This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how internal grievances influence employment tribunal outcomes in England and Wales. This guide explains grievance procedures, Acas Code implications, tribunal evidence, compensation adjustments, time limits and practical steps for employees and employers navigating workplace disputes.
In UK employment law, handling workplace disputes effectively often starts with the internal grievance process. A grievance provides an employee with a formal mechanism to raise concerns about treatment at work, discrimination, bullying, dismissal, pay disputes or other issues. When a dispute is not resolved internally, the employee may pursue an employment tribunal claim. How grievances are managed, and whether the relevant procedural rules have been followed, can significantly influence the outcome of a tribunal claim, including compensation awards and how tribunals view conduct before proceedings. This article explains the legal relationship between grievances and tribunal outcomes in England and Wales.
What Is a Grievance?
A grievance is a formal complaint raised by an employee about something that affects them in the workplace, such as unfair treatment, discrimination, contractual issues or dismissal. Most employers have a written grievance procedure set out in an employee handbook or policy. Employees typically raise grievances in writing so that the employer is formally on notice of the issue and can investigate appropriately. Employers should follow a fair process to investigate, meet with the employee, and communicate the decision and right to appeal.
Grievances and Tribunal Claims: Why the Link Matters
Early Resolution and Avoiding Tribunal Claims
A well‑managed grievance procedure can resolve workplace issues before they escalate to an employment tribunal. Employers that listen, investigate and address genuine concerns may defuse disputes that otherwise could lead to formal claims. Settling matters internally is usually quicker, less costly, and can preserve working relationships.
Notice to Employer and Building a Paper Trail
Raising a grievance puts the employer on notice of the problem and allows both parties to document their positions and conduct investigations. If a tribunal claim follows, the grievance and its handling can provide a paper trail that identifies key facts, dates and issues. Tribunals will consider this evidence as part of their assessment of whether the employer acted reasonably and followed correct procedure. In some cases, tribunal decision‑making draws upon the grievance process to understand the context of the alleged unfair treatment or discrimination.
Impact on Tribunal Compensation Awards
Under the Acas Code of Practice on disciplinary and grievance procedures, tribunals will consider whether the employer (or the employee) reasonably followed the Code. The Code represents minimum standards for handling grievances fairly and transparently. If a tribunal finds that the employer unreasonably failed to follow the Code, it may increase any compensation award by up to 25 per cent. Conversely, if the employee unreasonably failed to follow the Code, compensation may be reduced by up to 25 per cent. This adjustment applies in many types of claims including unfair dismissal and discrimination.
Tribunals judge reasonableness by considering all circumstances, including the size and resources of the employer and what steps were taken to handle the grievance.
Procedural Requirements and Tribunal Considerations
Exhausting Internal Grievance Procedures
Tribunals do not normally require an employee to complete every step of an internal grievance process before bringing a claim, but evidence of having pursued grievances can significantly strengthen a case. A tribunal may view failing to exhaust internal procedures unfavourably if doing so could reasonably have resolved the dispute. In such circumstances, a compensation award might be adjusted under the Acas Code regime.
Grievances and Time Limits
Tribunal claims must generally be filed within three months minus one day of the alleged act of unfair dismissal or discriminatory act. Engaging in the grievance procedure may delay bringing a tribunal claim, but in some cases tribunals have held that pursuing grievances can be a factor weighing in favour of extending this time limit on a just and equitable basis, especially where the grievance clarified the issues and put the employer on notice. Extension applications are discretionary and depend on factors such as employer notice and prejudice.
Grievance Handling Failures and Tribunal Claims
Failure to Deal with Grievances Properly
Employers that fail to investigate grievances adequately or to address them may inadvertently increase the likelihood of tribunal claims. Poor grievance handling can give employees reasons to escalate issues externally, such as bringing claims for unfair dismissal, constructive dismissal, discrimination, or breach of contract. Procedural failures, inconsistent investigations or denial of appeal rights can be used as evidence that the employer acted unreasonably or breached implied terms of trust and confidence.
For example, an Employment Appeal Tribunal ruling has highlighted that failure to provide an impartial grievance appeal process could amount to a breach of trust and confidence, giving rise to a constructive dismissal claim.
Internal Resolution Vs Tribunal
In some cases, resolving an issue during a grievance may eliminate the underlying dispute entirely or significantly narrow the issues in a future tribunal claim. Even if a grievance is not upheld, the employer's documentation of their fair handling of the complaint and explanation of outcomes can assist their defence in tribunal proceedings. Conversely, if the grievance is dismissed but the tribunal finds the employer's approach flawed, this can bolster the employee's claim. Evidence from internal meetings, reports and investigation outcomes often forms part of tribunal evidence.
Practical Guidance
For Employees
- Raise grievances promptly in writing to provide clear notice of your concerns.
- Keep records of all communications, meetings and decisions related to your grievance.
- Follow appeal rights within the grievance procedure if the outcome is unsatisfactory.
- Consider whether grievances clarify or solidify your case if you anticipate tribunal action, particularly for discrimination or dismissal claims.
For Employers
- Implement and follow grievance policies that comply with the Acas Code of Practice.
- Investigate thoroughly and impartially, documenting steps taken and reasons for decisions.
- Communicate outcomes and appeal rights clearly to employees.
- Recognise that poor grievance handling can influence tribunal outcomes, including potential compensation uplifts.
Key Takeaways
Grievances and tribunal outcomes in England and Wales are closely connected. A properly conducted grievance process can often prevent disputes from escalating to tribunals, provide valuable evidence about workplace issues, and in some cases influence compensation awards. Employment tribunals review whether internal procedures, including the Acas Code on disciplinary and grievance processes, were followed, and may adjust awards where unreasonable failures occur. Both employees and employers should engage with grievance procedures conscientiously as their conduct and documentation can directly shape the trajectory and outcomes of subsequent tribunal claims.
