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Workplace conflict is something that most businesses will encounter at some point – whether you’re running a small startup or managing a growing team. In fact, knowing how to deal with conflict in the workplace isn’t just about preventing arguments; it’s about creating a healthier, more productive business environment where everyone can thrive. Unresolved conflict can impact morale, reduce productivity, and even result in costly legal issues if left unchecked.
If you’re wondering how to handle conflict in the workplace or want effective methods to resolve workplace disputes, you’re in the right place. In this guide, we’ll cover practical workplace conflict resolution strategies tailored for Australian businesses, explain the legal requirements you need to know, and share actionable steps you can use to resolve employee conflict – no matter your role. Let’s dive into how to manage workplace conflict the right way, so your business can focus on what really matters: growth and success.
What Is Workplace Conflict?
Let’s start with the basics. Workplace conflict refers to any kind of disagreement or tension between colleagues, teams, or managers and staff at work. This can range from minor misunderstandings over tasks to serious disputes about work conditions, responsibilities, or even interpersonal behaviour.
Examples of conflict in the workplace include:
- Two employees disagreeing about how to approach a project
- Mismatched expectations around roles or delivery of work
- A manager and team member not seeing eye-to-eye on communication
- Misunderstandings that escalate into personal grievances
- Allegations of bullying or harassment (which also have legal implications)
Conflict isn’t always negative – handled correctly, it can actually lead to valuable discussions, innovation, and improved teamwork. The key is managing and resolving workplace conflict proactively, before it becomes a more serious issue.
Why Is Resolving Workplace Conflict So Important?
Dealing with conflict in the workplace isn’t just about keeping the peace; it’s also critical for:
- Staff wellbeing: Ongoing conflict is stressful, can cause absenteeism, and can increase turnover.
- Productivity: Teams in conflict are less effective and often miss deadlines or targets.
- Culture and morale: Unresolved issues can poison workplace culture, harming engagement and customer experience.
- Legal compliance: Some workplace conflicts – such as bullying, discrimination, or harassment – may trigger legal obligations under Australian law. Failing to handle these can lead to Fair Work claims or legal penalties.
What Causes Workplace Conflict?
It’s worth understanding what typically leads to workplace disputes. Common causes include:
- Poor communication or lack of clarity around expectations
- Differing values, backgrounds or work styles
- Unclear job roles or overlapping responsibilities
- Workload pressures, tight deadlines, or resource constraints
- Personality clashes or differing communication preferences
- Ineffective management or lack of leadership
Knowing what’s behind a conflict is the first step in resolving it effectively.
How To Deal With Conflict In The Workplace: Step-By-Step
If you’re facing conflict in your team, here’s how to resolve workplace conflict in a clear, structured way:
1. Address The Issue Early
Don’t ignore workplace disputes in the hope they’ll disappear on their own. Often, issues left unaddressed will escalate, making them far harder (and more costly) to resolve. Encourage staff to speak up early or have a process for reporting concerns, whether to a supervisor, manager, or HR.
2. Understand The Perspectives Involved
Whether you’re a manager or a colleague, take time to listen to all sides. Ask open questions and avoid making assumptions. Create a confidential, safe space for employees to explain their viewpoint. This is essential for fair and effective conflict resolution.
3. Stay Professional and Respectful
Focus on facts and behaviours – avoid personal attacks or emotional outbursts. Remind everyone of the need for respectful communication. Managers should model this behaviour at all times.
4. Identify The Core Problem
Sometimes, a disagreement is just a symptom of a deeper issue (like unclear job roles or excessive workload). Work together to pinpoint the real cause of tension rather than just addressing surface-level symptoms.
5. Find Common Ground and Shared Goals
Conflict resolution is about collaboration. What do both parties want? Is there room for compromise? Emphasise the team’s shared goals – often, reminding everyone of the bigger picture helps people move past their own frustrations.
6. Explore Solutions and Agree on Next Steps
Brainstorm practical solutions together. Discuss possible changes to work processes, clarification of roles, or communication improvements. Once a resolution is found, ensure all parties agree on the actions, and document the agreed steps where appropriate.
7. Follow Up and Support Ongoing Improvement
Check in with those involved after the conflict has been addressed. Is the solution working? Is there anything further needed? Ongoing communication helps prevent issues from re-emerging.
How To Resolve Conflict In The Workplace As A Manager
If you’re a manager or business owner, you have specific responsibilities when handling workplace disputes. Your actions set the tone for your team – and, in some cases, you may be legally required to address certain conflicts (such as harassment or discrimination) under employment law.
Here’s what you can do as a manager:
- Have clear workplace policies: Make sure your staff know the process for raising concerns or complaints. Consider implementing a workplace policy for harassment and anti-discrimination.
- Act impartially: Approach conflicts neutrally, hearing both sides. Avoid taking action based solely on one person’s version of events.
- Use structured processes: Follow workplace investigation guidelines and keep accurate records (this may be crucial if a dispute leads to formal proceedings).
- Consider mediation: For persistent issues, a neutral third party (internal or external mediator) can help. Mediation is often a highly effective method to resolve workplace conflict without escalation.
- Model good behaviour: Demonstrate respect, open communication, and approachability. Staff are more likely to report problems – and less likely to let them escalate – if they trust you will listen and act fairly.
What Are The Common Methods To Resolve Workplace Conflict?
There are several well-recognised strategies for conflict resolution in the workplace. The right strategy depends on the nature of the dispute, your workplace culture, and the severity of the issue:
- Direct discussion: Encourage the parties involved to address the issue privately and informally wherever possible, before escalating.
