How UK Employers Should Respond When an Employee Raises a Grievance

When an employee starts raising a grievance, many UK employers make the same avoidable mistakes. They react too quickly, treat the issue as a personality clash instead of a formal workplace concern, or try to keep things informal long after the employee has clearly asked for a proper response. Another common error is jumping to conclusions before hearing the employee's account or checking what the grievance procedure actually says.

The problem is not just poor staff relations. A badly handled grievance can feed into wider legal risk around disciplinary action, discrimination, whistleblowing, constructive dismissal and unfair dismissal. It can also damage morale across a small team, especially where founders or managers are personally involved.

This guide explains what raising a grievance means for UK businesses, what legal issues to check before you sign off on a decision, where employers often get caught out, and how to respond in a fair, documented and practical way.

Overview

When an employee raises a grievance, the employer should treat it seriously, follow a fair process, investigate the facts and respond without unnecessary delay. The right approach is usually set by the employer's own grievance policy, the employee's contract and the Acas Code of Practice on disciplinary and grievance procedures.

• Confirm whether the complaint is informal or formal, and record that clearly.
• Check the employment contract, staff handbook and grievance procedure before responding.
• Identify whether the grievance raises risks involving discrimination, bullying, whistleblowing, pay, health and safety or breach of contract.
• Appoint an appropriate manager to handle the matter, ideally someone not directly involved.
• Investigate the complaint fairly, which may include interviews, document review and witness evidence.
• Hold a grievance meeting and allow the employee to be accompanied where the law gives that right.
• Give a reasoned written outcome and offer an appeal.
• Keep records, protect confidentiality as far as possible and avoid retaliatory treatment.

What Raising a Grievance Means For UK Businesses

Raising a grievance is usually an employee telling you they have a workplace concern that they want the business to address. It may be about treatment by a manager, behaviour from colleagues, pay, workload, flexible working, discrimination, bullying, health and safety, contract terms or the way a decision has been made.

For employers, the key point is that a grievance is not just a complaint to manage socially. It can trigger legal duties, procedural expectations and evidence issues that matter later if the relationship breaks down.

What counts as a grievance

A grievance can be raised in writing or verbally. A small business should not assume that only a document labelled “formal grievance” counts. If an employee says they are being bullied, unfairly treated, underpaid, harassed or ignored on a serious workplace issue, that may already require a structured response.

Founders often get caught here when they rely on the employee's tone rather than the substance. An upset email, a Teams message to HR, or a meeting where the employee says they want the matter taken further may all be enough to put the issue on the business's radar.

Why the label matters

Once a grievance is clearly raised, you should decide whether it will be handled informally or formally. That decision affects timing, records, meetings and the employee's right to appeal. It also affects how your business will later show that it acted fairly.

If you are already dealing with performance or conduct concerns, a grievance can complicate matters. The employee may say the disciplinary process is retaliatory, discriminatory or based on inaccurate facts. That does not mean you must stop every other process, but it does mean you should step back and check the order of events carefully.

Why the Acas Code matters

The Acas Code of Practice does not create a standalone claim by itself, but Employment Tribunals do take it seriously. If a grievance is handled unreasonably and the dispute later becomes litigation, compensation can sometimes be adjusted. Even where there is no Tribunal claim, following the Code is a practical way to show that the business acted fairly.

In plain English, the Code expects employers to:

• deal with grievances promptly
• carry out necessary investigations
• inform the employee of the basis for decisions
• hold a meeting to discuss the issue
• allow the employee to be accompanied in the right circumstances
• offer a right of appeal

Why this matters more in a small business

In a startup or SME, the manager named in the grievance may also be the founder, the person who hired the employee and the person who would normally make the final decision. That overlap creates obvious fairness problems.

You do not need a big HR team to run a fair process, but you do need enough separation to show independent thinking. Sometimes that means bringing in a different manager. Sometimes it means one person investigates and another hears the appeal. Where the complaint is sensitive, external support may be sensible.

Examples of grievances that carry extra legal risk

Some workplace complaints need particular care because they can link to statutory rights. This is where a grievance can quickly become more than an internal people issue.

• Complaints about sex, race, disability, religion or belief, sexual orientation, age, gender reassignment, marriage and civil partnership, or pregnancy and maternity may raise discrimination issues.
• Complaints about protected disclosures may amount to whistleblowing concerns.
• Complaints about unpaid wages, holiday pay or notice may involve unlawful deduction or breach of contract issues.
• Complaints about workload, stress or unsafe conditions may engage health and safety duties.
• Complaints about bullying linked to a later resignation can feed into constructive dismissal arguments.

