Resources
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.
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.
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.
Do I legally have to investigate every workplace complaint?
Not every gripe needs a full-blown investigation, but you can’t ignore complaints altogether. Allegations of bullying, harassment, discrimination, or safety breaches trigger a duty of care under the Fair Work Act and WHS laws.
Failing to investigate properly exposes the business to unfair dismissal, general protections, or even workers’ compensation claims. For lower-level issues, an informal resolution might be enough but once the complaint involves serious misconduct or risk to health and safety, a structured investigation is essential.
Can I run a workplace investigation myself as a manager or business owner?
You can, but it comes with risk. Internal investigations often suffer from bias or the perception of bias, particularly if the manager knows the parties involved.
Employees may not trust the process if they feel it’s being handled “in-house.” In sensitive cases, such as allegations against senior staff or matters involving bullying or harassment, appointing an external investigator provides neutrality and credibility.
Even if you run the process internally, you must follow a clear, fair, and documented procedure.
What happens if I get a workplace investigation wrong?
A botched investigation is worse than no investigation at all. If an employee is dismissed without procedural fairness, they may succeed in an unfair dismissal claim.
If an employee feels targeted for raising a concern, you could face general protections claims. On top of that, mishandled investigations erode trust and culture, driving disengagement and turnover.
From an HR perspective, the reputational damage can be just as costly as the legal risks.
What does ‘procedural fairness’ actually mean in a workplace investigation?
Procedural fairness means that all parties have a chance to be heard, respond to allegations, and present evidence. Decisions must be based on facts, not assumptions, and the process must be transparent and impartial.
For example, if an employee is accused of misconduct, they must receive clear details of the allegations and a fair opportunity to respond.
Skipping these steps is a common reason why terminations are overturned in the Fair Work Commission.
Should I document everything in a workplace investigation?
Yes, documentation is your shield. From the initial complaint through to interviews, evidence, and the final outcome, every step should be recorded.
These records protect you if the process is challenged later and also demonstrate to employees that you’re handling the matter seriously and consistently.
We always recommend preparing on the basis that the matter may end up in Fair Work or a court, the safest rubric to apply is: “if it’s not documented, it didn’t happen.”
When should I bring in an external workplace investigator?
An external investigator is strongly recommended whenever the outcome of a complaint could potentially lead to termination, because in those cases the process must be beyond reproach.
Having an independent party conduct the investigation and provide a written report with findings and recommendations helps remove any perception of bias and gives the business stronger coverage if the decision is later challenged.
This is even more critical where the complaint involves senior leaders, serious allegations such as harassment, discrimination, or fraud, or where trust in management is already strained.
External investigations provide credibility, neutrality, and a defensible framework for decision-making, reducing both legal and cultural risk