- Mediation: Bring in a neutral party (manager, HR, or an external mediator) to help the parties communicate and find common ground.
- Formal complaint process: Use a documented complaints or grievance procedure. This is especially important for more serious conflicts, including bullying, harassment, or discrimination.
- Written agreements: If a resolution is reached, it can be formalised in a short written agreement or email, so both parties are clear on what’s been agreed (especially for ongoing working relationships).
- Legal advice: For serious allegations or disputes (e.g., those involving potential breaches of the Fair Work Act or other laws), seek specialist employment law advice to protect your business and ensure compliance.
How To Resolve Conflict Between Two Employees At Work
If you’re a manager, HR professional, or owner, you may need to act as a mediator when two employees are in conflict. Here’s a step-by-step approach:
- Meet with each person individually to understand their concerns and to reassure them the matter will be treated confidentially and fairly.
- If appropriate, bring both parties together for a facilitated discussion, where ground rules are set (e.g., respect, no interruptions).
- Ask each employee to share their point of view and listen actively, clarifying what is being said instead of making assumptions or taking sides.
- Focus on issues, not personalities – keep the conversation solution-focused and professional.
- Agree on specific actions or behavioural changes, and document them if needed.
- Monitor progress and offer ongoing support to ensure the issue is genuinely resolved and does not resurface.
How To Avoid Conflict In The Workplace
While not all conflict is avoidable, you can reduce the likelihood and impact of disputes in your business by:
- Setting clear expectations: Make sure all employees know their roles and responsibilities, as well as workplace policies.
- Promoting open communication: Encourage staff to voice concerns early and support a culture where feedback is welcomed.
- Leading by example: Model respectful behaviour and fairness in management decisions.
- Offering training: Host workshops on communication, teamwork, cultural awareness, and conflict management.
- Ensuring legal compliance: Have up-to-date employment contracts and workplace policies, and review these with a qualified employment lawyer if unsure.
Key Legal Requirements For Managing Workplace Conflict In Australia
As a business owner or employer, you have certain legal obligations under Australian law when it comes to workplace conflicts. These include:
- Fair Work Act 2009: Governs unfair dismissal, adverse action, bullying, and harassment claims. You must handle these in accordance with Australian law to prevent exposure to claims.
- Workplace Health and Safety (WHS) laws: Require a safe work environment, free from bullying, harassment and discrimination.
- Anti-discrimination legislation: Federal and state laws prohibit discrimination on grounds such as sex, race, disability, or age, and require swift action if complaints arise.
- Procedural fairness: If taking disciplinary action or terminating employment as a result of a workplace dispute, ensure you follow correct process – including providing opportunity for the employee to respond.
For more information, see our guide to adverse action in the workplace and WHS laws for business owners.
What Legal Documents Or Policies Can Help?
Having the right employment agreements and policies in place from the start is a great way to manage and resolve conflict effectively. Below are some key documents to consider:
- Employment Agreement: Clearly outlines rights, responsibilities, and dispute resolution processes for all employees.
- Anti-Discrimination & Harassment Policy: Sets expectations for respectful behavior and provides a framework for complaints.
- Workplace Policy/Staff Handbook: Includes guidance on addressing workplace grievances, reporting procedures, and steps for conflict resolution.
- Conflict Of Interest Policy: Clarifies how to raise concerns about potential or real conflicts, and how the business will respond.
- Deed Of Termination (if relevant): Outlines an agreed resolution for ending an employment relationship or commercial partnership, minimising disputes.
Tip: Not every business will need all of these documents, but most will need at least a solid employment agreement and an up-to-date workplace policy. Reviewing your documentation regularly – and updating it as your team grows – will help keep you compliant and ready to handle any workplace conflict.
How To Encourage A Conflict-Positive Culture
“Conflict-positive” doesn’t mean encouraging arguments – instead, it’s about fostering an environment where differences are discussed openly, respectfully, and lead to better outcomes. You can encourage this by:
- Normalising feedback and open dialogue
- Rewarding inclusive team behaviour
- Training managers in active listening and mediation skills
- Ensuring leadership addresses concerns transparently and constructively
- Highlighting that conflict, when handled well, can be a springboard for growth
When Should You Escalate Or Seek Expert Help?
Some conflicts can and should be resolved internally. However, you should consider external mediation or professional legal advice if:
- The dispute involves possible breaches of employment law, bullying, harassment, or discrimination
- The situation is highly emotional or risks escalating into formal legal claims
- Previous attempts at internal resolution have failed
If in doubt, timely legal advice can protect your business and provide reassurance that you’re acting lawfully. Our employment law experts can advise on resolving conflict and preventing future disputes.
Key Takeaways: Workplace Conflict Resolution Strategies
- Workplace conflict is natural – address it early to prevent escalation and legal risks.
- Clear policies, trained managers, and open communication are your best tools for avoiding and managing conflict at work.
- A structured, fair, and confidential approach helps resolve both minor disagreements and serious disputes.
- Legal obligations under the Fair Work Act and anti-discrimination laws mean employers must act on certain workplace disputes – or risk significant consequences.
- Key documents like Employment Agreements, Workplace Policies, and Anti-Discrimination Policies help prevent and resolve conflict.
- For complex or escalating conflicts, seek expert legal advice or external mediation early.
If you need guidance and legal support in resolving workplace conflict, or want help drafting the right policies and agreements for your business, contact Sprintlaw at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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