Handling grievances as an employer

Grievances must be handled with care, consistency, and legal awareness. A well-managed process not only helps resolve concerns early but also reduces the risk of disputes, resignations and legal claims later down the line.

In this blog, we explore key considerations for employers in handling grievances, including maintaining confidentiality, delivering clear outcomes, managing appeals, and navigating the grey area of post-resignation complaints. We also highlight the risks of getting it wrong.

What is a grievance?

An employee can lodge a grievance to formally raise a problem or complaint to their employer. This could include for example an issue about terms and conditions of employment, bullying and harassment, discrimination, workload, health and safety or organisational change.

Employees can raise a formal grievance whether or not they have raised the issue informally in the first place.

Once raised, employers must follow their own formal grievance procedure (or, in the absence of an internal procedure, the ACAS Code of Practice).

What happens if a grievance is raised?

When an employee raises a grievance, it’s essential for employers to respond promptly, professionally, and in line with their internal grievance procedure.

Under UK employment law, there is an implied contractual duty to provide employees with a reasonable opportunity to seek redress for workplace issues.   Failure to do so could amount to a breach of contract, and as such give rise to claims such as constructive dismissal.

In one case the Employment Appeal Tribunal held that unfairly rejecting a legitimate grievance—particularly one involving significant and serious allegations – can breach the implied term of mutual trust and confidence. This may give rise to claims of constructive dismissal, even if the grievance process was technically followed.

A failure to deal with a grievance promptly or to treat it seriously may itself amount to act of discrimination; and subjecting an employee to detrimental treatment because that have made a complaint about discrimination may amount to victimisation.

To manage grievances effectively, employers should:

• Follow a fair and consistent procedure for all cases
• Conduct a thorough and impartial investigation to establish the facts
• Allow the employee to be accompanied at grievance meetings by a colleague or trade union representative (the employee has a statutory right to be accompanied at a grievance hearing)
• Ensure all relevant parties are given a chance to present their views
• Communicate decisions and take appropriate action without undue delay
• Act consistently treating like cases alike
• Offer a clear route for the employee to appeal the outcome if they are dissatisfied

How do you maintain confidentiality?

As grievances usually involve sensitive and personal matters, confidentiality can be a critical aspect of the process. The ACAS Code of Practice emphasises that investigations and decision-making must be conducted fairly and rationally, which includes handling information discreetly and respectfully.

To protect confidentiality, employers should:

• Limit the number of individuals involved to only those necessary for a fair investigation.
• Avoid unnecessary disclosure of details to colleagues or third parties.
• Be transparent with the employee from the outset about who may need to be involved, helping to manage their expectations realistically.

While complete confidentiality may not always be possible—particularly where witness evidence is required—employers should take reasonable steps to safeguard personal information throughout.

Once the grievance is concluded, the outcome and related details should remain confidential. Where appropriate, it may be helpful to speak privately with any staff directly affected before returning to normal working arrangements.

How should you deliver outcomes and right to appeal?

Once a grievance has been investigated, it’s essential that employers communicate the outcome clearly, respectfully, and in writing.

To minimise risk and maintain good employee relations, employers should:

• Deliver outcomes in a timely and transparent manner
• Clearly explain the reasoning behind the decision
• Outline any actions being taken as a result
• Confirm the employee’s right to appeal and the process for doing so

A well-handled outcome not only closes the grievance process professionally but also reinforces trust and reduces the likelihood of further disputes.

Grievances after resignation – to respond or not to respond?

It’s not uncommon for employees to raise grievances at or shortly after the point of resignation.  Their employment may even have ended before the grievance is submitted.   There is no express requirement for an employer to hear a grievance from a former employee – but caselaw suggests that it would be ill-advised for such complaints to be dismissed outright.

Grievances in resignation letters

In the case of Shergold,  the Employment Appeal Tribunal confirmed that a resignation letter can amount to a grievance if it sets out a complaint in writing—regardless of whether the employee labels it clearly as a grievance or invokes the formal procedure.

Grievances after employment has ended

It is prudent for employers to at least acknowledge and consider post-termination grievances, especially where future litigation is anticipated.  Failure to follow the ACAS Code and to deal with the grievance may be relevant to the question of compensation.

In Ambotas, an employment tribunal treated a post-employment grievance as valid. Notably, the Claimant in this case had his award of compensation reduced due to failure to participate in the grievance process, showing that the expectations of the ACAS Code can be mutual.

So, what does this mean for employers?

• Treat post-resignation grievances seriously, especially if they relate to discrimination, harassment, or other serious issues.
• Consider responding in line with your grievance procedure, even if the employment relationship has ended.
• Acknowledge the complaint and, where appropriate, offer a written response or investigation even if not offering a full grievance procedure after the end of employment
• Seek legal advice if the grievance could lead to litigation or reputational risk.

Uplifts on awards

Employers who fail to follow a fair grievance process not only risk damaging employee relations—they may also face financial consequences at tribunal.

Tribunals have the power to increase (or reduce) compensation where they consider it just and equitable to do so, by up to 25% if either party unreasonably fails to comply with the ACAS Code of Practice.

Procedural errors—such as failing to investigate, neglecting to communicate outcomes, or denying the right to appeal—can lead to significant uplifts.

For example, in the case of Macken,  the employer was penalised for not properly handling a grievance in line with the ACAS Code, with the Claimant’s award increased by 20%.

Conversely, in the case of Thistle Marine (Peterhead) Ltd, no uplift was applied because the grievance was raised just three days before resignation, leaving insufficient time for the employer to respond.

Conclusion

Ignoring or mishandling grievances can carry serious legal and financial consequences, including tribunal uplifts and reputational damage. But when handled well, grievances can strengthen employee relations and reinforce your organisation’s commitment to respectful and lawful workplace practices.

BTO’s Employment Team is available to support you with any questions or concerns about your grievance procedures or current investigations. Get in touch with us here.