The main risk is not only the original complaint. It is also how the business behaves after the complaint is made. Poor treatment after a grievance, such as exclusion, demotion, hostile comments or rushed dismissal, can create a second and sometimes more serious problem.

Legal Issues To Check Before You Sign

Before you sign off on the outcome of a grievance, make sure the process, evidence and decision line up. A short written outcome drafted too early is one of the most common weak points in a grievance file.

1. Your contracts, handbook and grievance procedure

Start with your own documents. Check the employment contract, staff handbook, grievance policy and any related procedures on bullying, dignity at work, equal opportunities, whistleblowing, disciplinary action and sickness absence.

You need to know:

• whether the grievance procedure is contractual or non-contractual
• who should hear the grievance and who should hear an appeal
• whether there are set timescales
• what rights of accompaniment are described
• whether any parallel policies also apply

Before you rely on a verbal promise that “we always do it this way”, check the written terms and documents. If your managers do not follow your own process, that can undermine trust and create evidence problems later.

2. Whether the complaint triggers discrimination or whistleblowing risk

If the grievance refers to protected characteristics, harassment, reasonable adjustments, maternity issues, part time status, health and safety concerns or alleged wrongdoing, pause before treating it as a standard conflict complaint. These issues may change how urgent the response needs to be and who should handle it.

The question is not whether the employee has used precise legal language. The question is whether the facts alleged could fall into a protected category. Small businesses often miss this when they focus on tone, seniority or whether the manager “meant well”.

3. Whether you need an investigation and how far it should go

A fair grievance process usually involves a reasonable investigation. Reasonable does not always mean lengthy, but it does mean proportionate to the seriousness of the allegations.

Depending on the complaint, an investigation may include:

• interviewing the employee who raised the grievance
• meeting the manager or colleague complained about
• speaking to witnesses
• reviewing emails, messages, rotas, absence records, pay records or CCTV where appropriate
• checking prior complaints or previous management action for context

Before you sign, ask whether you have enough evidence to support the decision. If your conclusion is based mainly on assumptions about credibility, document why you reached that view and what material you considered.

4. Who should hear the grievance

The decision maker should be as impartial as possible. If the grievance is about the founder, the employee's direct manager should not usually be expected to dismiss it without scrutiny if they report to that founder and cannot act independently.

In practice, fairness may mean:

• using a different manager from the one complained about
• separating the investigator and the decision maker where possible
• appointing a different person again for the appeal
• considering outside support where no internal independence exists

5. The employee's right to be accompanied

Employees generally have the right to be accompanied at a grievance hearing by a trade union representative or a fellow worker. That right should be taken seriously. Refusing it without a lawful reason can create separate problems and can also make the whole process look unfair.

Make sure invitations to formal meetings explain the purpose of the meeting, who will attend and the right to accompaniment where it applies.

6. Confidentiality and data handling

You should protect confidentiality as far as possible, but do not promise absolute secrecy. A grievance often requires you to speak to witnesses or disclose the substance of allegations so that a fair response can be made.

Keep records limited to those who need them. Notes, witness statements and outcome letters may contain personal data, special category data or allegations about conduct. Store them carefully and think about how long they should be retained under your data protection and record-keeping practices.

7. Whether other processes should pause or continue

A grievance can arise during sickness absence, redundancy consultation, disciplinary action or performance management. There is no automatic rule that every other process must stop. The right answer depends on the facts.

Before you sign or continue a separate process, ask:

• is the grievance directly about the fairness of that process
• could the same witnesses or documents affect both matters
• would continuing create a real risk of retaliation arguments
• can part of one process continue while another issue is investigated

This is where businesses often get caught by moving too fast. A decision that was lawful in principle can still look unsafe if the grievance was ignored.

8. The written outcome and appeal

Your outcome letter should explain what was considered, what findings were made and what happens next. It does not need to reveal every confidential HR detail, especially if action is taken against another employee, but it should give enough information for the employee to understand the result.

Include:

• the issues raised
• the investigation steps taken
• your findings on each key issue
• any action the business will take, where appropriate
• the right to appeal, who to appeal to and the deadline

Before you sign, read the draft outcome as if it were an exhibit in a Tribunal bundle. If the reasoning is thin, defensive or inconsistent with the evidence, revise it.

Common Mistakes With Raising a Grievance

The biggest mistakes happen when employers treat a grievance as an annoyance to close down rather than a process to handle fairly. That usually shows up in emails, rushed meetings and weak record keeping.

