From time-to-time employees will be unhappy about various issues relating to their work. When an employee raises a complaint, it’s essential that employers recognise them and know how to handle them.

This is particularly important as employers face increased compensation being awarded against them at Tribunal if they fail to deal with a grievance in accordance with the Acas Code of Practice on Disciplinary and Grievance Procedures (the Acas Code).

But what should employers do when presented with a grievance, what are the possible outcomes, and what legal risks must you be alert to?

First, what is a grievance?

The Acas Code describes grievances as “concerns, problems or complaints that employees raise with their employers”.

This could cover a wide range of issues, and whilst the Acas Code states that formal grievances should always be made in writing, employees could raise complaints in a number of different ways.

Importantly, employers should take care to ensure that they understand whether an employee is intending to raise an informal complaint or a formal grievance.

Where an employee states that they only want a matter dealing with informally, the employer should ensure there is evidence in writing of this.

How to deal with a formal grievance

Where an employee has raised a grievance in writing or confirmed that they want their complaint heard formally as a grievance, the employer must invite them to a formal grievance hearing. This should be done without unreasonable delay and usually within five working days of receiving the grievance.

Careful consideration should be given to who will hear the grievance. The person should be impartial and ideally have no previous involvement in the matter. Employers may want to ensure that the manager has had prior training on how to manage a grievance and that they have the capacity to carry out a proper investigation. In deciding who should hear the grievance, an employer should also ensure that this would leave someone appropriate to hear any appeal.

The employee has the statutory right to be accompanied at any grievance hearing by a work colleague or trade union official and employers can agree to allow another companion but should be careful not to do this as a blanket policy.

Companions should be allowed to participate as fully as possible in the hearing but should not answer questions on the worker’s behalf, address the hearing contrary to the worker’s wishes or act in a way which prevents the employer making its case or prevents another person making a contribution to it.

Employers may find it useful to give the employee and their companion a guide setting out the role of the companion prior to the meeting.

Following the formal meeting, the manager should investigate the matters raised, which may include the need to question witnesses. The investigation should be carried out in a proportionate and sensitive manner without unreasonable delay.

Following the investigation, it may be necessary to reconvene the grievance hearing to ask further questions of the employee. Once the manager has had opportunity to ask all questions of the employee and relevant witnesses, they should be in a position to reach a decision.

Deciding on the outcome of a grievance

The manager should ensure that each point of a grievance is considered, and an outcome given. If any part of the grievance is upheld, consideration should be given to how to resolve that issue.

This could be through workplace mediation, compromising on the change the employee seeks with the employer, or formal disciplinary action where the complaint relates to another employee’s behaviour.

Appeals

Employees must be given the right to appeal the decision and a formal meeting should be held, with a new manager, to hear the appeal. The employer can set a deadline for submission of the appeal but should also be flexible if an employee submits an appeal outside of that timeframe.

The manager hearing the appeal may need to do further investigation before reaching a decision. The decision should then be communicated in writing; it should be explained that the decision is final with no further right to appeal (unless the employer’s policy allows for another appeal).

The risks of getting it wrong

Employers who fail to deal with a grievance in accordance with the Acas Code risk a 25% increase to any compensation awarded by an Employment Tribunal.

What’s more, employers who don’t handle grievance correctly also risk claims of constructive unfair dismissal, discrimination and victimisation, whistleblowing and breach of contract claims.

It’s therefore vital that employers train their staff to recognise and deal with grievances appropriately.

How can we help?

Esphr’s support makes grievances much easier to manage and minimises the risk of costly mistakes.

Our employment law experts are here to help you navigate every stage of the process (and any difficult issues that might arise) and can provide you with any factsheets or template documents you and your team might need along the way.