July 24, 2024

Workplace Complaints: The Importance of Investigating Thoroughly

At management level, it’s accepted that investigating complaints is important. But how often are you communicating this importance to your frontline staff in order to bolster the lines of communication?


Not investigating workplace complaints thoroughly can have serious consequences. 

Legal and Financial Repercussions

Organisations may face legal consequences, including fines and damages, if they fail to investigate complaints, especially if the complaints are related to harassment or discrimination. Addressing complaints promptly can prevent issues from escalating into more significant problems, including legal disputes or widespread employee dissatisfaction.


Breaches may result in:


Financial Penalties: Businesses can face significant fines for breaches of workplace laws. The Fair Work Ombudsman can issue on-the-spot fines and take legal action, which can result in higher penalties.


Compensation Orders: Courts can order businesses to pay compensation to employees who have suffered loss due to the business's non-compliance. 


Enforceable Undertakings: A business may be required to enter into an enforceable undertaking, which is a legally binding agreement with the Fair Work Ombudsman to rectify the breach and prevent future occurrences.


Legal Costs: If a matter goes to court, the business may be liable for significant legal costs.


Revocation of Licenses or Permits: In some cases, non-compliance can lead to the revocation of essential licenses or permits required to operate the business. 


Injunctions: Courts can issue injunctions to prevent ongoing breaches or to require specific actions to be taken by the business. 


Back-Payment Orders: Businesses may be ordered to back-pay employees for underpayments, which can include interest and additional penalties. 


Individual Liability: Company directors and other individuals involved in the management of the business can be held personally liable for breaches of workplace laws.



Workplace Morale and Productivity

Not addressing complaints can lead to a decline in employee morale and productivity. Employees who feel their concerns are not taken seriously are less likely to be engaged and productive. When employees see that their concerns are taken seriously, it builds trust in the organisation and its leadership.


Damage to Reputation

A company's reputation can suffer if it becomes known that they do not take complaints seriously or fail to address them properly. This can lead to a loss of trust among current and potential employees, clients, and the public. Conversely, an organisaion known for its fair and thorough handling of workplace complaints is likely to have a better reputation, which can be beneficial for attracting and retaining top talent.


Compliance Issues

Organisations are required to comply with various laws and regulations. Failure to investigate complaints properly can result in non-compliance, which can have further legal implications.


Increased Turnover

Employees may leave their role if they feel their complaints are not addressed, leading to increased turnover and associated costs for recruitment and training.


Safety Concerns

Not investigating complaints can lead to unresolved safety issues in the workplace, which can have serious consequences for employee well-being.


Reduction in Diversity and Inclusion

Workplace discrimination in Australia disproportionately affects diverse cohorts, including racial and ethnic minorities, women, LGBTQ+ individuals, people with disabilities, and those from different cultural and religious backgrounds. Addressing these disparities requires concerted efforts from employers, policymakers, and society to foster inclusive and equitable work environments. Properly handling complaints related to discrimination or harassment is essential for promoting a diverse and inclusive workplace where all employees feel safe and respected.


Investigating Workplace Complaints: Best Practice

Best Practices for Investigating Complaints

These practices help create a workplace where employees feel respected and valued, and where issues are handled with the seriousness and attention they deserve.



Investigating complaints is not merely a procedural necessity but a fundamental component of building a positive and productive workplace culture. By fostering trust, enhancing morale, mitigating risks, identifying systemic issues, and promoting continuous improvement, businesses can ensure a thriving and dynamic work environment. 


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