How to run a grievance procedure: An employers’ guide

Workplace issues are inevitable. No matter how strong your company culture is, there will be times when someone feels they’ve been mistreated or something isn't quite right. It’s part of life. But that’s where a formal grievance procedure comes in.

In the UK, having a clear grievance procedure isn’t just good practice, it’s an important part of your legal responsibility as an employer. If an employee raises a serious concern and you don’t respond appropriately, you risk legal claims, damaged morale and reputational harm. Following a fair, transparent process helps protect your people and your business.

The ACAS Code of Practice outlines expectations on grievance handling. While the Code itself isn’t law, employment tribunals often refer to it when deciding whether an employer has acted reasonably.

So, what should a grievance procedure look like? Let’s take it step-by-step.

Disclaimer: This article is for general guidance only and does not constitute legal advice. Readers should seek professional assistance to address their specific circumstances.

What is a grievance procedure in the UK?

In short, a grievance procedure is a formal process letting employees raise complaints or concerns about their working environment, treatment at work or how policies are applied. These issues might relate to interactions with colleagues or managers, breaches of contract, discrimination or health and safety matters.

UK employers are expected to have a written grievance policy and employees know where to find it. 

This policy should outline:

• How to raise a grievance (including informal and formal routes)
• What steps the business will take
• Expected timeframes for each stage
• The support available throughout the process

If an employee can’t resolve a concern informally, they may raise a formal grievance. Once that happens, employers must follow their written process and deal with the matter fairly and consistently.

After holding a grievance meeting and reviewing relevant evidence, employers should communicate their decision in writing. Employees also have the right to appeal if they disagree with the outcome.

Having a clear grievance procedure not only supports legal compliance, it builds trust in your leadership, reduces the risk of escalation and ensures all concerns are treated with the care they deserve.

What are grounds for an employee to raise a grievance?

Grievances can arise for all kinds of reasons, and they don’t always follow a neat pattern. They could involve claims of workplace bullying, discrimination, health and safety concerns or disagreements about holiday allocation—and more besides.

Some of the most common grievances include:

• Bullying or harassment: For instance, an employee might report feeling repeatedly undermined by a manager in meetings or receiving inappropriate comments from a colleague.

• Discrimination based on a protected characteristic (like race, gender, religion or disability): Being overlooked for promotion despite strong performance, or feeling excluded from key communications due to a disability or maternity leave.

• Health and safety concerns: For example, an employee might complain if faulty equipment hasn’t been fixed despite multiple reports, or if they’re asked to work at height without proper training.

• Disagreements about pay or working hours: This could include confusion over unpaid overtime, believing a promised flexible working arrangement wasn’t honoured, changes to shift patterns, or disputes around holiday entitlement.

• Feeling unfairly treated or excluded: An employee might raise a grievance if they feel they’ve been left out of projects without explanation, or consistently given fewer opportunities than their peers.

At the heart of it, an employee can raise a grievance if they feel something’s gone wrong. Whether or not the concern turns out to be substantiated (i.e. true), your role as an employer is to listen carefully, investigate fairly and take action where needed.

How do you handle grievances effectively?

Grievances can be sensitive and complex. But when handled effectively, they help employers resolve concerns fairly and protect workplace relationships. 

A clear grievance procedure guides you through each stage: from encouraging informal resolution, to holding a formal meeting, carrying out a thorough investigation and delivering a well-reasoned outcome. You’ll also need to offer a right of appeal and keep records throughout. 

By approaching each step with care, consistency and professionalism, you can manage grievances confidently and maintain a supportive work environment.

What are the steps in a grievance procedure?

Here are the key steps to follow:

1. Informal resolution (where appropriate): Sometimes, an issue can be sorted with a simple conversation. Encourage employees to speak with their manager if they feel comfortable. A quiet word can often resolve things before they escalate.
2. Written grievance submission: If informal steps don’t help (or aren’t appropriate, say, in the case of harassment), the employee should put their complaint in writing. This should include what has happened, relevant dates and any supporting evidence.
3. Grievance meeting: You must invite the employee to a formal meeting to discuss their concerns. Let them bring a colleague or trade union representative if they wish. This is their chance to explain their grievance in detail.
4. Investigation: You’ll need to investigate the issue fairly and thoroughly. This means gathering evidence, speaking to relevant witnesses and keeping detailed notes. See the next section for how to get this right.
5. Decision and outcome: Once the investigation is complete, provide a written response, reporting your decision. Outline what was found, whether the grievance is upheld, and what action (if any) will be taken.
6. Appeal: If the employee disagrees with the outcome, they should be offered the chance to appeal. This should be heard by someone not previously involved.

