What to Do When an Employee Raises a Complaint About Their Manager

When an employee raises a complaint about their manager, everything feels higher stakes. Managers hold power, shape culture, influence performance outcomes and often make key decisions that impact the employee day-to-day. So when something goes wrong in that relationship — communication, behaviour, fairness, workload, bullying, conflict, or perceived favouritism — the situation can become tricky very quickly.

Whether you’re operating under New Zealand’s Employment Relations Act or Australia’s Fair Work framework, the employer has a core obligation:
Take complaints seriously, handle them fairly, and act in good faith.

The challenge is doing this in a way that:

  • keeps everyone safe,
  • respects confidentiality,
  • preserves the integrity of the process,
  • supports both parties, and
  • reduces risk for the organisation.

Here’s a practical, plain-English guide to managing complaints about managers — calmly, fairly and confidently.

Step 1: Acknowledge the complaint and say thank you

Employees often sit with concerns for weeks — sometimes months — before speaking up. Bringing a complaint forward requires courage.

The first response should be:

  • calm
  • neutral
  • open
  • and deeply respectful

Try something like:
“Thank you for coming to me. I appreciate you raising this. I want to make sure we handle this properly.”

That sentence alone reduces defensiveness and signals safety.

Step 2: Stabilise the situation (immediate safety comes first)

Before jumping into process, check whether there are immediate risks, such as:

  • emotional distress
  • health and safety issues
  • threats or aggressive behaviour
  • conflicts escalating
  • retaliation risk
  • power imbalance concerns

If there is any risk, take practical steps:

  • temporary separation
  • alternative reporting line
  • temporary remote work
  • wellbeing support

This isn’t about judgement or blame — it’s about safety.

Step 3: Clarify the nature of the complaint

Many complaints about managers fall into one of four categories:

  1. Communication or style issues
  2. Behaviour concerns
  3. Fairness or workload issues
  4. Potential bullying, harassment or discrimination

Not every issue is misconduct. Not every issue is bullying. Not every concern requires a full investigation.

But you can’t choose the right pathway unless you understand the complaint clearly.

Use questions like:

  • “Can you tell me what happened, step by step?”
  • “How did this impact you?”
  • “Has this happened before?”
  • “What outcome are you hoping for?”

Take notes. Listen deeply. Stay neutral.

Step 4: Explain what will happen next

Employees want to know:

  • Will this be formal or informal?
  • Will their manager be told?
  • Who will know about this?
  • How long will it take?
  • Are they protected from retaliation?

Give clarity, even if the answer is:
“I need to consider the right process, but I will update you by tomorrow.”

Silence breeds anxiety.
Clarity creates trust.

Step 5: Choose the right process (informal, facilitated, or formal)

This is where many employers go wrong. The process must match the complaint — not overreact or underreact.

Option 1: Informal resolution

Appropriate for:

  • communication issues
  • misunderstandings
  • personality clashes
  • minor behaviour issues

Tools may include:

  • coaching
  • mediation
  • facilitated conversation
  • resetting expectations

Option 2: Formal investigation

Required for:

  • bullying
  • harassment
  • discrimination
  • abuse of power
  • serious misconduct
  • repeated behaviour

This may be done internally (if you have the capability) or externally (if neutrality is essential).

Option 3: Hybrid approach

Sometimes you need:

  • a short factual assessment to determine severity, then
  • a decision about whether a full investigation is required

This is common and perfectly acceptable in both NZ and Australia.

Step 6: Communicate with the manager — fairly and confidentially

When a complaint involves a manager, it’s essential to:

  • give them the key information
  • be neutral
  • allow a support person
  • explain the process
  • avoid assumptions
  • avoid emotional framing

A manager hearing a complaint about themselves may feel shocked, embarrassed, angry or threatened.

Your role is to create calm, clarity and fairness for them too.

Step 7: Keep both parties updated throughout

A complaint process is stressful for everyone involved — not just the complainant.

Update both parties regularly, even when the update is simply:
“We are still working through this and expect to have more information soon.”

Lack of communication is the #1 reason complaints escalate.

Step 8: Make a fair, evidence-based decision

Whether informal or formal, your decision must be:

  • based on facts
  • supported by evidence
  • proportionate
  • considered through a fair process
  • clearly communicated

The outcome might be:

  • informal coaching
  • training
  • mediation
  • apology
  • behaviour expectations
  • performance management
  • disciplinary action
  • no further action (if unsubstantiated)

A fair process protects everyone — including the manager.

Step 9: Close the loop with dignity and clarity

Closing a complaint with a manager and employee requires:

  • kindness
  • clarity
  • respect
  • boundaries

Never leave people “hanging” or guessing the outcome.

Use clear language like:
“We have completed the process and here is what we found…”

You don’t need to share every detail with both parties — only what is appropriate, lawful and necessary.

Step 10: Support reintegration (this part is often forgotten)

If both individuals will continue working together, reintegration matters just as much as the process.

You may need to:

  • reset expectations
  • clarify roles and communication pathways
  • offer coaching
  • provide mediation
  • check in regularly

A lot of employers skip this step and wonder why tension returns.

One HR Unlocked client shared after using our reintegration guide:

“The way we reintroduced the manager and team member made all the difference. For the first time, it didn’t feel awkward or unresolved.”

A solid reintegration plan prevents repeat issues and protects the culture.

The bottom line

Complaints about managers are sensitive — but entirely manageable when you have the right structure.

Across New Zealand and Australia, the principles are the same:

  • listen
  • act in good faith
  • keep people safe
  • use fair process
  • match the process to the issue
  • communicate clearly
  • maintain neutrality
  • support both parties
  • uphold confidentiality
  • document well

Handled well, a complaint process can strengthen trust, improve leadership capability, and create a more respectful and transparent workplace.

If you want ANZ-ready complaint-handling templates, scripts, investigation guides and reintegration tools, HR Unlocked gives you the structure you need to manage issues confidently — without the consulting fees or legal jargon.

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