The risks of rushed workplace investigations

Handling workplace complaints is one of the most important responsibilities that you as a business owner have. A well-conducted investigation protects both the accuser and the accused, ensuring fairness and minimising legal risks.

But when processes are rushed, incomplete, or influenced by hearsay, the consequences can be severe—leading to dismissals, reputational damage, and even tribunal claims.

So what are the learnings from a recent case, and what can your business do to ensure fair workplace investigations?

What can we learn from a recent real-world case?

Workplace investigations should be built on facts, fairness, and due process. But when key steps are skipped, the consequences can be severe.

Take a recent case where an employee at Sodexo Ireland was dismissed following an allegation of sexual harassment. The company launched an investigation, but rather than gathering direct evidence, decision-makers relied on second-hand accounts. Critical evidence, such as CCTV footage, was unavailable or overlooked and the employee was then dismissed without a clear, unbiased review of the facts.

A tribunal later found that the investigation was flawed. It found that the employer had acted on hearsay, failed to consider all perspectives, and made a disciplinary decision without sufficient evidence. As a result, the dismissal was overturned, and the employee was reinstated, creating major legal complications for the business and also raising questions about its internal procedures.

What are the consequences of a flawed investigation?

Failing to conduct a thorough and fair workplace investigation can and will have serious repercussions for both your business and your staff.

In Ireland, if an employee is found to have been unfairly dismissed, the Workplace Relations Commission (WRC) can award compensation up to a maximum of two years’ gross renumeration, depending on the financial loss suffered by the employee. In one case, a sales executive was awarded over €329,000 after being dismissed without a formal warning over bullying allegations.

Beyond financial implications, employers may suffer reputational damage. Publicised tribunal cases can tarnish a company’s image, leading to a loss of client trust and difficulties in attracting and retaining talent. Negative publicity surrounding unfair dismissal claims can deter potential employees and clients, impacting the organisation’s bottom line.

Psychological and emotional impact on accused employees

Not to mention that employees who are falsely accused and subjected to unjust investigations often endure significant psychological distress. The emotional toll can manifest as stress, anxiety, depression and a profound sense of injustice. The damage to one’s professional reputation can lead to feelings of isolation and diminished self-worth.

In severe cases, individuals may experience long-term mental health issues, like post-traumatic stress disorder (PTSD). The combination of losing employment and facing unwarranted allegations can disrupt personal lives, strain relationships, and create financial hardships, further worsening the individual’s mental health.

The impact on investigations where wrongdoing has occurred

Plus, even in circumstances where an employee has committed some degree of wrongdoing, failing to uphold the process in a fair way can undermine the legitimacy of any disciplinary action. In some cases, this can result in an accused employee being reinstated by tribunal, even in cases where you as a business owner know they have done wrong.

This is seriously problematic and could lead to the accuser leaving the company, creating a huge sense of discontent and injustice among staff. In other words, it’s better for quite literally everyone involved to be as fair as possible.

All things considered, these consequences illustrate why conducting fair, thorough, and evidence-based investigations in the workplace are so critical. You’ll need to ensure that your procedures uphold fairness and protect the wellbeing of all employees involved.

Conduct fair workplace investigations with BrightHR

We’ve seen the consequences of failing to conduct investigations in a fair and balanced way, and it’s clearly not a risk you can afford to take.

Apart from following guidance set out by the Workplace Relations Commission (WRC), it’s helpful to have someone to talk to who can best advise you on a case-by-case basis.

BrightAdvice is a 24/7 advice helpline providing expert, qualified advice without costly legal fees. Our team of legal experts can advise you on your unique case, ensuring you’re not uncertain about where to go next.

Book a free demo with one of our software experts to learn more or call us on 1800 279 841.