32% of Australian employers report rise in workplace grievances: Report

Australian employers are reporting an increase in workplace grievances and formal complaints, with 32% saying internal grievances had risen over the past 12 months, according to the Australian HR Institute's (AHRI) Quarterly Australian Work Outlook.

A further 30% of employers reported an increase in formal claims or complaints, highlighting a rise in workplace concerns being managed both internally and through formal processes.

The findings come after the Fair Work Commission recorded 53,617 lodgements in the 2025–2026 financial year, its highest number on record.

More complaints reported

AHRI said Fair Work Commission data does not capture the full extent of workplace disputes, as employers are also dealing with complaints and grievances within their organisations.

"For HR professionals, this matters because grievances, claims, and complaints do not only affect external dispute-resolutions systems or regulators," the report read.

"They also add to the day-to-day workload of HR teams, who are often responsible for triage, early resolution, documentation, investigation support, manager coaching, and employee communication."

The report also pointed to the role of line managers in dealing with workplace concerns, noting that organisations may need to strengthen managers' ability to handle employee issues.

"The rise in grievances should be a warning to employers that good people management cannot be treated as a soft skill," said Sarah McCann-Bartlett, CEO, AHRI.

"Managers are often the first people expected to deal with workplace problems. Giving them the skills and confidence to have difficult conversations early can be the difference between resolving an issue and watching it become a formal dispute,” she added.

Employee turnover remains low

The increase in grievances comes alongside relatively low employee movement across the Australian workforce.

Average annual employee turnover was 13.4%, remaining close to the survey's historic lows. Government data showed that 7.2% of employed Australians changed employer or business in the year to February 2026.

Employer confidence in workforce growth also fell to +33 in the September quarter, indicating a more cautious hiring environment.

"Workers are staying put and employers are thinking harder about every new hire. That creates stability, but it also creates a risk that organisations become too static at a time when they need new skills, fresh thinking and greater productivity," McCann-Bartlett said.

"For employers, the challenge is no longer simply how to retain people, but how to make sure a more stable workforce continues to develop, perform, and adapt."