Dealing with malicious complaints in the workplace

Employers are under a duty to treat grievances seriously. A fair process protects both the business and its staff. But not every grievance is raised in good faith. False, vexatious, or malicious complaints can consume time and resources, damage morale, and even expose employers to legal risk if handled poorly.

Our employment solicitors regularly advise employers facing this difficult situation. The key is to recognise the risk, manage the process correctly, and protect the business from further harm.

What is a malicious complaint

There is no single legal definition. In practice, a complaint is malicious when it is deliberately false, or raised with the intention of causing harm rather than resolving a genuine workplace issue.

Other terms are often used interchangeably: malicious grievance, false grievance, vexatious complaint, or abuse of the grievance procedure. Whatever the label, the danger for employers is the same — you should not simply dismiss the complaint as baseless. Even if you suspect it is malicious, you must still follow a fair and transparent process.

Why employees make malicious complaints

The reasons behind vexatious complaints vary. Common motives include:

• Retaliation after disciplinary action or a poor appraisal.
• An attempt to delay or derail dismissal, redundancy, or performance management.
• Creating leverage in anticipation of an exit package or settlement.
• Personal animosity towards managers or colleagues.
• A pattern of repeated grievances to tie up management time.

Red flags can include inconsistent accounts, ever-shifting allegations, or grievances timed suspiciously after negative performance reviews or disciplinary steps. None of these proves a complaint is malicious, but they are indicators that the grievance should be handled with particular care.

Risks of mishandling a malicious complaint

Even a false complaint can expose an employer to liability if it is not handled correctly. The main risks are:

• Tribunal claims – mishandling a grievance may lead to claims for discrimination, victimisation, or whistleblowing detriment, regardless of whether the original complaint had merit.
   
• Cost and disruption – investigations absorb management and HR resources, diverting attention from the business.
   
• Staff morale – if staff perceive grievances as being dismissed too quickly, trust in the process erodes. If frivolous complaints are indulged, frustration grows.
   
• Reputation – false allegations, especially if public, can damage the standing of the business and senior managers.

How employers should respond

A proportionate, evidence-based process is the best protection against risk. Typical steps include:

1. Initial assessment - Review the complaint to establish whether it raises issues that merit investigation. Even if it appears baseless and potentially malicious, assume it must be checked properly.
    
2. Investigation - Appoint an impartial investigator, someone unconnected with the allegations. Independent solicitors are sometimes asked to conduct investigations where impartiality needs to be beyond question.
    
3. Evidence gathering - Interview witnesses, review relevant documents, and assess credibility. Consistency and corroboration are key.
    
4. Findings and decision - Prepare a written report setting out the facts established, the conclusions drawn, and the reasoning behind them.
    
5. Appeal - Allow an appeal route to show the process is fair and balanced.
    
6. Follow-up - Review internal policies and consider whether staff training is needed to prevent further vexatious complaints.

Disciplinary Action

If the complaint is considered to be deliberately false or potentially malicious, an employer may then take disciplinary action against the employee.   

A fair disciplinary process would still need to be followed setting out clearly the allegations against the employee and inviting them to a disciplinary hearing.  It should be made clear what the potential sanction might be and that if it is viewed as an act of gross misconduct then a potential outcome might be dismissal. 

Legal options in serious cases

Some malicious complaints extend beyond internal disruption and cause broader harm. In such cases, employers may have further legal remedies:

• Defamation or malicious falsehood – if damaging allegations are published outside the workplace.
• Breach of confidentiality – if confidential information is disclosed.
• Settlement agreements – where the employment relationship has broken down.

Employment tribunal defence

Malicious complaints can escalate into tribunal claims, particularly if the complainant alleges discrimination, victimisation, or whistleblowing. In these cases, the tribunal will scrutinise how the grievance was handled.

Employers who follow a fair process, document their reasoning, and allow for appeal are in the strongest position to defend such claims. Solicitors can play a key role in preparing the response, drafting pleadings, gathering evidence, and representing the business before the tribunal.

How employment solicitors help employers

Our solicitors support employers by:

• advising on whether a complaint appears malicious and how best to proceed.
• conducting or overseeing independent investigations.
• defending tribunal claims arising from false grievances.
• drafting and updating grievance and disciplinary policies.
• training managers to handle complaints effectively, spot warning signs and also handle disciplinary action.

FAQs for employers

These are some of the common questions our employment solicitors are asked when businesses are faced with malicious or vexatious complaints.

1. Can I dismiss an employee for making a malicious complaint?

Yes, but only if a fair investigation and disciplinary hearing establishes the complaint was deliberately false. Dismissal without proper process risks an unfair dismissal claim.

2. How do I prove a grievance is vexatious?

Evidence is key. Inconsistent accounts, lack of corroboration, and ulterior motives can all support the conclusion that a complaint is vexatious, but it must be properly documented.

3. What is the difference between a malicious complaint and a genuine one?

A genuine complaint raises legitimate concerns, even if not ultimately upheld. A malicious complaint is made in bad faith, with intent to cause harm. Both require the same fair process.

4. Can an employer be sued for mishandling a grievance?

Yes. If the process is unfair, employees may claim discrimination, victimisation, or constructive dismissal.

5. Can I sue an employee for defamation?

Potentially, if false allegations are published externally, they could cause reputational damage. This is uncommon and usually a last resort.

Protecting your business from malicious complaints

Malicious complaints put employers in a difficult position. Ignoring them risks legal claims; indulging them wastes time and resources. The safest course is a fair, proportionate process which may result in taking disciplinary action against the employee supported by clear legal advice.

Matthew Irvine, employment law expert, says:

"Malicious complaints are one of the hardest situations for employers to deal with. You cannot simply dismiss them out of hand, but at the same time they drain time and resources. The key is to run a fair, proportionate process – both when investigating the grievance and then, if appropriate, taking disciplinary action. That way, if the matter escalates to a tribunal, you can show the business acted reasonably while still protecting staff morale and reputation."

Our employment solicitors represent employers across various sectors, helping them manage grievances, defend tribunal claims, and enhance their internal policies. If your business is facing a malicious or vexatious complaint, contact us for expert advice tailored to your circumstances.