News & Insights

Dealing with employee grievances properly can require a great deal of time and effort, but a prompt investigation could uncover inappropriate behaviour or poor management. If this can be nipped in the bud, you may avoid bigger problems down the line and avoid reputational risk for the organisation.

Employers must comply with the Acas Code of Practice on Disciplinary and Grievance Procedures (the Code), which sets out the basic steps and principles for dealing with a grievance.

‘While this encourages employers to ‘have a quiet word’ or to use mediation where appropriate, investing time and resources in dealing with a grievance can pay off in the longer term,’ explains Alana Penkethman, employment expert Laceys Solicitors. An informal approach could backfire as the employee may feel their concerns have not been taken seriously and this in itself could be an act of discrimination.’

Alana sets out why employers should take grievances seriously from the outset and explains how employers can take a proportionate approach, as well as highlighting the legal protection given to some employees who raise a grievance.

When is a grumble a grievance?

Generally, any complaint raised as a grievance should be treated as a grievance. In rare cases, it may be legitimate to dismiss a grievance if it is vexatious or made in bad faith, but please speak to us first. Likewise, if the grievance seems like a minor grumble that could be resolved informally, employers should try this initially. However, in most cases, a thorough investigation will be required, regardless of the reasoning for the grievance or apparent severity.

Additional care should be taken if there is an allegation of discrimination or harassment. How the employee perceives the behaviour is an important factor in considering if conduct is harassment or not. Conduct that may be banter to one, may be bullying to another, and may amount to discrimination in an employment tribunal. Employers should err on the side of caution, looking into the grievance and hearing how the employee has been affected. Care should also be taken if the employee is raising an issue that could give them protection as a whistle-blower. We can advise you on how to respond.

In some circumstances, if an employee keeps reporting an issue, it can be sensible to suggest the employee brings a formal grievance, simply to allow the matter to be addressed properly. In such circumstances, instigating the grievance procedure on the employee’s behalf can help conclude a dispute. Once the grievance procedure has been exhausted, it will usually be reasonable to tell the employee that the issue is closed, allowing all parties to move on.

What are the risks of not looking into a grievance?

If a grievance is ignored, or not given due consideration, this can give the employee the option to resign and claim constructive dismissal. In most cases, the employee needs two years’ service before they can bring such a claim. Depending on the background, employees may also be able to argue that the failure to deal with a grievance properly is discriminatory or is a detriment for blowing the whistle.

Employers who do not follow the steps and principles set out in the Acas Code, risk the tribunal increasing the employee’s award by up to 25 per cent. This applies to claims such as discrimination, disputes over pay and detriment as a whistle-blower.

How far do we have to investigate?

This will always be a balancing act. On the one hand, employers should deal with grievances promptly, to comply with the Code, and to ensure the fair treatment of the employee and any colleagues named in the grievance. On the other hand, the investigation needs to be thorough enough so that the manager deciding on the grievance can reach an informed decision.

A desk-top investigation may be sufficient, for example into a pay error. In dealing with more complex allegations, such as of bullying and harassment, a reasonable investigation is likely to involve interviewing individuals. For example, if an employee alleges that an incidence of bullying was witnessed by a colleague, the colleague should be interviewed. However, it may be reasonable to limit the number of individuals who are interviewed, for example if an employee in a large team alleges that the team manager shouts in team meetings, it may not be necessary to interview the whole team.

What can we do if the grievance is unfounded?

Grievances can be very damaging to working relationships. Even when a grievance is resolved, the affected relationships may be irreparable. However, dismissals should be avoided, particularly if the employee alleged discrimination and is protected from victimisation. Sometimes, if all trust and confidence has been destroyed, it may be possible to fairly dismiss, but please speak to us first to help you navigate your way through this. Similarly, employers can take action if grievances have been brought in bad faith or are vexatious. Again, this needs careful consideration.

How we can help

Employee grievances will crop up from time to time and handling them effectively can really pay off. Dealing with these carefully, and the fall-out from grievances, can require careful management.

Sometimes employees bring a grievance to use as leverage in negotiations for an exit payment. Promptly and effectively dealing with the grievance can strengthen the employer’s bargaining position.

We are highly experienced in these areas and can support you in managing the risks. For further information, please contact one of our Employment team.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.