When an Employee Makes a Complaint, What Should HR Do?

Written by: Izz Murtada

Sooner or later, every workplace gets a complaint. An employee may say their manager is unfair. Someone may say a colleague is rude. Another may say they were not paid correctly. It can feel uncomfortable, but a complaint is not bad news. It is a chance to fix a problem before it grows bigger.

How HR handles that first complaint matters a lot. A calm and fair process builds trust. A careless one can hurt people, damage the company and even lead to legal trouble. Here is a simple guide to what HR should do, with help from the Employment Act 1955 (Act 265).

1. Receive the complaint with care

The first step is to listen. Find a quiet and private place. Let the employee speak without rushing them or arguing. Do not say things like “Are you sure?” or “That person would never do that.” The employee only needs to feel heard at this stage.

Ask the employee to put the complaint in writing if they can. If they find writing hard, HR can write it down and ask them to check and sign it. Note the date, the time and the names mentioned.

Tell the employee what will happen next. Be honest. Do not promise a result. You can only promise that the matter will be looked at fairly.

Also remember this. Under Section 81 of the Act, an employer must not stop or try to stop an employee from appearing before the Director General of Labour. So HR should never tell an employee “do not go to the Labour Department” or “keep this quiet.” Employees have the right to take certain matters further.

2. Gather the facts

Before speaking to anyone else, HR should collect the basic information. Look at things such as:

• The employment contract and company policies
• Attendance records, payslips or leave records, if the complaint is about pay or leave
• Emails, messages or notes related to the issue
• Names of people who saw or know about what happened

Keep an open mind. At this stage HR is only collecting facts. It is not choosing a side.

It also helps to decide what type of complaint it is. A complaint about unpaid wages is different from a complaint about bullying, and both are different from a complaint about sexual harassment. Each type may need a different way of handling.

3. Speak to the people involved

Next, HR should speak to the employee who complained, the person being complained about, and any witnesses. Speak to each person one by one. Do not put them all in the same room at the start.

Here are some simple rules for these talks:

• Ask clear and open questions, such as “Can you tell me what happened?”
• Do not lead the person to an answer
• Write down what each person says
• Give the person being complained about a fair chance to explain their side
• Remind everyone to keep the matter private

Section 14 of the Act is a good guide here. It says that an employer may take action for misconduct only “after due inquiry.” In simple words, the employer must look into the matter properly first. It cannot punish first and ask questions later.

4. Investigate fairly

A fair investigation means HR looks at the facts and not at feelings or office gossip. Here are a few points to keep in mind.

Stay neutral. The person leading the inquiry should not be a friend or a relative of anyone involved. If the complaint is about HR itself or about a very senior person, think about asking someone outside the company to help.

Be quick, but not careless. Do not let the complaint sit for months. Long waiting times make people lose faith. But do not rush so much that you miss important facts.

Protect the people involved. If it is needed, the employer may suspend the person being complained about while the inquiry goes on. The Act allows suspension for up to two weeks, and the employer must still pay at least half of the wages. If the inquiry finds no misconduct, the employer must return the full wages that were held back. This shows how much the law cares about fairness.

Keep proper records. Keep notes, statements and documents in a safe place. Good records protect both the employee and the company.

Take extra care with sexual harassment complaints. Part XVA of the Act says that when an employer receives a complaint of sexual harassment, the employer must inquire into it. If the employer refuses, the employer must tell the complainant in writing, with reasons, within thirty days. An employer may refuse only in certain cases, for example when the complaint was already inquired into and nothing was proven, or when it is not made in good faith. If the employee is not happy with the refusal, they can bring the matter to the Director General. If the Director General asks the employer to inquire, the employer must send a report within thirty days. HR should never ignore this kind of complaint.

5. Decide, act and follow up

Once the facts are clear, HR needs to make a decision. There are usually three outcomes.

• The complaint is proven. The company takes suitable action. Section 14 of the Act lists some options for misconduct, such as dismissal without notice, downgrading, or a lighter punishment. Suspension without wages must not be more than two weeks. For proven sexual harassment, Section 81C says the employer shall take disciplinary action against the employee involved.
• The complaint is not proven. HR explains this politely to the employee and tells them the reason. The employee should not be punished just for speaking up, unless the complaint was made in bad faith.
• The problem is partly solved. Sometimes the answer is training, a better policy, a change of team or a clear talk between two people.

After the decision, tell the employee who complained what the outcome is. You may not be able to share every detail, especially about another person’s punishment, but they should know the matter was taken seriously.

Do not stop there. Check in again after a few weeks. Ask, “Is everything better now?” Make sure the employee is not being treated badly for speaking up. Also ask what the company can learn. If the same type of complaint keeps coming up, the real problem may be a gap in policy or training.

If the complaint is about wages or other money owed, remember that the Director General of Labour has the power under Section 69 to inquire into and decide such disputes. It is always better for HR to solve these matters early and fairly inside the company.

Final thoughts

A good complaint process is simple. Listen well, collect the facts, hear every side, investigate fairly, make a decision and follow up. When employees see that their voices are taken seriously, they trust the company more and stay longer.

Many small and medium businesses do not have a full HR team, and handling a complaint can feel stressful and unclear. That is where Kita Strategies can help. As an HR company in Malaysia, we support businesses with HR policies, complaint handling steps, inquiry guidance and employment law matters, so you can deal with problems calmly and confidently. If you would like a friendly chat about how we can support your team, we would be happy to hear from you.