Grievance and dispute procedures

Navigating disputes and grievances in the workplace can be complex. A well-structured grievance procedure ensures a fair, compliant and constructive resolution process when employees raise concerns about their work, working conditions or colleague relationships. For UK employers, understanding and implementing robust grievance procedures isn’t just about maintaining harmony, it’s often a legal requirement.

This template provides UK businesses with an example procedure to handle employee grievances, whether informal or formal. If you’re looking for more than one template, talk to our business specialists today to see how you can access customisable templates within the Employment Hero platform.

What is a grievance procedure

Grievance procedures are formal processes that allow employees to raise concerns about their work or workplace. They are a vital tool for resolving various employment-related issues amicably and in line with UK law. 

Key elements of a grievance procedure 

• Common causes: Grievances can arise from workplace relationships, working conditions, pay disputes, or disciplinary actions. 
• Legal requirement: Employers are obligated to provide a formal process to address complaints, particularly those affecting the fairness or safety of the workplace. 
• Reference to ACAS guidance: The ACAS Code of Practice serves as the benchmark for handling formal grievances, ensuring legality and fairness throughout the process. 

By establishing a detailed grievance procedure, businesses can foster transparency, encourage open communication, and reduce the risk of legal disputes. 

The difference between grievances and disputes 

Grievances and disputes are often used interchangeably, but they describe different workplace scenarios. Understanding these terms can help businesses manage each situation effectively.

Grievance	Dispute
An individual concern or complaint raised formally by an employee. Example: An employee files a grievance about feeling unfairly treated by their manager.	A broader conflict or disagreement, often involving groups or multiple employees. Example: A disagreement between management and employees regarding new workplace policies.

By clearly defining these terms and their unique processes, employers can ensure the right approaches are applied to resolve issues swiftly and fairly. 

Informal vs formal grievance procedures 

Handling grievances requires a flexible approach. Employers must decide whether to address the issue informally or follow a formal grievance route. 

Resolving issues informally 

The purpose of this informal resolution stage is to efficiently address minor grievances without the need for formal escalation. This is achieved through open and supportive discussions between the employee and their manager, aiming for quick agreements to resolve simpler complaints. The benefits of this approach include preserving working relationships and saving time and resources compared to engaging in a formal process.

When to use a formal grievance procedure 

Some concerns, particularly those involving legal, safety, or fairness issues, require a formal grievance process. Examples include allegations of workplace harassment or complaints about unlawful practices. Formal procedures provide the structure needed to conduct thorough investigations. 

Ensuring fairness and documentation 

Employers must prioritise impartiality and clear documentation at every stage of the grievance process. Doing so helps to manage legal compliance and builds confidence in the procedure’s effectiveness. 

Step-by-step grievance procedure 

An effective grievance process includes several key stages to ensure fairness and compliance with UK laws. 

1. Acknowledging a grievance 

• Employees should submit their grievances in writing, providing a detailed account of the issue and individuals involved. 
• Employers must respond quickly, typically within five working days, to confirm receipt and outline the next steps. 

2. Investigating the complaint 

• Conduct an impartial investigation to gather evidence, review records, and interview relevant parties. 
• Maintain confidentiality, sharing information only with those directly involved in the resolution process. 
• In some cases, an employee may be suspended on full pay or given adjusted duties while the investigation takes place. This should not be seen as a form of disciplinary action and should only last as long as necessary.

3. Grievance meeting process 

• Arrange a meeting to discuss the issue in detail. 
• Give the employee an opportunity to explain their perspective and present any supporting evidence. 
• Allow the employee to bring a colleague or union representative for support. 

4. Communicating the outcome 

• Employers must deliver a written decision, including reasons for the outcome and any actions to be taken. 
• Clear communication ensures employees understand the steps being implemented to resolve the matter. 

5. Appeal process for the employee 

• Employees dissatisfied with the outcome are entitled to appeal. 
• Appeals should be reviewed by senior leaders not previously involved to maintain impartiality. 

Legal obligations for UK employers 

Employers in the UK are legally required to follow fair grievance processes. Failure to comply can lead to employee claims and reputational damage. 

Compliance with the ACAS Code of Practice 

Following the ACAS Code ensures employers meet their legal responsibilities when handling grievances. While not legally binding, tribunals will consider adherence to these standards when determining liability. 

Time limits for responding to grievances 

Employers must handle grievances promptly to demonstrate fairness. Typical timeframes include responding to complaints within five working days and resolving issues as soon as possible thereafter.

Protecting employees from unfair treatment 

Employees raising grievances in good faith must be protected from retaliation or victimisation. Employers failing to safeguard employees could face legal consequences. 

Right to representation 

Employees are entitled to bring a colleague or trade union representative to formal grievance meetings and appeals. Ensuring this right demonstrates the employer’s commitment to fairness. 

Managing workplace disputes effectively 

Broader disputes within the workplace often require conflict management strategies to de-escalate tensions and reach resolutions. 

Early intervention and mediation 

• Act quickly to address signs of conflict before tensions escalate. 
• Use skilled mediators to facilitate discussions and help all parties agree on a way forward. 

Communication and impartiality 

• Maintain transparency at every step by clearly explaining the dispute resolution process. 
• Use impartial third parties to ensure fairness. 

When to escalate 

If disputes remain unresolved, employers may need to escalate them to formal grievance or external legal processes, depending on the severity of the issue. 

How Employment Hero supports grievance procedures 

Employment Hero simplifies the complexities of grievance and dispute management for UK employers through: 

• Customisable digital templates. In-platform, pre-prepared grievance policy templates ensure your workplace policies are always compliant with UK laws. 
• Real-time legislative updates.  Employment Hero’s compliance features adapt your policies to reflect the latest changes. 
• Efficient documentation. Streamlined systems for record-keeping ensure every step of the process is documented, reducing the risk of disputes. 
• Employment advice from experts. Certain plans have access to our HR Advisory team for guidance on complex or sensitive disputes. 
• Automation tools. Set reminders for policy reviews so your grievance procedures align with updated compliance requirements. 

Employment Hero helps employers to establish employee trust through transparency and saves time with pre-built solutions tailored for UK businesses, book a demo today. 

Download the free grievance policy and procedures template

Grievance procedures are more than a legal obligation, they are a key component of building a respectful and harmonious workplace.

The information in this article is current as at 14 August 2025, and has been prepared by Employment Hero UK Ltd and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.