists and how it works. You should embed the procedure in your employee handbook or policy documents. A policy document titled something like “Grievance Policy for Employers” should clearly set out the process. Many employers assume they have done this but in reality the policy is buried in an old handbook, not communicated or updated.

Training is vital and managers need to be familiar with their responsibilities. For example, failing to allow accompaniment or investigating their own direct reports can raise questions of bias. Training should cover: recognising a grievance, investigating fairly, writing notes, keeping confidentiality, ending the process promptly and allowing appeal.

Avoiding Common Pitfalls with Employee Grievance Procedure

Even with good intentions, employers often make mistakes:

• Delaying acknowledgement or investigation – waiting weeks or months reduces your credibility.
• Allowing bias – if the manager concerned conducts the investigation, the tribunal may question impartiality.
• Failing to keep records – no notes, no witness statements, no outcome letter. That leaves you exposed.
• Confusing grievance and disciplinary – punish someone for raising a complaint or handle it like performance rather than a concern about the workplace. That can trigger retaliation claims.
• Not treating serious issues seriously – when grievances involve harassment, bullying or discrimination, a light-touch response is no longer acceptable. This can lead to unlimited compensation under the Equality Act 2010.

In one case I advised a mid-sized firm that ignored a grievance about harassment. The investigation was superficial, no records were kept and the employee later brought a tribunal claim. The employer’s lack of process made their position very difficult. It cost time, money and reputation.

Grievances After Employment Ends

You might assume that once someone leaves your employment you are off the hook. In fact that is not always true. Former employees can raise grievances even after their contract end and you should treat that seriously.

So consider whether your grievance policy should include a route for former employees. Ensure you keep records for a reasonable period. It may feel burdensome for a small business but the risk is real.

Why Following the Procedure Protects Your Business

When disputes escalate to an employment tribunal, one of the first questions is: Did the employer act reasonably in handling the concern? Having a clear employee grievance procedure and showing you followed it, strengthens your position. If you don’t, compensation awards can be increased by up to 25% for failure to follow the Advisory, Conciliation and Arbitration Service Code of Practice.

It also sends a message to your workforce that you take concerns seriously. This helps maintain morale, trust and productivity. By contrast, a culture where grievances are ignored or swept under the carpet often leads to a higher turnover and costly recruitment cycles.

As I tell many business owners: the cheapest mistake is the one you don’t deal with. Investing time in a proper employee grievance procedure often pays dividends in stability, culture and risk management.

When You Should Seek Legal Advice

You may decide this is straightforward and handle the matter yourself. But seek expert help if:

• The grievance involves alleged discrimination, harassment or bullying (which may trigger other rights under the Equality Act).
• The employee is threatening tribunal action or has raised other connected claims.
• The investigation is complex (multiple witnesses, remote working, sensitive documents).

In those situations, having a solicitor who specialises in employment law on your side gives you confidence that you’re applying the process right. At EBS Law, we advise employers on policy drafting, training managers and supporting full investigations.

Finally, remember: a good procedure is only part of the solution. The culture of your business matters too. Encouraging open dialogue, treating staff fairly and acting when concerns surface will prevent many grievances from ever reaching formal stage.

Useful Resources on Our Site

• ACAS Grievance Procedure
• Grievance Policy Information for Employers
• Can an Ex Employee Raise a Grievance?