Workplace Investigations

No business owner wants to deal with workplace grievances, but the reality is they happen in every industry. From bullying allegations to safety breaches, complaints are a normal part of employing people. What matters most is how you handle them.

A well-run investigation doesn’t just resolve a complaint, it protects your business, reinforces your culture, and builds trust with your team. A poorly handled one however, can fuel conflict, create legal risk, and damage your reputation as an employer.

When it comes to workplace investigations, structure, fairness, and transparency are non-negotiable.

Why independent investigations matter

It’s tempting to manage complaints internally. After all, who knows your business better than you? But internal investigations often struggle with real or perceived bias. Employees may not trust the process, and managers may feel conflicted about investigating their own peers.

That’s where an independent investigation comes in. By appointing an external investigator, you remove bias, bring neutrality to the process, and show employees you’re serious about fairness. This independence is especially important in sensitive cases like bullying, harassment, or discrimination, where trust in the process is critical.

The risks of getting it wrong

Under the Fair Work Act 2009 (Cth), employers have a duty of care to provide a safe workplace. Failing to investigate complaints properly can expose you to:

· Unfair dismissal claims if disciplinary action is taken without a fair process.
· General protections claims if an employee feels they’ve been treated adversely for raising a complaint.
· Work health and safety breaches if risks like bullying or harassment aren’t addressed.

Beyond compliance, mishandled investigations erode employee trust. Staff who feel ignored or unfairly treated are more likely to disengage, resign, or escalate the issue to external bodies like the Fair Work Ombudsman or SafeWork.

Why does this matter? Because SafeWork reported over 12,000 serious mental health claims in 2020–21, with a median compensation of more than $55,000 per claim. The Fair Work Ombudsman is also seeing rising disputes where complaints weren’t handled properly showing there is a real cost of getting it wrong.

mental health article nov22 enews
    Source: safeworkaustralia.gov.au


What a fair investigation looks like

The good news is that you don’t need a law degree to run a sound investigation, but you do need a structured process. At minimum, every investigation should:

1. Act quickly: Don’t let issues linger. Start the process as soon as a complaint is made.
2. Follow clear policies: Have documented procedures that outline how grievances are handled. This gives employees confidence and protects you legally.
3. Apply procedural fairness: Give all parties the chance to share their side, provide evidence, and respond to claims.
4. Keep it confidential: Limit information to those directly involved to prevent gossip and protect reputations.
5. Document every step: From the initial complaint to the final outcome, keep detailed records. They are your best defence if challenged.
6. Base decisions on fact, not assumption: Conclusions should be supported by evidence, not hearsay.

The culture connection

Investigations aren’t just about resolving complaints, they’re a chance to reinforce your workplace culture. When people see that issues are handled fairly and consistently, it strengthens trust in leadership and sets a clear benchmark for behaviour.

Handled well, an investigation sends the message: “We take your concerns seriously. We value respect. And we hold everyone accountable to the same standard.”

Handled poorly, it does the opposite. Employees may conclude that raising issues is pointless or even risky, which only drives problems underground.

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When to seek external support

Not every complaint needs a full independent investigation. But if the issue involves serious allegations, senior staff, or potential legal exposure, external expertise is often the safest option. A neutral investigator brings credibility, experience, and the reassurance that the process will hold up under scrutiny.

Think of it as insurance: a small upfront investment that protects you from much larger costs (both financial and cultural) down the track.

The bottom line for business owners

Workplace grievances are part of employing people, but they don’t have to become a crisis. With a clear process, procedural fairness, and the right level of independence, you can resolve issues quickly, protect your business, and strengthen your culture in the process.

At Jessie Grace, we remind leaders that investigations aren’t about “catching people out.” They’re about protecting everyone, the complainant, the respondent, and the business itself.

Yes, but only if you’ve followed a fair process. This means setting clear expectations, giving feedback, providing a genuine opportunity to improve, and documenting every step. Terminations that skip this process often get overturned at the Fair Work Commission.

Start by identifying whether the absences are authorised (such as sick leave) or unauthorised. If absences are excessive or patterns emerge, meet with the employee, document the discussion, and explore underlying causes. If the issue persists, you may escalate to formal warnings or a performance management process.

Poor performance relates to not meeting role expectations (e.g. quality or output), while misconduct involves breaches of behaviour or conduct standards (e.g. theft, harassment, safety breaches). The processes differ: misconduct often triggers disciplinary action, while poor performance requires a performance improvement process.

Not legally in every case, but warnings are a key part of showing procedural fairness. For performance issues, written warnings are best practice. For serious misconduct (e.g. theft, assault), you may move to termination without prior warnings — but only after a fair investigation.

Failure to follow lawful and reasonable directions may amount to misconduct. Employers should meet with the employee, clarify expectations, and document the refusal. If it continues, disciplinary action (including termination) may be justified, but ensure you follow due process.

Rushing to termination without a fair process exposes you to unfair dismissal, general protections, or discrimination claims. Even if the substantive reason is valid, skipping procedural fairness can make the dismissal unlawful. The result being a claim that could cost up to 6 months of the employees wages (more if the dismissal deemed to be discriminatory). Taking the time to follow process protects both the business and its culture.