MILS on Dealing With Grievances

Issue
Newsletter
Published
June 4, 2026

“I have an employee who has come to me complaining that his manager has been bullying him and treating him unfairly. He said he wants to put in a “formal grievance”. To be honest we are a fairly relaxed and we don’t have such procedures. What do I do next?” All employers, no matter how large or small should have a formal grievance procedure in place to deal properly with grievances at work. . A fair grievance investigation and procedure can often resolve issues before they become more serious. If you don’t have a formal grievance procedure in place, the following basic steps should be always be taken: · Write to the employee setting up a formal meeting to discuss his/her grievance giving him/her the right to be accompanied by a trade union representative or work colleague; · Hold that grievance meeting and listen to concerns / complaints; · Adjourn the meeting and go away and investigate and come to a conclusion on the grievance; · Set out the decision in writing, with a right of appeal; · If the employee appeals, make sure that a more senior who has not been involved so far conducts the same basic procedure as above, i.e. write to him/her setting up a meeting, give him/her the same right to be accompanied, hold the meeting, investigate and confirm the appeal decision in writing. It is, of course, often the case that an employee will not be satisfied with the employer’s decision on a grievance, especially if it is not upheld. As an employer, you have a duty to reasonably investigate and this might involve interviewing other staff, interviewing the employee in question and coming to conclusions on the balance of the evidence. A common trap that employers sometime fall into is to promise absolute confidentiality when dealing with grievances. That is of course not always possible, because to investigate the grievance, allegations often have to be put to other employees and statements taken. Employers can ask employees to keep discussions confidential to the meetings arranged, but cannot promise complete confidentiality of information, otherwise grievances cannot be thoroughly investigated. In Conclusion The Tribunal will consider the size and administrative resources of an employer are relevant to how fairly and thoroughly an employer deals with such matters. The larger and more sophisticated the employer, the greater the onus to be procedurally perfect. The smaller the employer, the more Tribunals are supposed to give a degree of leeway given the lesser administrative resources. If you simply ignore a grievance and an employee has over 2 years’ service, then this could form the basis of a constructive unfair dismissal claim and can lead to uplifts in compensation in Tribunals of up to 25%. A formal grievance procedure needn’t be too onerous. ACAS have example policies that employers can use and the ACAS publish a Code of Practice on grievances, which is referred to in Tribunals. You should certainly read the Code if ever you receive a formal grievance from an employee. Don’t forget, as an RMI member you have access to the RMI Legal advice line, as well as several industry experts for your assistance. This includes a suite of template documents for your use. These documents include example grievance policies that can be used by you. Should you find yourself in the situation above, contact us at any stage for advice and assistance as appropriate. Motor Industry Legal Services Motor Industry Legal Services provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only regulated law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members

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