How Do I Update Our Grievance Policy for a Manufacturing Plant? Seeking Guidance and Examples

Dear all, greetings to all HR professionals. I have been following the references given here. I work as an Executive HR in a manufacturing plant with an employee strength of approximately 1500 in the Uttarakhand region. We need to update our grievance policy.

Grievance Policy Update

Can someone please help me clear my doubts and provide a basic outline so I can frame the policy, considering the legal implications for staff and workmen?

Mandatory Grievance Mechanism

For 20 plus members, we need to have a grievance mechanism mandatorily. We have an active work committee. Can someone please help me with the scope of the policy and also what should be the general steps? Would it be the same for all employee levels, and would the plant policy and the policy in the corporate office be the same?

Policy Framing Assistance

Please assist me in framing the policy, covering all necessary steps. It would be helpful if you could share the policies of your organization. I want to study and understand the differences among them so I can frame the policy, taking into account all the merits and demerits of each. Specifically, I am interested in how to cover staff, workmen, and employees at other corporate offices.

Thank you so much. Looking forward to your positive response.

Thank you so much for the response, sir, and sorry for confusing you. My company is a manufacturing company, and we already have a standing order as the employee strength is approximately 1500 for our manufacturing plant, consisting of staff and workers.

Grievance Policy Basics

We have a set hierarchy. Please help me with the basics of the grievance policy, like how I should formulate the policy, on what grounds, who will address grievances, and timelines, keeping in view the legal implications. Scope & applicability of the policy on staff and workers, and what should be the steps for redressal.

It would be really helpful if you could share the grievance policy of MNC companies so I can benchmark them. Thank you for the quick response, sir. I appreciate your time.

Even if the environment is healthy and we have terms regarding the grievance redressal in our standing order.

So my question is, if we have a standing order, do we need not to have a policy in place? Is it not mandatory? As far as my knowledge, standing orders are applicable to workmen-level employees. So, sir, how will we address concerns of staff level or our corporate office? I guess they need to maintain a policy for redressal. Please, sir, state your point to clear my doubts.

Dear Mani Bhandari, so far as your establishment is concerned, it is mandatory to constitute a Grievance Settlement Committee as per the provisions of the Industrial Disputes Act, 1947.

The importance of the Grievance Settlement Committee

The very constitution of the Grievance Settlement Committee is not only a step forward in giving sufficient room for the Alternative Dispute Mechanism within the industrial establishment but also promotes collective bargaining, which is the foundation under the IDA, 1947 for prevention as well as amicable resolution of industrial disputes in an effective manner.

Objective and purpose of Standing Orders vs. Grievance Redressal Mechanism

The objective and purpose of Standing Orders are certainly different from that of an internal mechanism for grievance redressal. Of course, it would have been somewhat pertinent had you questioned the need for a GSC under section 9-C when there is a Works Committee constituted under section 3 of the IDA, 1947. The Works Committees are normally concerned with the problems arising in the day-to-day working of the concern. However, the function and responsibility of the WCs cannot go beyond recommendations. Therefore, employee grievances, being a matter of personal concern, can only be resolved by a special machinery constituted for that specific purpose and hence the need for a GSC under section 9C.

Analyzing the provisions of the Grievance Settlement Committee

If you carefully analyze the relevant provisions like its constitution, rotational chairpersonship among the management and labor, proportionate representation of women employees, compulsion to exhaust the grievances first before the GSC, and in the event of refusal to accept the decision of the GSC, the right to agitate the grievance before other forums like conciliation, arbitration, and adjudication, certainly you will realize the need for such an internal mechanism not by way of mere statutory compliance.

The concern for the redressal of non-workman category employees also would highlight the need for such a policy in place.

Dear Mam, thank you so much for your prompt response. Like you have said, an alternative mechanism is necessary. I have a question.

We have a proper Work Committee led by our LWO, with a constitution and frequency as per the rules, to address the common grievances of workmen. We don’t have any union, and industrial relations are very good. Since we all know the Work Committee is the first step in the ID Act settlement machinery to resolve grievances with mutual agreement, the issue is then raised further to the conciliation officer, and so on.

However, I have discussed this with many HR people in the industry, and all of them confuse my question. As per my knowledge, grievance settlement machinery and the Work Committee are two completely different things and cannot be used simultaneously. Both are required to be there: a grievance mechanism to address individual complaints and a Work Committee for collective issues.

For personal grievances, can you please explain in steps or in detail what should be considered? How should I draft my policy in accordance with establishing a grievance mechanism? Also, please note that the act states that if the company already has a prevailing grievance handling mechanism, then there’s no need to constitute the committee.

In committee work, workmen representation is required with a regular proportionate number. But is it logical to have a committee for addressing petty grievances, where a committee with workers has to be called upon? Also, what if the grievances of staff employees are there? Do we still discuss this with our workmen representatives?

As stated by you, if an employee grievance is not addressed, can it be raised further just like the machinery in the ID Act, to the conciliation officer, and then to the conciliation officer, board of conciliation, court of inquiry, etc.?

As you stated, Mam, you are absolutely correct that for both workmen and non-workmen staff, it is very important. Also, it will boost the satisfaction level if a clear set of instructions is there. I want to draft the policy. Can you please help me with the basic structure and the must-haves for this policy, which is legally compliant as well? Please correct me if I have stated any wrong information.

Dear Sir,

Sorry for the typo. Requesting you to please view the attachment and let me know if it is correct.

Can we have a grievance policy without the constitution of the committee?

Can we have a grievance policy with set steps like a written complaint to the HR Department, then to the Plant Head, and then to the CHRO, with defined timelines? Please explain the steps and timelines if any.

Actually, we have a very strong SH policy at our plant, and we have shared the direct contact details of our CHRO in case of any complaint if required, along with the details of the committee members, just in case one doesn’t trust the members. Also, we have a CHRO connect session with our staff employees monthly for suggestions and everything, as they don’t get the opportunity to interact with the management.

We have an HR team at our plant and corporate level. I have not handled policy framing before, so I have put in my research from the web, but still, some questions and confusions are there. I want to understand the whole procedure of handling the policy framing, what the steps involved are, and I want to clear my basic knowledge.

Thanks a ton in advance already. 