Handling grievances in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
Handling a workplace grievance well is less about following a perfect script and more about acting promptly, consistently and in good faith. When an employee raises a concern, how you respond in the first 48 hours often determines whether the matter resolves quickly or escalates into a formal dispute.
What counts as a grievance
A grievance is any workplace concern an employee raises formally or informally — a conflict with a colleague, concerns about workload or management behaviour, perceived unfairness in a decision, or something more serious like bullying, harassment or discrimination.
Not every complaint is a grievance in the formal sense. An employee venting frustration in passing is different from someone putting a concern in writing and asking for it to be addressed. Your grievance procedure should define that threshold clearly so both managers and employees know when the formal process begins.
Some matters carry legal weight beyond ordinary employment disputes. Complaints touching on bullying (under the Fair Work Act), sexual harassment, or discrimination under state and federal anti-discrimination law sit in a different category and may require specific steps, including notification to relevant parties and, in some cases, mandatory external reporting.
Have a written procedure before you need one
A grievance procedure does not need to be long, but it does need to exist before a complaint lands on your desk. At minimum it should cover:
- how an employee raises a grievance (verbally, in writing, or both)
- who receives it and who handles it if there is a conflict of interest
- the timeframes for acknowledgement and response
- how the investigation or resolution process works
- how the outcome is communicated and documented
- the right to appeal
Under the National Employment Standards, employees have the right to have a support person present during discussions about a complaint — particularly where the outcome could affect their employment. Your procedure should acknowledge this.
Keep the procedure in your employee handbook and make sure managers understand it. A policy no one has read is not a policy.
Responding when a grievance is raised
Acknowledge the complaint promptly — within one or two business days is reasonable. This does not mean you have resolved anything; it means the employee knows their concern has been received and will be taken seriously.
Gather the facts before forming any view. That means speaking separately to the employee who raised the concern, any named parties, and any relevant witnesses. Keep those conversations confidential to the extent possible. Document what is said, but keep notes factual — your notes may be disclosed later if the matter goes to the Fair Work Commission or another external body.
Maintain procedural fairness throughout. If someone is the subject of a complaint, they are entitled to know what is being alleged and to have an opportunity to respond. This is not a technicality — procedural fairness failures are one of the most common reasons workplace outcomes are overturned on appeal.
Where the grievance involves a manager, the matter should be escalated above that manager. Where it involves a senior leader or the owner of the business, consider appointing an independent external investigator.
Managing the process fairly for everyone
Both the person who raised the grievance and the person named in it need to understand the process and feel it is being conducted impartially. That requires:
Confidentiality. Share information only with those who need it. Gossip damages trust and can expose you to claims of victimisation.
No retaliation. Treating an employee adversely because they raised a grievance — reduced hours, exclusion from meetings, changed duties — is a serious problem under the Fair Work Act and potentially under anti-discrimination law. Make this clear to managers.
Reasonable timeframes. Investigations should not drag on. For straightforward matters, aim to reach an outcome within two to three weeks. Complex investigations may take longer, but communicate that clearly and keep both parties updated.
A written outcome. Whatever the finding, put it in writing. The employee who raised the concern should receive a clear explanation of what was found and what, if anything, will happen next. You are not always obliged to share the details of any action taken against a third party, but you should confirm the matter has been addressed.
When internal resolution does not work
If the grievance cannot be resolved internally, the employee may take the matter externally. Depending on the nature of the complaint, that could mean the Fair Work Commission (for disputes about the application of an award, enterprise agreement or the NES, or for bullying applications), the Australian Human Rights Commission, or a state equal opportunity or anti-discrimination body.
If a dispute is headed in that direction, take legal advice early. Understanding the likely jurisdiction and the applicable procedural requirements before a formal application is lodged gives you a much better position to respond or negotiate a resolution.
Keeping thorough records throughout your internal process — what was raised, how it was investigated, what was decided and why — is your best protection if the matter is later scrutinised externally.
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