What to Do When an Employee Raises a Grievance After You Start Disciplinary Action

If you run a small business, there’s a very specific moment that can make your heart sink. You’ve started a disciplinary process (lateness, conduct, performance, whatever it is), and then the employee raises a grievance.

It might sound like:

“This is unfair – you’re targeting me.”
“My manager’s been bullying me, and now I’m being disciplined for speaking up.”
“You didn’t investigate properly.”
“Other people do the same thing, and they’re not being disciplined.”

If you’re thinking, “Right… what do I do now without making this ten times worse?” you’re not alone. This happens all the time, and it doesn’t automatically mean you’ve done anything wrong.

What it does mean is you need to slow down just enough to keep things fair, consistent, and properly documented. That way you protect your business, and you treat the employee reasonably too.

Here are a few straightforward steps you can follow.

What to expect in this article:

First things first. Does the grievance automatically stop the disciplinary?

Not always. But sometimes it should pause, or at least be adjusted.

A disciplinary is you addressing alleged misconduct or performance issues. A grievance is the employee raising a formal complaint. They’re separate processes, but when they overlap, the big thing you’re trying to avoid is this:

A disciplinary outcome that looks pre-decided while a complaint about bias or unfairness is still hanging in the air.

A helpful rule of thumb:

If the grievance is about the disciplinary process itself (bias, unfair investigation, conflict of interest), you may need to pause the disciplinary while you look at the grievance, especially if it affects fairness.
If the grievance is unrelated (for example, they’re unhappy about holiday allocation, but the disciplinary is about serious misconduct), you can often continue the disciplinary and handle the grievance in parallel.

If you’re unsure, that’s usually a sign you should at least pause briefly to triage it properly.

Person in striped shirt facing a computer monitor, appearing stressed while reading text on screen.

Why this situation is so common (and why it can get messy)

Sometimes grievances raised mid-disciplinary are completely legitimate. Sometimes they’re raised because the employee feels cornered. And yes, sometimes they’re used to delay things.

But here’s the good news. Your response doesn’t need to change based on their motive. Your job is to run a fair process.

Handled well, you protect:

The integrity of your decision-making,
Team morale (especially in a small team where everyone feels everything),
And your time (because unclear processes drag on forever).

Handled badly, you risk:

The disciplinary being challenged as unfair,
The situation escalating into a formal dispute,
And a lot of stress you simply don’t need.

The practical step-by-step (what to do next)

Step 1: Acknowledge the grievance quickly and keep it calm

Reply in writing to confirm:

You’ve received it,
You’ll handle it under your grievance procedure,
And you’ll confirm next steps and timelines.

Keep it neutral. This isn’t the moment to debate the details.

Step 2: Triage it. What type of grievance is this?

You’re basically sorting it into one of three buckets:

Process grievance: “Your investigation is biased, unfair, or pre-decided.”
Substantive grievance: “Bullying, harassment, discrimination, retaliation, health and safety” (anything serious that needs proper handling).
Unrelated grievance: a separate issue that doesn’t affect the disciplinary fairness.

This triage step is what helps you decide whether to pause or continue.

Step 3: Decide whether to pause the disciplinary (and write down why)

Even if it’s just a dated email to yourself, note:

What the grievance alleges,
Whether it impacts the disciplinary fairness,
Your decision: pause, continue, or continue with adjustments.

A really practical adjustment that often helps is this. If the grievance alleges bias against the manager running the disciplinary, consider switching the disciplinary chair or investigator. That one change can remove a lot of heat from the situation.

Step 4: Watch for ‘red flag’ allegations

If the grievance touches on discrimination, harassment, or retaliation for raising concerns, treat it as higher risk.

No need to panic. Just be more structured:

Keep everything in writing,
Avoid “off the record” chats,
And make sure whoever investigates is impartial.

Step 5: Hold a proper grievance meeting (don’t try to shortcut it)

Invite the employee to a grievance meeting and confirm:

What the meeting is about (so it’s fair),
Who will attend,
Their right to be accompanied where applicable,
And what happens next.

A simple meeting structure that works:

Ask them to explain the grievance in their own words.
Ask what outcome they want (this is often revealing and helps you resolve it).
Ask for specifics: dates, examples, messages, witnesses.
Confirm next steps and when they’ll hear back.

Step 6: Investigate proportionately (this doesn’t need to be a giant HR project)

A small business investigation can be simple and still be solid. Common actions:

Review relevant emails or messages,
Check rota or time records,
Speak to 1 to 3 relevant witnesses,
Review the disciplinary investigation notes for gaps.

It’s a good idea to keep an investigation log. Date, action, what you found. It’s boring, but it saves you later.

Step 7: Write a clear outcome letter

Your outcome should say:

What you considered,
What you found (upheld, partially upheld, or not upheld),
What actions you’ll take (if any),
Whether the disciplinary will resume, and how you’ll keep it fair.

If you’re resuming the disciplinary, say what you’re doing to protect fairness (for example, new chair, additional investigation step, clarified allegations).

Step 8: Offer an appeal route (and don’t take it personally)

If they appeal, ideally someone different hears it. In a small business, that might be the owner or director rather than the line manager.

Two professionals discussing documents and taking notes in a modern office environment.

The most common mistakes (and how to avoid them)

Rushing to finish the disciplinary because it feels urgent
Assuming the grievance is just a tactic and brushing it off
Letting the accused manager investigate themselves
No notes or poor notes
Changing the allegations mid-way without clearly resetting the process
Informal side conversations that later look like bias

If you avoid those, you’re already in a strong position.

A quick decision guide you can use on the day

Ask:

Does the grievance allege bias, discrimination, bullying, or a flawed investigation linked to the disciplinary? If yes: pause or adjust the disciplinary and look at the grievance first.
Is it genuinely unrelated to the disciplinary fairness? If yes: you can often run both in parallel.
Still unsure? That’s your cue to get a second pair of eyes before you go further.

When it’s worth getting outside support

If you don’t have HR in-house, this is one of those moments where a bit of guidance can save you weeks of stress and help you avoid a process that unravels later.

If you want an employer-focused option, you can look at Free Grievance Procedure Support for Employers to sense-check your steps, letters, and timelines.

A few copy-and-paste templates for you

Grievance acknowledgement email (to employee)

Subject: Acknowledgement of your grievance

Hi [Employee name],

Thanks for your email dated [date] raising a grievance. I’m writing to confirm we have received it and we will handle it under our grievance procedure.

I will review the points you have raised and will be in touch by [day/date] with the next steps, including arranging a grievance meeting.

If there is anything you would like to add, or any documents you would like us to consider, please send them over in advance of the meeting.

Kind regards,
[Your name]
[Job title]

Grievance meeting invite email (to employee)

Subject: Invitation to grievance meeting

Hi [Employee name],

Following your grievance raised on [date], I’m inviting you to a grievance meeting so we can discuss the issues you’ve raised and understand what outcome you are seeking.

Meeting details

Date: [date]
Time: [time]
Location / video link: [location or link]
Attendees: [name + role of chair], [note taker name + role if applicable]

What we will discuss
Based on your grievance, we will cover:

[Point 1]
[Point 2]
[Point 3]

You may bring a companion to the meeting in line with our policy (for example, a work colleague or trade union representative).

If you have any documents, messages, or other information you would like us to consider, please send them to me by [deadline date/time] so we can review them in advance.

If you cannot attend at the time above, please let me know as soon as possible, and we will try to rearrange.