Grievance Clauses in Employment Contracts
How grievance procedures should be documented. Understand the legal requirements and best practice for handling workplace complaints.
Employment contracts must reference the grievance procedure, though the detailed procedure is usually kept non-contractual.
Legal Requirements
Written Statement
The written statement of particulars must include:
- A person to whom the employee can apply if dissatisfied with a disciplinary decision
- A person to raise a grievance with
- Explanation of the subsequent steps
Or state where this information can be found.
ACAS Code
Employers must follow the ACAS Code of Practice. Key requirements:
- Let employees raise formal grievance in writing
- Hold meeting to discuss grievance
- Allow right to be accompanied
- Inform employee of decision in writing
- Provide right of appeal
Contract Clause Structure
Basic Reference (Recommended)
"If you have a grievance relating to your employment, you should raise it in accordance with the Company's grievance procedure, which is available in the Employee Handbook. This procedure does not form part of your contract."
Specifying Who to Contact
"In the first instance, grievances should be raised informally with your line manager. If the matter cannot be resolved informally, or relates to your line manager, you should raise a formal grievance in writing to [HR Manager / named person]."
Keeping Procedure Non-Contractual
Non-Contractual Statement
"The grievance procedure set out in the Employee Handbook is provided for guidance and does not form part of your contract of employment. The Company reserves the right to amend the procedure from time to time."
Why Non-Contractual?
| Benefit | Explanation |
|---|---|
| Flexibility | Can update without consent |
| Practicality | Avoid technical breach claims |
| Adaptation | Can adjust for different situations |
| Simplicity | Easier to manage |
Key Elements to Include
Who to Raise Grievance With
"Grievances should initially be raised with your line manager. If the grievance concerns your line manager, you should contact [HR / alternative manager]."
Informal Stage
"You are encouraged to try to resolve concerns informally in the first instance. If informal resolution is not possible or appropriate, you may raise a formal grievance."
Formal Process
"To raise a formal grievance, submit your concerns in writing to [name/position], setting out the nature of the grievance and the outcome you are seeking."
Timescales
"The Company will endeavour to acknowledge grievances within [5] working days and hold a grievance meeting within [10] working days."
Right to Appeal
"You have the right to appeal any grievance outcome. Appeals should be submitted in writing to [name/position] within [5] working days of receiving the grievance outcome."
Accompanying at Meetings
Right to Be Accompanied
"You have the right to be accompanied at any formal grievance meeting by a work colleague or trade union representative."
Companion's Role
The companion may:
- Address the meeting
- Respond on behalf of the employee
- Confer with the employee
- Sum up the employee's case
The companion cannot answer questions on behalf of the employee.
Common Issues
Collective Grievances
"Where a group of employees have a shared grievance, they may raise it collectively. The Company will determine the appropriate process for addressing collective concerns."
Overlapping Grievances
"If a grievance is raised during a disciplinary process, the Company will consider whether to pause the disciplinary process while the grievance is investigated, particularly where the grievance relates to the disciplinary matter."
Grievances from Former Employees
Consider whether to include:
"The Company may consider grievances from former employees at its discretion, particularly where the matter could not reasonably have been raised during employment."
Relationship to Other Claims
Constructive Dismissal
If grievance procedure is breached:
- May support constructive dismissal claim
- Especially if employer fails to address serious concerns
- Employee should usually raise grievance before resigning
Whistleblowing
"This grievance procedure is separate from the Company's whistleblowing policy. Concerns about illegality, danger, or wrongdoing should be raised under the whistleblowing policy."
Best Practice
For Employers
- Have clear written procedure
- Train managers to handle grievances
- Respond promptly to grievances
- Take concerns seriously
- Keep confidentiality where possible
- Document all stages
- Follow ACAS Code
- Learn from grievance patterns
Common Employer Mistakes
- Ignoring or delaying response to grievances
- Treating grievance as personal attack
- Not following own procedure
- Failing to investigate properly
- Not offering right of appeal
- Retaliating against employee for raising grievance
Related answers
Employment Contract Requirements UK
What must be included in a UK employment contract? Learn the legal requirements for written statements of particulars and what happens if you get it wrong.
Constructive Dismissal: What Employers Need to Know
Understanding constructive dismissal claims. What triggers them, how to avoid them, and what to do if an employee resigns claiming breach of contract.
Frequently Asked Questions
- Must employers have a grievance procedure?
- Yes. All employers must have a grievance procedure and inform employees about it. The procedure must follow the ACAS Code of Practice, which requires allowing employees to raise concerns and have them dealt with fairly.
- Is the grievance procedure contractual?
- Usually no. Most employers keep the detailed procedure non-contractual for flexibility, but reference it in the contract. However, the right to raise a grievance is often implied as a term of the employment relationship.
- What if my employer ignores my grievance?
- Failing to deal with a grievance can lead to constructive dismissal claims and increased tribunal awards. Employers who unreasonably fail to follow the ACAS Code can have awards increased by up to 25%.