2. Why adopt a grievance policy?

In many cases, the association can resolve grievances and disputes internally. Resolutions are usually the simplest when the association has a well-publicised and transparent procedure, or grievance policy, to deal internally with a grievance or dispute. When this procedure is used as soon as the association becomes aware of the issue, it can often avoid having to resort to more complex processes, such as calling general meetings or expelling a member.

Occasionally, however, even these processes fail and a dispute can only be resolved externally, usually by the Courts or an external mediator. Sometimes this is simply unavoidable, but given the potential expense, not just in monetary terms, but in time and effort as well, it is worth taking the time to develop a grievance policy that encourages people to use it as a first step.

The primary purpose of a grievance policy is to set out the steps to be followed in dealing with a grievance or dispute internally, and to ensure a fair and speedy response. The policy need not be complex or technical. It can and, perhaps, should also be contained in the rules of association. See for example, Rule 24 of Commerce's model rules. A more comprehensive example for the fictitious Harmony Community Development Association appears at the end of this Section.

Some disputes may be subject to procedures set out in existing awards, employment agreements or contracts, and which may apply to internal disputes, either in conjunction with, or instead of, a grievance policy.

A grievance policy usually attempts to provide for both informal and formal processes for dealing with grievances and disputes. These might include, for example, informal meetings with the party or parties involved, mediation, a meeting with a committee member or a formal hearing before a committee.