Workplace complaints are inevitable. Whether it’s about bullying, discrimination, unfair treatment, or management style, every employer will face them at some point. The way you respond can have a lasting impact – not just on the individuals involved, but also on workplace culture, staff retention, and legal risk.
Poor handling of complaints can lead to adverse action claims, unfair dismissal applications, or reputational damage. On the other hand, a well-managed process shows your business takes employee concerns seriously and reduces the likelihood of litigation.
This article, written my our employer lawyers, provides employers with a practical guide on what to do (and what not to do) when handling workplace complaints.
Key Takeaways
Take every workplace complaint seriously, no matter how minor it appears.
Follow a clear, consistent, and documented process when investigating.
Avoid knee-jerk reactions like disciplining or dismissing complainants.
Maintain confidentiality and fairness at every stage.
Seek legal advice early to avoid risks of adverse action or retaliation claims.
What Employers Should Do
1. Acknowledge and Document the Complaint
Always acknowledge the complaint in writing. Create a record of what was raised, when, and by whom. Documentation is critical if the matter escalates into legal proceedings.
2. Treat Every Complaint Seriously
Even if you think the complaint is minor or unfounded, treat it with respect. Courts and tribunals expect employers to genuinely consider all concerns. Dismissing a complaint outright may later be seen as retaliation.
3. Investigate Promptly and Fairly
An investigation should:
Be impartial (ideally handled by HR or an external investigator);
Give both sides the opportunity to be heard, including any witnesses; and
Be conducted without unnecessary delay.
Poorly managed investigations can create legal risk – see our guide on unfair workplace investigations in Australia.
4. Maintain Confidentiality
Only share details with those who need to know. Confidentiality protects staff and prevents workplace gossip, which can inflame tensions.
5. Take Action Where Needed
If the complaint is substantiated, act proportionately. This may involve training, mediation, counselling, or disciplinary measures. The response should show that the business is committed to maintaining a safe, respectful workplace.
Sometimes complaints lead to disciplinary action; learn more about when employment can be terminated for minor misconduct.
6. Always Comply with Fair Work Act Obligations
The Fair Work Act 2009 (Cth) sets out a number of obligations relevant to workplace complaints:
General Protections (Adverse Action): Employers must not take adverse action against an employee because they made a workplace complaint. This includes dismissing them, altering their position to their detriment, or treating them less favourably.
Workplace Health and Safety Duties: Employers must ensure a safe workplace, which extends to psychological safety. Failing to respond to complaints about bullying, harassment, or psychosocial hazards may breach these duties.
Right to a Support Person: If an employee is invited to a meeting that may result in disciplinary action, they have the right to request a support person.
Fair Process in Investigations: Investigations must be conducted fairly to avoid claims of unfair dismissal or breach of procedural fairness.
These obligations mean that complaints should never be brushed aside. Instead, they should be managed through a clear, documented process that aligns with both company policy and the requirements of the Fair Work Act.
Learn how complaint handling aligns with the Fair Work Act in Workplace Bullying and Reasonable Management Action.
What Employers Should Avoid
1. Don’t Ignore or Downplay Complaints
Failing to act can expose you to claims that you failed in your duty of care. It also damages trust in management.
2. Don’t Retaliate Against Complainants
Taking disciplinary action, reducing hours, or dismissing an employee shortly after they make a complaint may be treated as adverse action.
3. Don’t Rush or Delay the Process
Long delays or rushed investigations erode confidence in the process and may be seen as a failure to provide a safe workplace.
Legal Tip: Ensure procedural fairness throughout the process. In Jimenez v Accent Group T/A Platypus Shoes (2016), a store manager was dismissed for misconduct, but the FWC found the employer’s inconsistent process unfair. Despite a valid reason, the dismissal was ruled unreasonable, and compensation was awarded.
Lesson for employers: Even when serious misconduct exists, a flawed or inconsistent process can turn an otherwise valid dismissal into an unfair dismissal claim.
4. Don’t Pre-Judge the Outcome
Go into the process with an open mind. If it appears that management has already decided the outcome, employees may challenge the fairness of the investigation.
5. Don’t Breach Confidentiality
Talking about the complaint with uninvolved staff, or failing to manage workplace gossip, can escalate the problem and create further claims.
Real-Life Example
An employee at a medium-sized business lodged a complaint about workplace bullying by a supervisor.
Management initially ignored the complaint, assuming it was personality conflict. A month later, the employee went on stress leave The employer then launched a rushed investigation but was criticised for not giving the complainant an equal chance to be heard.
The employee then lodged a general protections (adverse action) claim with the Fair Work Commission, arguing the business failed to act on their concerns.
The case settled, but the business incurred significant legal costs and reputational harm. Had the employer acknowledged the complaint early, documented their process, and engaged an independent investigator, the risk of legal action would have been significantly reduced.
Employers should also ensure they have strong anti-bullying and harassment policies and procedures in place to support a safe workplace.
Frequently Asked Questions (FAQs)
What types of workplace complaints should employers investigate?
All complaints should be acknowledged, even informal ones. Issues involving bullying, harassment, discrimination, safety, or breaches of policy should always be investigated.
The key is to act early, investigate fairly, and maintain documentation and confidentiality. Legal advice from employment lawyers, such as Prosper Law, can help you navigate complaints processes and protect your business.
Allegations of harassment are particularly sensitive – our overview of sexual harassment law in Australia explains employer obligations.
Can we handle a workplace complaint internally?
Yes, but for sensitive or complex matters, consider engaging an external investigator to ensure impartiality and credibility.
Employers must also manage mental health risks – see our guide to psychosocial hazards at work and employee rights for more insight.
What if a complaint is found to be unsubstantiated?
You should still document the investigation and communicate the outcome respectfully. Avoid treating the complainant unfavourably for raising the issue.
Are we legally required to have a complaint process?
While not always mandatory, having a clear and accessible process helps demonstrate compliance with workplace health and safety obligations.
For employers, workplace complaints are both a challenge and an opportunity. Handled poorly, they can lead to adverse action claims and costly disputes. Handled well, they strengthen workplace culture, reduce risk, and demonstrate fairness.
When should employers seek legal advice?
Seek advice if the complaint involves discrimination, bullying, or adverse action, or if disciplinary action or dismissal may result.
Employers should also familiarise themselves with practical compliance – check out The Fair Work Act: A Guide for Employers to understand your legal obligations under Australian law.
