Grievances in the workplace are more common than you might think, and knowing how to handle employee grievances is a key responsibility for any small business. Whether it’s a conflict with a colleague, concerns about unfair treatment or something more serious, employees need to feel they have a safe, structured way to raise their concerns.
For small businesses in the UK, getting this right matters. This practical guide will walk you through the essentials, helping you approach grievances with confidence and care.
What is an Employee Grievance?
An employee grievance is a formal complaint raised by a member of staff. It could relate to almost anything they feel is affecting their ability to work, or making their working life unfair or unpleasant. This might include poor management decisions, unequal treatment, harassment or health and safety concerns.
While some concerns can be handled informally, others will need a more structured approach. The important thing is that staff know they’ll be taken seriously either way.
Why Knowing How to Handle Employee Grievances Matters
When teams are small, issues can feel more personal and if they’re not handled properly, they can quickly affect morale or even lead to legal trouble. A fair, consistent approach helps protect your people and your business.
Getting this right helps you build trust, reduce the risk of conflict escalating and stay on the right side of employment law. It also sends a strong message that your business genuinely values its people.
How to Handle Employee Grievances When Raised
First, make sure you’ve got a clear grievance policy in place. This should set out how employees can raise concerns, what they can expect from the process and how long it’s likely to take. Ideally, this lives in your staff handbook or employee policies. You can also refer to the official UK government guidance on handling employee grievances for a basic outline of the legal expectations.
If a concern is raised, it’s usually best to start with an informal conversation. Many issues can be resolved quickly just by listening and having an open chat. But if the issue is more serious, or if an informal approach doesn’t work, then you’ll need to follow a formal grievance process.
That starts with acknowledging the complaint and carrying out a fair investigation. You’ll need to gather the facts, speak to the people involved and keep notes of everything discussed. Timeliness matters here, so don’t let things drag out.
Next comes the grievance meeting. Invite the employee to talk through their concerns and allow them to bring a colleague or union rep for support. After the meeting, take time to review what’s been said and decide on a fair outcome. Then share your decision in writing, including any actions you’ll take and what the next steps are.
Finally, give the employee the chance to appeal. This should be handled by someone who wasn’t involved in the original investigation wherever possible.
What to Watch Out For
Many small businesses stumble on the basics. Common pitfalls include slow responses, poor record-keeping or not sticking to your own policy. These things can undermine employee trust and cause avoidable legal risk.
It’s also important not to ignore the wider impact on your team. Even when a grievance only involves two people, the ripple effect can reach others, so think about whether additional support or mediation might help.
Need Some Backup? MYHR Can Help
Grievances can be time-consuming and emotionally draining, but you don’t have to go it alone. At MYHR, we support small businesses across the UK with tailored help, whether that’s writing your grievance policy, advising on a specific case or stepping in to mediate where needed.
If you’d prefer expert support on your side, explore our Grievance services to see how we can help.