Grievance Procedure: A Comprehensive Guide For Businesses

In every workplace, disagreements, misunderstandings, or dissatisfaction can arise. While no organisation wants conflict, it’s how you manage those moments that truly defines your workplace culture.

A well-structured grievance procedure helps businesses resolve issues quickly, fairly, and in compliance with employment law before they escalate into costly or reputation-damaging disputes.

In this guide, we explain what a grievance procedure is, how it works, and why every business should have one. You’ll also find practical steps, examples of  grievance procedures, and insight into the important role HR plays in the process.

What Is a Grievance Procedure?

A grievance procedure is the formal process an organisation uses to handle employee complaints or concerns. It provides a clear framework for raising, investigating, and resolving issues in a consistent and transparent way.

Grievances can cover a wide range of topics, including pay or working conditions, bullying or harassment, unfair treatment, health and safety concerns, or breaches of company policy.

In many cases, a grievance may lead to a formal workplace investigation to establish facts objectively and ensure that any decisions made are fair and evidence based.

Essentially, a grievance procedure ensures that when an employee feels something isn’t right, there’s a structured and fair way to address it.

Without one, employees may feel unheard or seek external remedies such as lodging complaints with the Fair Work Commission, which can be time-consuming, expensive, and damaging to your workplace culture.

A good grievance procedure builds trust, improves communication, and demonstrates your commitment to a safe, fair, and compliant workplace.

If you’re reviewing your workplace policies, it’s worth exploring how a strong procedure aligns with your broader HR consulting strategy.

Why Every Business Needs a Grievance Procedure

A formal grievance procedure offers clear benefits to both employers and employees. It helps prevent minor issues from escalating, protects the business legally through documented fairness, and reinforces a culture of transparency and accountability.

It also supports compliance with Fair Work and WHS requirements in Australia, reducing the risk of legal exposure and employee dissatisfaction.

Establishing a consistent process demonstrates to employees that their voices matter and ensures that all concerns are handled with professionalism and impartiality. If serious conflict does arise or if you require additional support, HumanX HR team can also offer workplace disputes guidance or mediation support.

The Grievance Procedure Process Step by Step

Every workplace is unique, but most grievance procedure processes follow the same essential steps. The key is to keep the process impartial, timely, and well-documented.

1. Receive and Acknowledge the Grievance

• Employees should know how to raise a concern, whether verbally, in writing, or through a formal grievance form.
• Acknowledge the grievance promptly and explain the next steps so the employee feels heard and supported.

2. Gather Information

• Collect all relevant information, including dates, evidence, witness statements, or documents that may support the claim.
  At this stage, maintaining confidentiality and objectivity is essential. Explore practical approaches in your employee relations policies.

3. Investigate Fairly

• An impartial investigation ensures that both sides are heard and that decisions are based on facts rather than assumptions.
• When internal communication becomes strained, consider using a neutral third party through professional workplace mediation.

4. Decide on an Outcome

Based on the findings, determine what action is appropriate. This could include mediation, further training, policy reviews, or disciplinary action if necessary.

5. Communicate and Document

• Share the outcome clearly and respectfully with all involved parties.
  Document every step of the process this ensures accountability and serves as a record should questions arise later.

6. Follow Up and Review

• After the resolution, check in with the employee to confirm that the issue has been addressed and to ensure that no further concerns have emerged.
  Regular reviews of your grievance procedures also help maintain compliance and continuous improvement.

When managed effectively, the grievance procedure process strengthens workplace culture and protects both individuals and the organisation.

Examples of Grievance Procedures

To understand how a formal process works in practice, here are two examples of how a grievance procedure can be applied in different workplace situations.

Rostering and Workload Dispute

Situation:
A team member believes their supervisor is unfairly assigning weekend shifts, leaving them with an excessive workload compared to colleagues.

Process:

• The employee raises a written grievance outlining their concerns and providing roster evidence.
• HR acknowledges receipt and meets with the employee to clarify details.
• HR reviews rosters and interviews the supervisor and other team members.
• Findings show an unintentional imbalance caused by a lack of scheduling oversight.
• HR works with the manager to rebalance rosters and implement a transparent scheduling system.
• The employee is informed of the outcome and confirms satisfaction during a follow-up meeting.
  

Result:
The issue is resolved fairly, and future roster changes are now reviewed monthly by HR to maintain equity.

Bullying or Behavioural Concern

Situation:
An employee reports feeling intimidated and excluded by a senior colleague, claiming repeated dismissive comments during meetings.

Process:

• The employee submits a confidential complaint to HR.
• HR acknowledges the grievance and assures confidentiality.
• A formal investigation is launched, including interviews with witnesses and review of communication records.
• The findings confirm unprofessional behaviour that breaches the company’s code of conduct.
• HR arranges mediation between the parties and provides the senior employee with behavioural training.
• HR documents the outcome and checks in with the affected employee after one month.
  

Result:
The employee feels supported, the behaviour stops, and the team’s communication improves following mediation and training.

Grievance Policy Best Practices

Creating or refining a grievance policy is about more than compliance it’s about building a culture of respect and accountability.

Here are key best practices for businesses:

• Be transparent: Ensure employees know how to raise concerns and what to expect.
  
• Protect confidentiality: Encourage open communication by keeping matters private.
  
• Train managers: Equip leaders with the skills to manage grievances fairly and consistently.
  
• Be consistent: Apply your policy uniformly across all levels of the business.
  
• Review regularly: Update policies to reflect legislative or organisational changes.

These steps support positive employee relations and demonstrate that your organisation values fairness and clarity. When combined with strong communication and ongoing review, they help prevent disputes and strengthen trust across the workforce.

How can HumanX HR support you in providing Grievance Procedures

Human Resources plays a crucial role in ensuring that the grievance procedure runs smoothly, fairly, and consistently. HR professionals act as neutral facilitators who ensure both sides are heard, compliance guardians who keep the business aligned with Fair Work and WHS laws, and advisors who guide managers through complex or sensitive conversations.

They also maintain the documentation that supports transparency and ensures any outcome is handled consistently with organisational values and legal requirements.

If your business lacks dedicated HR resources, partnering with a trusted provider such as HumanX HR can ensure that grievances are handled fairly, confidentially, and in line with best practice. For ongoing insights and updates, explore the latest articles on the HumanX Blog.

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