Grievance Procedures

All employers should have a written grievance procedure to enable their staff to raise any concerns or complaints they may have. In addition to being simple common sense this is also a statutory obligation under the Employment Rights Act 1996, which states that the employer must provide the employee with a written statement of the terms of their employment (see link & PAYG) which (amongst other matters) must specify a person to whom the employee can apply for the purpose of seeking redress of any grievance relating to his employment. The statement must also contain details of the manner in which such a grievance should be made.



The case law has long indicated that employers must deal with any grievance both promptly and seriously. A failure to do this will entitle an aggrieved employee to resign and claim constructive dismissal against the employer. There are potential discrimination claims that may arise when an employer fails or refuses to deal with some grievances promptly or seriously. This may occur if an aggrieved female employee can show that the employer would have treated a comparable grievance seriously or promptly if raised by a male colleague. The same principle would apply in respect to other potential discrimination claims over say race or disability. This type of mistake can be very costly to an employer both in financial terms and in the loss of staff morale.



The lesson is clear, that employers must deal with grievances promptly, seriously, and consistently.



Between October 2004 and April 2009 there were further considerations to take into account regarding grievances. The statutory grievance procedures were introduced, which required employees to follow an internal grievance before being able to pursue their claims in the tribunal. On the other hand, if the employer failed to follow the requirements of the statutory procedure it could face an increase in the compensation awarded by the tribunal of between 10% to 50% if the employee succeeded in the claim at the tribunal.



For the purposes of the statutory grievance procedure, practically any type of complaint  amounted to a grievance. Under the statutory grievance procedure the employer was obliged to arrange a meeting to deal with the grievance, and if necessary, provide an opportunity for the employee to appeal against the initial decision. Even former employees were entitled to their grievance being considered by the employer. As may already seem clear, this is a prescribed process, and if the employer failed to follow it properly it could be penalised heavily. So, employers had to ensure that in dealing with any grievance that arose before the 6th April 2009 they used the statutory grievance procedures in addressing the employee's concerns.



The statutory grievance procedure was repealed on the 6th April 2009, so does not apply to any grievance that commenced on or after that date. However, employers must ensure their managers are properly trained to deal with grievance proceedings, and have and use proper and appropriate grievance procedures (see PAYG grievance procedures).It is self-evident that employers not only need to have relevant grievance procedures, but also need to ensure that those procedures are followed properly.



The Statutory grievance procedure has been replaced by the provisions of a new ACAS Code of Practice covering grievances.



The new Code sets out rather more demanding requirements from an individual that wishes to pursue a grievance than apply in the Statutory grievance procedure. Unlike the Statutory grievance procedure, under the new Code, an individual will be required to submit a formal grievance in writing, stating the grounds of the grievance. Any grievance should be submitted without unreasonable delay. As before, employers will then be required to meet the individual to deal with the grievance. The new Code also provides for an appeal in the event that the individual is unhappy with the outcome of the first hearing of the grievance.



Non-compliance with the new requirements for grievances will NOT automatically prevent the individual from pursuing a claim in an Employment Tribunal in relation to the subject of that grievance (which had been the case under the Statutory grievance procedure). In addition, non-compliance can result in the Employment Tribunal increasing (or decreasing) any award of compensation by up to 25%. Therefore it is crucial that employers familiarise themselves with the new Code, and ensure that all relevant managers are properly trained to handle a grievance.