How should an employer investigate a grievance?

Once an employee raises a grievance, your next step is a fair and thorough investigation. This part of the process matters enormously. It’s where you gather the facts, understand the context and decide what action (if any) is needed. A well-run investigation can help resolve issues early, prevent misunderstandings and show all parties that concerns are taken seriously.

While every case differs, it's important to act without delay. Start investigating promptly and aim for completion within a reasonable timeframe—often five to ten working days, depending on complexity. Delays can lead to frustration or escalate tensions, so it’s best to keep things moving wherever possible.

The person leading the investigation should be impartial and uninvolved in the issue. This might be a manager from another department, a member of the HR team, or in some cases an external consultant. Whoever takes the lead should have the authority, skills and confidence to conduct interviews, review documents and reach a balanced conclusion.

Throughout the process, confidentiality is key. Only those directly involved should be aware of the details, and you’ll need to take care when handling sensitive information (especially with GDPR in mind). Keep accurate records of every conversation, meeting and piece of evidence—you’ll need these if the case is later challenged.

A good investigation includes:

• Reviewing the employee’s complaint and any evidence submitted
• Collecting relevant documentation (emails, policies, contracts, performance records)
• Speaking with witnesses (and taking signed notes)
• Giving the person being complained about an opportunity to respond
• Being open to what both sides have to say without jumping to conclusions

Remember, employees aren’t expected to present a polished legal case. If they do provide evidence, great. But it’s your responsibility to ask the right questions, dig deeper where needed, and assess the overall picture.

How long does an employer have to respond to a grievance in the UK?

Although UK law doesn’t impose a strict deadline, employers must handle grievances promptly. 

In most cases, aim to arrange a meeting within five working days of receiving the grievance. After that, you’ll need a reasonable period to investigate the issue and reach a decision. The exact timings depend on the complexity of the case, but delays should be avoided wherever possible. 

Keeping the employee informed throughout maintains trust and demonstrates the process is taken seriously.

What are the outcomes of a grievance?

Once the grievance meeting and investigation are complete, it’s time to decide on the outcome. Essentially, figuring out what action (if any) is needed. 

This might mean upholding the grievance and making changes in the workplace, rejecting the complaint due to lack of evidence, or beginning a separate disciplinary process if misconduct is uncovered.

After reaching a decision, you should write to the employee to explain the outcome, your reasons and what will happen next. You’ll also need to set out the appeals process and any relevant deadlines.

If the employee appeals, this should be treated as a fresh stage. Ideally, a different manager should hear the appeal, and any new evidence or reasoning should be considered fully before issuing a final written decision.

Here are some more complex scenarios employers may face—such as rejecting a grievance, handling malicious complaints or taking disciplinary action.

Can a grievance be rejected?

Yes, not all grievances will result in action taken. You might conclude:

• There isn’t enough evidence, especially if it involves complaints against another employee.
• The issue falls outside your responsibilities as an employer, such as a straightforward personality clash.
• The grievance has already been resolved, such as changes to shift rota patterns.

Even when a grievance is not upheld, it must be handled respectfully. Explain your reasons clearly and consider offering support (such as mediation or further discussion) to help rebuild relationships.

Occasionally, grievances are made in bad faith—perhaps to target a colleague or disrupt a process. These are known as vexatious or malicious complaints.

As an employer, you must tread carefully. Even if you suspect ill intent, you should still follow a fair process and assess the facts. If a grievance is clearly unfounded and part of a pattern, you can treat this as misconduct. But only once you’ve documented your reasoning and sought advice if needed.

Always avoid assumptions and protect the privacy of everyone involved.

