MPs called on defence officials yesterday to investigate claims that redundancy fears deter staff from making complaints about genuine grievances.
The Commons defence committee said it was "unacceptable" that servicemen and women are shying away from taking action because they are afraid of the consequences of making a complaint.
The committee said it was "concerned and disappointed" that staff do not always have confidence to pursue complaints through official channels.
It called on the government to axe the service complaints commissioner role, which cannot actively investigate allegations.
It should be replaced with an armed forces ombudsman that could hold the services to account, the committee said.
It also found an increased number of complaints of bullying, harassment, improper behaviour and victimisation the commissioner has received.
But allegations about sexual harassment remain low, despite evidence suggesting it may be more widespread.
Attacks such as yesterday's horrific murder in Woolwich didn't happen before the 'war on terror.' It's time we recognised the consequences of the conflicts we've unleashed