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Why a Grievances Redressal Committee Is Essential for Every Organisation

Grievances Redressal Committee

Introduction

What if your employees stop showing up because no one’s listening to them?

In late 2024, thousands of employees from two major public transport organisations in Karnataka, stopped work. Why? Their long-pending grievances around salary delays and dues had been ignored for months. There was no formal committee to address their concerns. What began as internal frustration turned into a full-blown strike, disrupting the lives of lakhs of commuters and dragging the government into a PR and legal mess.

We’re talking about a state-level employer here. Yet, the absence of a proper grievance redressal system cost them dearly in trust, productivity, and public image.

In this blog, we’ll break down:

  • What a grievance redressal committee is and how it works
  • Its importance under Indian labour law
  • What the law expects from employers
  • A real-world case of what happens when it’s ignored
  • Key setup tips, checklists, and mistakes to avoid
  • How Vishaal Consultancy Services helps businesses build better systems

What is the Role of a Grievance Redressal Committee?

A grievance redressal committee is a formal group within an organisation that addresses employee complaints in a structured and time-bound manner.

This committee typically includes:

  • A senior leader or manager (neutral and unrelated to the complaint)
  • One or more HR team members
  • A representative from the employee side
  • In certain cases, an external advisor for objectivity
The purpose is to provide employees with a safe space to raise concerns and ensure fair treatment across the board.

Why Every Company Needs A Grievance Redressal Committee?

No matter if you’re running a small team or a large company, you’ve got to have a proper way for employees to raise complaints. People need to feel safe and know someone is really listening. Let’s talk about why it makes sense to set up a grievance redressal committee and how it helps both your people and your business.

1. Compliance With Labour Laws

As per Indian labour law, especially the Industrial Disputes Act 1947 and state-specific Standing Orders, companies are required to have a proper grievance mechanism. This applies particularly to:

  • Factories and industrial establishments
  • Companies with 20 or more employees
  • Sectors like IT, healthcare, logistics, and education
Failure to comply can lead to penalties, legal disputes, or complications during labour inspections.

2. Building Trust and Transparency

When employees know their voices matter, they are more likely to stay committed. A working grievance redressal committee helps build a culture where issues are addressed early, before they damage morale or productivity.

3. Preventing Escalations

Without a proper system, small complaints can grow into major disputes. A grievance redressal committee gives employers a chance to resolve matters internally, without outside interference or court cases.
Grievances Redressal Committee
Don’t wait for complaints to pile up! Contact Vishaal Consultancy Services, today..

Case Study: Transport Strike in Karnataka

Before we get into what the law says, let’s take a real example to see how things can go wrong when grievances are ignored.

Let’s look at a real-life example to understand the impact of not having a proper grievance redressal system in place.

Incident:
In late 2024, employees across multiple public transport organisations in Karnataka raised long-standing issues related to unpaid dues and delayed salaries. Repeated complaints and formal notices to management yielded no action.
Violations:
  • Employee grievances were ignored despite the formal escalation
  • No internal committee existed to address concerns on time
  • The protest escalated into a statewide strike, affecting lakhs of daily commuters
Outcome:

The strike disrupted transport services for days. The labour department intervened, declaring the strike illegal and warning of disciplinary action. Eventually, some payments were processed, but the company’s image suffered, and employee trust eroded.

These kinds of mistakes don’t just mess up internal processes—they impact real people and their lives. And once you lose an employee’s trust, it’s tough to get it back. This case is a reminder that when you ignore grievances, you’re not just risking money or time. You’re risking the faith your people have in you. That’s why grievance redressal isn’t only a legal step—it’s about being fair, responsible, and human.

Don’t wait for things to go wrong. Contact Vishaal Consultancy Services today!

What The Labour Law Says

Now that you’ve seen how damaging things can get without a proper system, let’s look at what Indian labour law actually expects from employers.

Grievance redressal isn’t just a good HR practice, it’s a legal necessity. Indian labour laws, including the Industrial Disputes Act and state-specific Standing Orders, require companies to establish a formal system to hear and address employee complaints. These laws aim to create a balance between employer authority and employee rights, ensuring fairness in the workplace.

To stay compliant, every organisation should understand what the law actually expects. Here’s a quick breakdown of what your grievance redressal process should ideally include:

Legal Expectations:
  • Acknowledge complaints within 48 hours of receipt
  • Begin the enquiry process within 5 working days
  • Keep a written record of all proceedings
  • Respond to the complainant in writing after resolution
  • Maintain strict confidentiality throughout the process
These guidelines are especially important in sectors with high employee sensitivity, such as manufacturing, education, logistics, and healthcare.
Committee Structure – What’s Recommended:
  • At least 3 members on the committee
  • One woman member for gender representation
  • All members trained in workplace ethics and basic labour laws
  • Member rotation every 1–2 years to keep the process unbiased
These are based on practical interpretations of grievance redressal committee guidelines seen across industries, combining compliance with common sense.
Grievances Redressal Committee

Is Your Grievance Redressal System Working?

So, how do you know if your current system is working well? Here’s a quick checklist to help you figure it out:
  1. Is there a simple, written grievance policy that everyone can access?
  2. Have you set up a fair and gender-balanced committee to look into complaints?
  3. Do your employees clearly understand how to raise an issue?
  4. Are you keeping track of all complaints and making sure they’re resolved on time?
  5. Have your managers been trained to handle both casual and serious concerns?
If you said “no” to even one of these, it might be a good time to pause and rethink. Vishaal Consultancy Services can help you fix the gaps, quickly and properly.

Common Mistakes to Avoid

Even with the best intentions, many companies still slip up. Let’s look at the most common errors we’ve seen on the ground.

Over the years, we’ve seen that even well-meaning organisations fall into the same traps. These mistakes may seem small at first—but they can have big consequences when not corrected in time. Here are some of the most common ones:

  • Involving only HR in the committee, may lead to perceived bias
  • Ignoring verbal or informal complaints that never get recorded
  • Taking too long to respond or resolve issues due to unclear processes
  • Skipping basic training for committee members on legal requirements
  • Treating the grievance committee as a formality instead of a functional safeguard
Avoiding these pitfalls helps your grievance redressal committee do what it’s meant to do—solve problems early, fairly, and respectfully.
Grievances Redressal Committee

How Vishaal Consultancy Services Can Help

If you’re not sure where to start or feel like your current system has gaps, don’t worry — you’re not alone. Here’s how we step in to help.

At Vishaal Consultancy Services, we don’t just offer templates or checklists. We partner with you to get this right from the ground up. Whether you’re starting fresh or fixing what’s not working, we’ll walk you through:

  • Writing or updating your grievance redressal policy
  • Setting up a fair and trained internal committee
  • Reviewing your current process and spotting gaps
We help you move from ‘we should’ to ‘we’ve done it right’—with clarity, legal backing, and a people-first mindset.
Need help setting up your grievance redressal system? Talk to our experts now.

Conclusion

Grievance redressal isn’t just some HR checklist. It’s about people feeling heard before things get messy. If your team trusts that someone’s listening and will act fairly, most problems won’t even blow up in the first place.

And if you’re unsure where to start, you’re not alone. That’s where Vishaal Consultancy Services comes in. With our Virtual HR support, labour law advisory, and statutory compliance expertise, we help you build systems that are legally sound and people-first.

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