Every business hits this moment eventually. An employee knocks on your door, or sends that carefully worded email, and suddenly you’re dealing with a grievance. Your stomach drops a little. What do you say? What are you legally required to do? And how do you stop a small complaint turning into a tribunal claim?
Here’s the good news. Most grievances never need to reach a formal stage. Handled early and handled well, the majority get resolved with a conversation, a bit of listening, and some common sense. This guide walks you through exactly how to do that, and where to get grievance support if things get complicated.
A grievance is any concern, problem or complaint an employee raises about their work, their treatment, or the people around them. Common examples include:
The tricky part? Employees rarely announce “I am raising a grievance” in neat legal language. It might be a throwaway comment in a one-to-one. A frustrated email. A pattern of sick days. If someone tells you about a problem at work, treat it as a potential grievance, whatever they call it.
Think of a grievance like a small leak in your roof. Catch it early and it’s a ten-minute fix with some sealant. Ignore it and six months later you’re replacing the ceiling, the carpet, and possibly the sofa.
Workplace complaints behave in the same way. A concern can be resolved with one honest conversation but if left alone, it can grow into:
That last point is worth repeating. Tribunals look closely at how you handle things. Getting the process right is not just good practice; it’s financial self-protection.
The best grievance support starts before a grievance ever lands on your desk. Watch for the early signals:
None of this proves there’s a problem. But together they’re your cue to check in. A simple “how are things going?” over a coffee costs you nothing and can uncover issues while they’re still small.
Acas is clear that most workplace issues should be tackled informally at first, and for good reason. It’s faster, less stressful for everyone, and preserves working relationships.
Employees only raise concerns early if they trust they’ll be heard. That means:
If your culture makes raising a grievance feel like career suicide, problems will simply go underground until they explode. Our article on creating a respectful workplace free from bullying and harassment digs deeper into building that kind of environment.
When someone comes to you with a concern:
A word of caution: informal never means dismissive. “I’m sure it’ll blow over” is not grievance handling. It’s how grievances escalate.
For conflicts between colleagues, mediation can work wonders. An impartial third party helps both sides talk it through and find a way forward. It can be used at any stage, but it’s most powerful early on.
Some issues shouldn’t stay informal, even if the employee is willing. Move to your formal grievance procedure when:
If in doubt, treat it formally. A consistent, documented approach is far easier to defend later.
Once an employee has formally raised a grievance, the Acas Code of Practice becomes your roadmap. Here’s what a fair process looks like.
Confirm receipt in writing, explain the next steps, and give a realistic timescale. Delay is one of the biggest triggers for escalation, so don’t sit on it.
Invite the employee in writing and remind them of their statutory right to be accompanied by a colleague or trade union representative. In the meeting, let them explain their complaint fully and say what resolution they’re looking for. Keep an open mind. You’re there to understand, not to defend.
Gather all the facts. That might mean speaking to witnesses, reviewing emails, or checking records. The person investigating should be impartial; if the grievance is about the only manager in a small business, that’s a strong signal to bring in outside grievance support.
Tell the employee your decision, the reasons behind it, any actions you’ll take, and their right to appeal. Put all of this in writing.
If the employee disagrees with the outcome, they can appeal. Where possible, the appeal should be heard by someone more senior who wasn’t involved in the grievance or investigation. In a very small business that’s genuinely difficult, which is why external HR support makes sense.
We’ve written a more detailed breakdown of the Acas framework in our guide to disciplinary and grievance procedures under Acas guidelines, which supports this article.
We see the same handful of errors again and again:
Don’t wait for a grievance to discover that your policies and procedures are not compliant. Every employer should have:
If you’re not sure what you currently have, our article on what HR policies a small business legally needs in the UK is a sensible place to start.
Some situations justify outside help from day one:
This is exactly what we do at Centric HR. Our employee relations specialists conduct impartial investigations, chair grievance meetings, handle appeals, and coach your managers through the whole process. Whether you choose pay as you go support for a one-off issue or ongoing retainer cover, you’ll receive experienced, CIPD-qualified support without the cost of an in-house HR team. That’s especially valuable for small businesses and startups facing their first formal grievance.
Grievances are normal. Escalation isn’t inevitable. Spot the warning signs early, encourage informal conversations, and take every concern seriously. When a formal grievance procedure is needed, follow the Acas Code: acknowledge quickly, investigate impartially, meet fairly offering representation, decide in writing, and offer an appeal. Keep records at every stage and bring in professional grievance support when impartiality or complexity demands it.
If you’d rather not face your next grievance alone, book a free HR health check with Centric HR or call us on 03333 660 567.
There’s no fixed legal deadline, but your policy may have one. The Acas Code says grievances should be dealt with without unreasonable delay. Acas guidance suggests holding the grievance meeting within five working days of receiving the complaint where possible. Slow responses are a common trigger for escalation and can count against you at tribunal.
Yes. While informal resolutions are encouraged, employees have the right to raise a formal grievance at any time. If they put their complaint in writing, you should follow your formal grievance procedure, even if you feel the issue could be dealt with informally.
The Code isn’t legislation, but employment tribunals take it very seriously. If an employee wins a claim and you unreasonably failed to follow the Acas Code, compensation payments can be increased by up to 25%. Poor grievance handling can also lead to constructive dismissal and discrimination claims.
Ideally someone impartial who isn’t named in the complaint and has no conflict of interest. In a small business where the owner is the only manager, or is the subject of a grievance, that’s often impossible internally. Bringing in an external HR consultant protects both the employee’s right to fairness and your position if the matter is challenged later.
Yes, and this catches many employers out. The tribunal time limit, usually three months, less one day from the incident, keeps running even while your grievance procedure is underway. That’s another reason to deal with grievances promptly rather than letting them drift.
