Grievance Procedure – It’s the Law, Not “Best Practice”!

Start‑ups and SMEs often assume that grievances are an HR “nice‑to‑have”. They’re not - they’re law!

A grievance procedure is a legal requirement and failing to follow it can increase employment tribunal compensation awards by up to 25%.

If an employee raises a concern about their treatment, pay, safety, discrimination, bullying, workload, or anything affecting their employment, you must follow a fair and transparent process. No shortcuts, no ‘fudging’ the outcome!

Here’s the simple, legally‑compliant grievance process every employer must follow:

1️⃣ Acknowledge the grievance promptly

Confirm receipt in writing and reassure the employee it will be handled fairly and confidentially.

2️⃣ Investigate the concerns

Gather facts, speak to relevant people, review documents, and keep clear notes.

A fair investigation is a legal requirement and not optional.

3️⃣ Hold a grievance meeting

Invite the employee to discuss their concerns.

They have the right to be accompanied by a colleague or trade union representative if a member of a union.

4️⃣ Make a decision and communicate it in writing

Explain your findings, the outcome, and any actions you will take.

Be clear, factual and timely.

5️⃣ Offer the employee the right of appeal

Employees must be permitted to challenge the outcome. Appeals should be heard by someone not previously involved in the grievance, wherever possible.

Employer responsibilities (in plain English):

• Make sure that your company has a grievance policy that is accessible to all employees

• Follow the ACAS Code every time!

• Keep the process fair, unbiased and evidence‑based

• Maintain confidentiality

• Document and retain clear records

• Act promptly - delays increase risk to your business and possibly employee welfare

• Train your managers to understand exactly how to run a complaint grievance process

Ignoring or mishandling grievances doesn’t make them disappear, it makes them a potential legal claim.

If you’re a founder or SME owner, a compliant grievance process isn’t bureaucracy.  It’s risk protection, culture protection, and your legal obligation.

No idea where to start or how to format a grievance investigation report? Contact us for simple and straightforward support.