5 Mistakes SMEs Make with Grievances (and How to Fix Them)
A grievance has landed. Someone's complained about a manager, working conditions, unfair treatment, or something else. Most SME owners have never handled one. So they do what seems logical, and then it goes wrong.
Here are the five mistakes we see most often, and how to avoid them.
Mistake 1 -Dismissing It Too Quickly
"She's just upset. She'll get over it."
A grievance is formal. Once someone says "I want to raise a formal grievance", you have to treat it as one. Dismissing it or telling them to "get over it" looks defensive and unfair. If they later go to tribunal, you'll look worse because you ignored them.
The fix: Take it seriously. Acknowledge it in writing. Tell them you'll investigate fairly and how long it will take. Even if you think it's nonsense, take it seriously.
Mistake 2 - Investigating Yourself
"I'll just ask the manager what happened."
If the grievance is about a manager, you can't investigate by asking the manager. That's a conflict of interest. Even if the grievance is about someone else, asking one side without the other looks biased.
A fair investigation talks to everyone: the person who raised it, the person it's about, and any witnesses. Separately. In writing.
The fix: If you're too close to it, or you suspect you'll be biased, get someone external to investigate. It's fairer and it's stronger legally.
Mistake 3 - Mixing Investigation and Decision
"Let me look into this and let you know what we're going to do."
Investigation and decision should be separate. You gather the facts, then you decide what they mean. Mixing them means you're looking for evidence to support a conclusion you've already reached.
The fix: Investigate first. Document everything. Then, separately, review all the evidence and decide. This separation is your protection.
Mistake 4 -Not Giving Them a Chance to Respond
"I've looked into it and here's what we found."
The whole point of a grievance is that the employee gets to explain their side. If you investigate and decide without giving them a chance to respond to what you've found, it's not fair. They'll feel railroaded. And they'd be right.
The fix: After investigation, hold a formal grievance hearing where you explain what you found and they respond. Then make a decision based on all of it.
Mistake 5 - No Appeal
"That's the end of it. We've decided."
A fair process always has an appeal. If someone disagrees with the outcome, they need a way to challenge it. No appeal = unfair process, full stop.
The fix: Tell them in the outcome letter that they can appeal, who they appeal to, and by when (usually 5–10 working days).
What a Fair Grievance Looks Like
Employee raises a formal grievance (in writing or verbally)
You acknowledge it and outline the process
You investigate fairly (someone who's not biased talks to everyone)
You hold a hearing where they can respond to what you've found
You make a decision and communicate it in writing
They have the right to appeal
The appeal is heard by someone who wasn't involved in the first decision
You communicate the final outcome in writing
It takes 4–6 weeks. It's thorough. It's fair. And if it goes to tribunal, you're protected.
Why This Matters
An employee who feels their grievance was dismissed out of hand is an employee who'll go to tribunal. Even if they don't win, it'll cost you time, stress, and money to defend.
An employee who feels their grievance was taken seriously, investigated fairly, and decided on the facts? They might still not be happy with the outcome. But they're less likely to escalate it further.
Need to run a fair grievance? We handle the investigation, chair the hearing, and manage the whole process.