A small business should handle an employee grievance promptly, investigate fairly, hold a meeting, explain its decision in writing, and offer an appeal. Your team’s size doesn’t remove the need for a fair process.
A complaint can feel personal when everyone works closely together, but impartiality protects both sides. Start by identifying the right procedure and who can manage it without a conflict.
Choose the Right Grievance Procedure
Decide whether informal resolution is appropriate
Listen without dismissing the concern or promising an outcome. Ask what happened and what the employee wants to change. A straightforward misunderstanding may be suitable for an informal conversation, provided the employee is comfortable with that approach.
However, don’t pressure someone to resolve serious allegations informally. Complaints about discrimination, harassment, or significant management failures need careful assessment. If informal steps haven’t worked, or the employee wants a formal process, ask them to set out their grievance in writing.
Apply the correct national framework
For businesses in England, Scotland, and Wales, the Acas Code provides the framework for disciplinary and grievance procedures. Employment tribunals take the statutory Code into account where relevant.
Northern Ireland has a separate framework under the Labour Relations Agency Code. A business with employees across the UK needs procedures that reflect that distinction.
Also follow your written grievance policy consistently. Acknowledge the complaint, explain the next steps, and give a realistic timetable.
How to Handle an Employee Grievance Fairly
Put someone impartial in charge
The person complained about shouldn’t control the investigation or decide the complaint against themselves. Where possible, appoint a manager who hasn’t been involved.
This can be difficult when the grievance concerns the owner of a small business. An external investigator or adviser can help you manage that conflict. Our HR and employment law advice includes support with grievances and workplace investigations.
Make each person’s role clear before interviews begin. The investigator needs to establish facts without assuming either side is right.
Gather evidence without prejudging the outcome
Identify each allegation, then collect relevant evidence. Depending on the complaint, that could include emails, rotas, pay records, messages, or witness accounts. Preserve material before routine deletion removes it.
Speak to relevant people separately and ask open questions. Give anyone facing allegations a fair opportunity to respond. Record disputed facts rather than smoothing over differences between accounts.
Meanwhile, assess whether temporary working arrangements are needed to protect those involved. Avoid changes that punish the complainant or imply that someone has already been found responsible.
Arrange a Fair Grievance Meeting
Invite the employee in writing and allow reasonable preparation time. Explain the meeting’s purpose, who will attend, and the right to request a qualifying companion.
For qualifying grievance hearings, a reasonable request triggers the statutory right to accompaniment. Eligible companions include a fellow worker or qualifying trade union representative. The companion can present or sum up the employee’s case and confer with them, but cannot answer questions for them.
The Acas grievance guide explains the process and accompaniment rules.
During the meeting, let the employee explain their concerns and preferred resolution. Ask questions without turning the discussion into an argument. Consider disability-related adjustments where needed.
If new evidence emerges, adjourn and investigate it. Don’t force a decision simply because the meeting has ended.
Give a Reasoned Decision and Offer an Appeal
Explain what you decided and why
Write to the employee without unreasonable delay once you have enough information. Address each allegation and explain whether you uphold it, partly uphold it, or don’t uphold it. Link your conclusions to the evidence.
Then explain what action will follow. Depending on the findings, that might involve correcting pay, changing working arrangements, or providing management training.
If the evidence suggests misconduct, address that through a separate disciplinary process. The grievance outcome shouldn’t bypass another employee’s opportunity to answer allegations.
Make the appeal meaningful
Your outcome letter should explain how to appeal, who should receive it, and the deadline under your procedure. An appeal gives the employee an opportunity to challenge findings, identify procedural problems, or present new evidence.
Where possible, someone previously uninvolved should hear it. In a very small business, outside support may help provide that separation.
Consider the appeal grounds properly rather than repeating the original decision. Hold an appeal meeting, investigate further where necessary, and communicate the final outcome in writing.
Keep Records and Follow Through
Keep the written complaint, meeting notes, evidence, findings, decision letters, and appeal outcome together. Record why you reached each conclusion. Our grievance management guidance covers keeping case documentation organized.
Restrict access to people who need the information. Explain that confidentiality has limits because a fair investigation may require sharing allegations or evidence.
Finally, follow through on agreed actions and review whether they worked. Watch for retaliation, particularly after discrimination complaints. A grievance shouldn’t lead to exclusion, reduced opportunities, or other adverse treatment because someone raised a protected concern.
A Fair Process Protects Your Business
You can handle an employee grievance fairly without a large HR department. What matters is an impartial investigation, a genuine opportunity to be heard, and a decision supported by evidence.
Keep clear records and offer a meaningful appeal. Follow-through matters as much as the outcome letter, especially when everyone must continue working together.
Our unified employment solution helps you get grievances right from start to finish. Everything sits behind a single login:
HRoes also includes CPD-accredited training to help prevent issues in the first place, and up to £250k of tribunal cover* if a claim does land. All of this comes from £6 per person, per month.
Book your intro call to see how HRoes protects your business.
*For eligible legal costs and compensation when you follow our guidance, subject to policy terms and conditions.