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What is a Grievances Policy and Why Do I Need One?

As an employer in a small business owner, you likely deal with internal issues with staff regularly. Having a grievances policy in place can help you deal effectively with these issues. By using a grievances policy, you can ensure that there are fair processes to deal with staff concerns and procedures for collecting and noting where the same grievances keep arising.

This article will set out:

  • what a workplace grievance is;
  • the reasons for having a grievances policy;
  • what your policy should include; and
  • a case study of how it works in practice.
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What is a Workplace Grievance?

A workplace grievance is an employee’s concern, problem or complaint about their workplace, colleagues or manager. 

Some common examples of staff grievances are concerning:

  • workload, such as setting unrealistic expectations on an employee or increasing an employee’s workload instead of hiring a new employee;
  • working conditions, such as health and safety hazards in the workplace or uncleanliness in common areas of the workplace;
  • compensation, such as discrepancies between wages of staff in similar roles or withholding benefits;
  • bullying, such as spreading malicious rumours about someone or deliberately excluding someone from work events;
  • harassment, such as aggressive or intimidating conduct or practical jokes that are offensive or inappropriate; and
  • discrimination, such as mistreating someone because of a protected attribute or having a workplace policy that indirectly discriminates against people with a protected attribute.

Why Have a Grievances Policy?

The two key reasons to set up a grievances policy are:

  • staff management; and
  • legal risk reduction.

1. Staff Management

It is essential that staff feel that their grievances are taken seriously. Therefore, by using a grievances policy, you can ensure that there are fair processes to deal with staff concerns and procedures for collecting and noting where the same grievances keep arising.

A grievances policy may foster a positive culture in your business by promoting effective communication, openness and trust. Staff will feel that they are listened to, and it may even prevent them from quitting as they know you are committed to resolving their concerns or complaints.

2. Legal Risk Reduction 

Complaints in the workplace do not exist in a bubble. Accordingly, there could be legal consequences accompanying a complaint. Hence, you should always consider the reason for an employee’s complaint. 

For example, is the employee experiencing bullying, discrimination or workplace harassment? If so, they may later make official bullying, discrimination or harassment claim. Perhaps the employee is complaining because they disagree with a process of performance management or termination? If so, they may later make an unfair dismissal or general protections claim.

With each type of complaint, it is essential to demonstrate that, as an employer, you have:

  • taken the appropriate steps to address the problematic conditions; and
  • protected the employee where possible.
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What Should You Include in Your Grievances Policy?

Your grievances policy should address five critical matters.

1. Purpose

Firstly, set out the purpose of the policy at the beginning. Make it clear that it is a process which should be flexible to each situation; you do not want to be stuck using a constrictive policy if there are other issues at play.

2. Definition

Secondly, you should define a ‘grievance’ and how it relates to the policy. For example, you may describe a grievance as an employee’s concern about their workplace, colleagues or manager.

3. Confidentiality 

To ensure that your staff members feel comfortable and safe in airing their grievances, it may be helpful to ensure confidentiality.

You should be clear that the degree of confidentiality may vary depending on the exact nature of the complaint and the investigation process.

For example, you may need to bring up the complaint to other staff members to get their view on precisely what happened. In extreme cases, you may need to bring the complaint to a third party. Your policy should describe how such complaints will be treated.

4. Grievance Process

Your policy should identify the different options for resolving complaints and the overarching principles of procedural fairness. These will depend on the nature of the complaint and the person complaining. Some options you could use are discussed in the table below.

ProcessExplanation
Direct ResolutionThe first step is to get the parties together to discuss the issue directly. Your policy should define this step and how it can be carried out.
For example, does the employee first need to raise the issue with the person involved and give them a chance to resolve the problem? Is a formal procedure in place that must be followed in this circumstance? 
Discussion with SupervisorIn some situations, it is not practical or wise to raise the complaint with the person causing the issue. In your policy, you should indicate the circumstances where it is appropriate to raise the complaint with their direct manager first. It is also helpful to provide an alternate person to whom employees can complain, mainly if the complaint involves their direct manager.
The policy should set out the types of follow-up action that may be taken, so the employee knows what to expect. This could include investigating the complaint, meeting with the relevant parties and suspending the person against whom the complaint is made.
ResolutionAdditionally, your policy should set out the types of conflict resolutions that may be appropriate. This also allows employees to be aware of what to expect and some of the potential outcomes.
Some resolutions could include receiving an apology, counselling or suspension or termination. Other resolutions include additional training, involving the police or authorities or finding that the complaint is not substantiated.  

5. Unsubstantiated Complaints

Finally, sometimes after an investigation, you may find:

  • that the action complained of did not take place and that the employee’s complaint was for another reason (such as dislike); or
  • there was not sufficient evidence to take any action against the other employee.

Case Study: Grievances Policy in Action

Paul is a personal assistant working in a tech company. A new colleague, Mark, starts at his workplace. Mark makes additional demands on Paul, like asking for his dry cleaning. Mark is condescending and rude to Paul.

Accordingly, Paul decides to look over his business’ grievances policy to check the most appropriate way to complain about Mark.

As Paul does not know Mark well and is unsure how he will react, he speaks to his manager Sophie first. However, Sophie feels that Paul is overreacting and should “get over it”.

Since Paul is unhappy with that response, he decides to discuss the issue with his team leader Grace. After checking that Paul is happy for the complaint to be discussed with the others involved, Grace investigates the situation. She finds that the actions Paul is complaining about have taken place.

Grace and Sophie disagree with Paul’s recommendation for Mark’s termination. Grace and Sophie disagree with this action. If his behaviour continues, his employment may be terminated. 

Key Takeaways

Ultimately, a grievances policy helps protect your business and is a valuable tool in managing your staff. In addition, it can help promote a healthy and fair workplace and provide guidance to employees and employers alike.

If you have questions about your business grievance policy, our experienced employment lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions

What is a workplace grievance?

A workplace grievance is an employee’s concern, problem or complaint about their workplace, colleagues or manager.

What are the critical reasons for having a grievances policy?

Staff management and legal risk reduction are two key reasons to set up a grievances policy.

What should I include in my grievances policy?

Your grievances policy should address five critical matters: purpose, definition, confidentiality, grievance process and unfounded complaints.

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Millie Doran

Millie Doran

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