Grievance Policy Information for Employers

Every employer needs a clear grievance policy to deal with workplace concerns fairly and lawfully. I’m John Bloor from EBS Law, and in this article I explain what a grievance policy is, why it matters, and how to implement one that protects both your employees and your business.

What is a grievance policy?

It’s a formal procedure an employer puts in place to deal with complaints raised by employees. It provides a structured route for staff to raise issues about their work, managers, or colleagues. A grievance policy ensures that concerns are handled consistently, transparently, and in compliance with employment law.

Why a grievance policy is essential

Without a clear grievance procedure, disputes can escalate quickly, leading to breakdowns in trust, poor morale, and potential tribunal claims. A fair grievance policy gives employees confidence that their concerns will be addressed, while giving employers the opportunity to resolve problems before they become formal disputes.

Legal requirements for a grievance policy

UK employers are not legally obliged to have a written grievance policy, but the ACAS Code of Practice strongly recommends it. Employment tribunals take the Code into account when assessing claims. If you fail to follow the ACAS Code, compensation awarded against you can be increased by up to 25%. This means that, in practice, having and following a policy is essential. For more detail, see ACAS: discipline and grievances at work.

Key stages of a grievance policy

A well-drafted grievance policy should include the following steps:

Informal resolution: Encourage employees to raise concerns informally with their manager before escalating to a formal grievance.
Formal grievance: Set out how an employee should submit a grievance in writing, including to whom it should be sent.
Investigation: Explain how the employer will investigate the complaint, including interviewing witnesses and reviewing evidence.
Hearing: Provide for a formal grievance meeting where the employee can present their case and be accompanied if they wish.
Decision: Confirm how the employer will communicate the outcome and any action to be taken.
Appeal: Give employees the right to appeal if they are not satisfied with the decision.

What to include in a grievance policy

Your grievance policy should be clear, accessible, and tailored to your organisation. It should cover:

Definitions of what constitutes a grievance
The process for raising grievances informally and formally
Timescales for responding to complaints
How grievances will be investigated
Employee rights to be accompanied at meetings
The appeals process

Policies should be communicated to all staff and included in contracts or staff handbooks.

Handling grievances fairly under your grievance policy

Employers must handle grievances objectively and without bias. This means appointing an impartial manager to investigate, ensuring confidentiality, and allowing both sides to present their case. Records of meetings, witness statements, and evidence should be kept carefully. Consistency in applying your policy reduces the risk of claims of unfair treatment or discrimination.

Grievance policy and discrimination complaints

Many grievances relate to discrimination, harassment, or bullying. Employers must take such complaints seriously and investigate them thoroughly. Failure to address them can lead to claims under the Equality Act 2010, with unlimited compensation. A robust grievance policy helps employers demonstrate they acted reasonably and gave employees a fair process to raise concerns.

Common pitfalls:

Employers often make mistakes such as:

Delaying investigations unnecessarily
Failing to keep employees informed of progress
Not allowing the employee to be accompanied
Making decisions without sufficient evidence
Failing to consider appeals objectively

Avoiding these pitfalls ensures grievances are resolved fairly and reduces the risk of escalation to tribunal.

If you would like free advice, John Bloor and the team are here to help. Call John today on 01625 875587 or email enquiries@ebslaw.co.uk for tailored support.

Link between grievance policy and disciplinary policy

Employers should ensure their grievance and disciplinary policies work together. For example, an employee facing disciplinary action may raise a grievance about the process. Employers should decide whether to pause the disciplinary case until the grievance is resolved. Coordinating the two policies fairly avoids claims of bias or unfair treatment.

Checklist for employers:

Have you drafted a clear and accessible grievance policy?
Does your policy follow the ACAS Code of Practice?
Are timescales for responses realistic and transparent?
Have you trained managers on handling grievances fairly?
Does your appeals process provide genuine independence?

Training managers on grievance handling

Even the best grievance policy will fail if managers are not trained to apply it. Training should cover listening skills, impartial investigations, note-taking, confidentiality, and recognising when to escalate issues. Investing in training reduces errors and demonstrates to staff that grievances are taken seriously.

Why having a grievance policy protects your business

A clear grievance policy not only resolves employee concerns but also protects your business. Employment tribunals look favourably on employers who follow fair processes, even if the employee does not agree with the outcome. Conversely, employers who fail to follow the ACAS Code risk higher compensation awards. A good policy is therefore both a compliance tool and a risk management strategy.

Building a positive culture

While policies and procedures are essential, workplace culture matters too. Encouraging open communication, fairness, and respect helps prevent grievances from arising in the first place. Employers should see their grievance policy not as a box-ticking exercise but as part of building a supportive environment where employees feel heard and valued.

Contact John Bloor today for expert support at EBS Law. We’re here to ensure your business stays protected every step of the way. Call 01625 875587 or email enquiries@ebslaw.co.uk.

You may also find these EBS Law resources helpful:

Disclaimer: This article provides general guidance only and does not constitute legal advice. For tailored advice on your specific circumstances, please contact us directly.