Complaints handling policy template and guide

Complaints are an inevitable part of doing business. But mishandling them can damage your reputation, create legal risks and cost you valuable customers or employees. The key to turning these challenges into opportunities is having a clear, structured complaints handling policy.

Whether you’re a business owner, a manager or an HR professional in Canada, our downloadable policy template provides the framework you need to address concerns with confidence and professionalism. It’s designed to help you build trust, ensure compliance and protect your business from unnecessary risks.

What is in this complaints handling policy template?

When you download our template, you get more than just a document. You’ll receive a clear, adaptable template that outlines a fair and transparent process for handling complaints. It covers everything from how employees or customers can submit a complaint to the steps for investigation, resolution and documentation.

What is a complaints policy?

A complaints policy is a formal written procedure that guides how a business receives, assesses and resolves complaints. Think of it as a playbook for turning a negative situation into a positive outcome. It ensures that concerns from employees, customers or stakeholders are handled with fairness, transparency and accountability.

A good policy provides confidence that the process is professional and consistent for all stakeholders in the process. While all Canadian organizations benefit from having a complaints policy, businesses in federally regulated sectors like banking and insurance have stricter, legally binding obligations to follow.

Why businesses need a complaints handling policy

Having a formal policy isn’t just a matter of good practice, it’s a smart business decision. A clear complaints policy can:

• Protect your reputation: It shows that your business is responsive and takes concerns seriously, which can prevent negative reviews or public disputes.
• Build trust: A transparent and fair process reassures customers and employees that their voices are heard, strengthening their loyalty and confidence.
• Reduce legal risks: A consistent, documented process can help you demonstrate due diligence in the event of a legal challenge, protecting your business from costly disputes.

Most importantly, it provides a clear, consistent process for your team to follow, preventing complaints from being mishandled or escalating unnecessarily.

Legal requirements in Canada

In Canada, the legal framework for complaints handling varies by industry. Federally regulated financial institutions, for example, must comply with detailed guidelines set by the Financial Consumer Agency of Canada (FCAC).

For other sectors, obligations are typically outlined in provincial consumer protection laws and workplace regulations. While not all businesses are required to have a formal policy, adopting a structured approach that aligns with Canadian standards is considered a best practice. This helps you go beyond minimum legal standards to ensure fairness and accessibility for all.

How to make a complaints policy

Creating a complaints handling policy for your Canadian workplace involves defining a few key elements. You need to outline the scope of complaints, the step-by-step process for submitting and investigating them, and the timelines for resolution.

The most effective policies also stress the importance of documenting outcomes, tracking complaint trends and ensuring the policy is accessible to all employees and customers.

Rather than starting from scratch, you can download our completed policy and use it as a robust foundation for your own.

Defining scope and responsibilities

Your policy should clearly define what types of complaints it covers. This could include workplace grievances, service-related complaints from customers or regulatory concerns. It should also assign clear responsibilities: Who receives complaints? Who investigates them? Who signs off on the final resolution? This ensures everyone knows their role and the process flows smoothly.

Process for receiving and investigating complaints

The policy should outline exactly how a complaint can be submitted—whether it’s in writing, online or verbally. It should also describe how receipt of the complaint is acknowledged and the steps for a thorough investigation. Timelines for both acknowledgement and investigation are crucial and should align with Canadian best practices to show timeliness and commitment.

Resolution, documentation and follow-up

This section is all about closing the loop. Your policy should detail how the resolution is communicated to the complainant, how all records are stored for future reference, and how unresolved issues can be escalated. Following up with the complainant to ensure satisfaction is also a valuable step that demonstrates your commitment to a positive outcome.

Complaints handling policy template

Here’s a preview of the letter template you can download and customize based on your requirements:

Best practices for complaints handling in Canada

An effective complaints handling policy goes beyond a simple procedure. Based on Canadian guidelines, it should be built on a few core principles: fairness, accessibility, confidentiality, timeliness and accountability. By embracing these principles, you can turn your policy into a tool for continuous improvement.

Fairness and accessibility

Your policy should be designed to ensure that all individuals can make a complaint without barriers. This includes providing accommodations for people with disabilities or those with language needs, ensuring everyone has an equal opportunity to have their voice heard.

Confidentiality and protection

Maintaining confidentiality is critical throughout the entire process. Your policy should protect both the person making the complaint and any employees involved. It’s also vital to include a clear statement that prohibits any form of retaliation against individuals who raise a complaint.

Continuous improvement

A complaints policy isn’t a one-and-done document. To be effective, you should regularly review complaint trends, update your procedures as needed and use the insights you gather to improve your services, processes or workplace culture.

Industry-specific requirements

While our template provides a solid foundation, some industries face more stringent complaint-handling obligations under federal law. Banking, insurance and telecommunications are examples of sectors where organizations must comply with detailed, sector-specific rules.

For example, the Financial Consumer Agency of Canada (FCAC) provides clear guidelines for financial institutions. If your business falls into one of these categories, you should review the relevant regulatory requirements. However, even if you are not in a regulated industry, adopting a structured complaints-handling practice is a smart way to align with Canadian standards and show you’re a trustworthy business.

Download our complaints policy template

Are you ready to create a clear, professional and compliant complaints handling process for your business? Our downloadable policy template provides the framework you need to get started right away.

Stop worrying about potential disputes and start building a foundation of trust and accountability. Download the template today and take the first step toward a more professional and reliable complaints handling system.

The information in this template is current as at 1 August 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The content is general information only, is provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this template. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this template.