Ignoring an early complaint because it seems informal

Not every workplace issue needs a formal process straight away, but serious complaints should not be brushed off because they started in a casual conversation. If the employee is alleging bullying, discrimination, underpayment or serious unfairness, take a note and confirm how the issue will be handled.

Letting the accused manager run the process

A manager who is directly criticised should not usually investigate and decide their own grievance case. Even if they believe they can be objective, the process may still look unfair. That is especially risky before you sign an outcome rejecting the complaint in full.

Failing to investigate enough

Some employers decide there is “no evidence” without speaking to obvious witnesses or checking documents already in the business's possession. That is rarely persuasive. A reasonable investigation does not need perfection, but it does need effort and structure.

Turning the grievance into a disciplinary shortcut

Sometimes the employee who raises a grievance is awkward, underperforming or already in conflict with management. That does not justify treating the grievance as proof that they are the problem. A grievance and a disciplinary issue are different processes, even if they overlap.

Before you classify the complaint as misconduct, stop and check whether the employee is actually asserting a workplace right.

Using defensive language in writing

Emails saying the employee is “making trouble”, “playing the discrimination card” or “being difficult again” can be extremely damaging. Internal messages are often disclosed later. Managers should assume that notes, Slack messages and emails may be read by others in due course.

Missing retaliation risk

Once a grievance is raised, later decisions about shifts, pay, bonus, promotion, probation, dismissal or references can attract extra scrutiny. If the business takes action soon after the complaint, you should be able to explain the timing and evidence clearly.

This does not mean the employee becomes untouchable. It means the business must be especially careful that decisions are genuine, documented and unrelated to the grievance unless that connection is properly addressed.

Not offering an appeal

An appeal is not just an admin step. It is part of the fairness of the process. In some cases, a well-run appeal can correct flaws in the first decision and reduce later risk.

Assuming a settlement conversation solves everything

Without proper documentation, an informal deal or “let's move on” conversation may not settle legal issues at all. If the relationship is breaking down and you are considering an agreed exit, the legal structure needs to be handled properly and separately from the grievance process.

Practical steps for founders and managers

When a grievance lands in a small business, a simple internal plan helps keep the process calm and consistent.

1. Acknowledge the complaint promptly and confirm whether it will be treated formally.
2. Check the relevant contract and policy documents before replying in detail.
3. Appoint the right person to investigate or hear the matter.
4. Preserve relevant emails, messages and records.
5. Invite the employee to a meeting and explain any right to be accompanied.
6. Carry out a proportionate investigation.
7. Give a clear written decision and offer an appeal.
8. Monitor the workplace afterwards for retaliation, team friction or further issues.

FAQs

Do employers have to treat every complaint as a formal grievance?

No. Some issues can be handled informally at first. But if the complaint is serious, repeated, or the employee clearly wants formal action, the business should move to a proper grievance process.

Can we continue a disciplinary process if the employee raises a grievance?

Sometimes, yes. It depends on whether the grievance is connected to the disciplinary issues and whether continuing would make the process unfair. You may need to pause part of the disciplinary process while key grievance points are investigated.

Does an employee need to put the grievance in writing?

Written grievances are easier to manage, but an oral complaint can still require a formal response. If the issue is raised verbally, confirm your understanding in writing and ask the employee to add anything missing.

What if the grievance is about the founder or owner?

The business should look for as much independence as possible. That may mean another senior person handles it, or outside support is used where there is no realistic internal separation.

Can we keep the grievance completely confidential?

Usually not completely. You should keep it as confidential as reasonably possible, but a fair investigation often requires limited disclosure to witnesses or the person complained about.

Key Takeaways

• Raising a grievance is a formal workplace risk point for employers, not just an internal disagreement to smooth over.
• Check your employment contracts, handbook and grievance procedure before you sign off on any response.
• Look closely at whether the complaint could involve discrimination, whistleblowing, pay, health and safety or breach of contract issues.
• Use an impartial decision maker where possible, investigate fairly and keep clear written records.
• Hold a proper grievance meeting, respect accompaniment rights and give a reasoned written outcome with an appeal route.
• Avoid retaliation, defensive messaging and rushed decisions, especially where another process such as disciplinary action is already under way.
• Small businesses can run a fair grievance process, but founder involvement and limited management layers often make early legal guidance worthwhile.

If you want help with grievance procedures, employment contract terms, workplace investigations, contract review, and outcome letters, you can reach us on 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.