Can a grievance turn into a disciplinary?

Yes. If your investigation finds someone’s breached company policy, you may need to start a disciplinary process. This should be handled as a separate procedure with its own rules, rights and safeguards.

For example, if a grievance uncovers bullying or harassment, the person accused must be given a fair chance to respond under your disciplinary policy. You’ll need to run this alongside or after the grievance procedure, ensuring fairness to all.

Can a grievance lead to dismissal?

Raising a grievance should never be grounds for dismissal in itself. 

However, if an employer fails to handle a grievance fairly, promptly, or in line with the ACAS Code of Practice, it may amount to breach of trust and confidence. In serious cases, this could give the employee grounds to resign and claim constructive dismissal under UK employment law.

A grievance procedure might also uncover issues (such as misconduct by the employee) that may eventually lead to dismissal. Even then, any dismissal must follow a fair and lawful process, with proper investigation and the right to appeal.

Can you sack an employee during a grievance?

This is one of the trickiest areas—and one of the most high-risk.

In general, you should not dismiss someone just because they raised a grievance. Doing so could be seen as victimisation or unfair dismissal, especially if the grievance touches on discrimination or whistleblowing.

However, dismissal might still happen during the process if it's entirely unrelated and supported by clear evidence (for example, ongoing performance issues that predate the grievance).

Always document your rationale and seek HR or legal advice before proceeding. A dismissal during a grievance process should be an absolute last resort.

How can employers prevent workplace grievances escalating?

Whether or not a grievance is upheld, it’s important to follow through thoughtfully. That might include implementing changes, reviewing policies, supporting affected staff, or delivering refresher training for managers. If the employee appeals, ensure the appeal is reviewed by someone impartial. Communicate the final decision clearly and empathetically, keeping written records at every stage.

A well-handled grievance procedure is a chance to learn. For instance, were there early warning signs? Do communication channels need strengthening? Could leadership style or workplace culture be improved?

ACAS provides specific training on discipline and grievance procedures and free e-learning modules. 

But of course, prevention is better than cure. While you can’t stop every issue from arising, you can reduce the chances of complaints by creating a supportive, transparent environment. 

Practical steps include:

• Foster open communication: Make it easy for employees to speak up early, not just in formal meetings, but in casual conversations, one-to-ones or anonymous feedback. For instance, some employers use open-door policies, drop-in HR hours or suggestion boxes to encourage early, low-pressure discussions.

• Train your managers: Equip them to handle conflict and difficult conversations sensitively. This might include practical training on de-escalation techniques, spotting early signs of disengagement and knowing when to escalate concerns to HR.

• Review and refresh policies: Ensure procedures are up to date, accessible and well understood. For example, ensure your grievance policy is clearly explained in induction packs and employee handbooks, and staff know who to speak to if something goes wrong.

• Offer mediation: Informal resolution can often repair working relationships before they deteriorate. Bringing in a neutral third party (whether HR or external) to facilitate a conversation can help resolve misunderstandings and rebuild trust, especially in cases involving personality clashes.

• Monitor staff wellbeing: Use anonymous surveys or regular check-ins to gauge morale and spot patterns. If a whole team reports high stress or poor communication, it might indicate deeper issues that need proactive intervention.

• Address issues early: Don’t wait for a formal complaint if you notice problems brewing. For instance, if an employee becomes withdrawn or there’s growing tension between team members, proactively step in with a quiet conversation before things escalate.

Ultimately, investing in a positive workplace culture builds trust, reduces risk and avoids the stress and disruption of formal grievance procedures.

Final thoughts: why fair grievance handling protects your business

A strong grievance procedure is more than a box-ticking exercise. It’s a vital part of being a fair and responsible employer.

Grievances can be difficult to deal with, especially when emotions run high. But when you respond fairly, consistently and promptly, you show employees their concerns matter. You’ll also protect your business from reputational damage and costly legal claims.

At Howden Insurance, we support businesses across the UK with policies tailored to real-world challenges employers face. For expert guidance on employers’ liability insurance, professional indemnity, legal expenses cover (and more), get in touch with our team today. We’ll help you save money and find the cover you need.