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Free policy template · Word

Grievance Management Policy

A grievance management policy sets out how employees can raise work-related grievances, who handles them at each stage, the timelines, how hearings and appeals work, and the company's commitments on confidentiality and non-retaliation. It is the master document that all grievance forms, letters and registers sit under.

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Preview of the policy

[Highlighted] = fill in
[Company Logo][Company Name]

GRIEVANCE MANAGEMENT POLICY

Company:
[Company Name]
Policy No.:
[Reference Number]
Effective Date:
[Date]
Owner:
Human Resources
Approved by:
[Authorised Signatory]

1. Purpose

[Company Name] is committed to a fair workplace where employees can raise concerns without fear. This policy provides a clear, timely and confidential process to resolve work-related grievances.

2. Scope

This policy applies to all employees, probationers, trainees and apprentices at all locations of the company. Contract workers may use it for workplace-related issues.

3. Definitions

  • Grievance: any dissatisfaction or complaint by an employee relating to employment, such as pay, leave, working conditions, transfer, promotion or treatment at work.
  • Grievance Redressal Committee (GRC): the committee constituted under this policy to review grievances.
  • Exclusions: complaints of sexual harassment (handled by the Internal Committee under the POSH policy), protected disclosures (handled under the Whistleblower Policy), and matters already under disciplinary proceedings.

4. Policy Principles

  • Every grievance will be heard fairly and decided on facts.
  • Grievances will be handled confidentially and shared only on a need-to-know basis.
  • No employee will be victimised or treated unfavourably for raising a grievance in good faith or for being a witness. Retaliation is treated as misconduct.
  • Employees may be accompanied by a fellow employee at hearings.

5. Procedure

  1. Stage 1 – Informal: the employee raises the issue with the reporting manager, who aims to resolve it within [Number] working days.
  2. Stage 2 – Formal: if unresolved, or if the issue involves the manager, the employee submits the Employee Grievance Form to HR. HR acknowledges it within [Number] working days with a case number.
  3. Stage 3 – Review: HR or the GRC reviews the grievance, holds a hearing and, where needed, an investigation. A written decision is given within [Number] working days of the hearing.
  4. Stage 4 – Appeal: the employee may appeal in writing to [Appeal Authority] within [Number] working days. The appeal decision is final within the company.
  5. Closure: HR issues a closure letter once actions are complete and records it in the complaint register.

6. Grievance Redressal Committee

The GRC consists of [Number] members with equal representation of management and employees, including [Designation] as Chairperson and [HR Designation] as Secretary. Women employees will be represented on the GRC. Members with a conflict of interest in a case will step aside.

7. Responsibilities

  • Employees: raise grievances honestly and cooperate with the process.
  • Managers: listen, try to resolve informally and never discourage a formal grievance.
  • HR: register, acknowledge, coordinate hearings, maintain records and monitor for retaliation.
  • GRC: review grievances impartially and recommend fair outcomes.

8. Non-compliance

Retaliation against any employee, breach of confidentiality, or knowingly false grievances made with malicious intent may lead to action under the company's disciplinary procedure after due process.

9. Records

HR will maintain a complaint register and confidential case files and retain them for [Number] years.

10. Review

HR will review this policy every year or earlier on changes in law, including rules under the Labour Codes notified by the Centre and the state.

Approved by
[Authorised Signatory]
[Designation]
[Company Name]
Date: [Date]

What this template includes

  • Purpose and scope covering all employees and trainees
  • Definitions of grievance and what is excluded
  • Informal and formal stages
  • Grievance Redressal Committee composition
  • Timelines set by the company
  • Appeal process
  • Confidentiality and non-retaliation
  • Links to POSH, whistleblower and disciplinary policies

When to use it

  • Setting up a formal grievance redressal mechanism for the first time
  • Updating an older policy after the Labour Codes came into force
  • Expanding to new sites or states and needing one consistent process
  • Preparing for client, certification or investor audits

How to customise this template

  1. 1Fill in your own response timelines at each stage
  2. 2Name the committee members by designation, not by person
  3. 3Check committee requirements under the Labour Codes and state rules for your headcount
  4. 4Translate the policy and display a summary at each site
  5. 5Approve it through management and communicate it at induction

HR tips

  • Keep the steps simple; a complex policy discourages use
  • Make clear which matters go to the POSH Internal Committee instead
  • Train managers on the informal stage, where most grievances are resolved
  • Review the policy annually against actual case data

This template is a starting point. Review it against the Labour Codes (in force from 21 November 2025) and the rules notified by the Centre and your state, your standing orders and other policies, and with a legal adviser.

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Frequently asked questions

What is a grievance management policy?+

A company policy that explains how employees raise grievances, how they are investigated and decided, timelines, appeals and protections.

Is a grievance redressal committee mandatory?+

Requirements depend on headcount and applicable law, including the Labour Codes and state rules. Check the current rules for your establishment.

Does the grievance policy cover sexual harassment?+

No. Sexual harassment complaints are handled by the Internal Committee under the POSH Act 2013 and the company's POSH policy.

Can contract workers use the grievance policy?+

Many companies extend it to contract workers for workplace issues, while pay issues may also involve the contractor.