Top 10 Issues for Employers, #3: Guidelines for Workplace Investigations
Assess the Complaint
An employee complaint made pursuant to an employer’s reporting procedures should automatically trigger an investigation. However, where a complaint is quickly determined to be frivolous or vexatious, no further inquiry is required.
Determine the Objectives of the Investigation
The employer’s objectives in conducting the investigation will depend on the employer’s legal obligations in connection with the complaint and the impact on the business should the complaint be substantiated. For example, the employer will want to consider its obligations under human rights legislation, the potential for criminal prosecution of the employee in question, and the potential for dismissal litigation. In the event that a complaint is substantiated, an employer will generally want to impose some kind of discipline and take steps to avoid similar wrongdoing in the future.
Determine Whether to Involve a Third Party
An employer may wish to retain legal counsel in connection with the investigation, which may, in some cases, protect the findings from disclosure based on solicitor-client privilege. The employer will also have to determine whether the investigation will be conducted in-house or whether to engage an external investigator, possibly one with specialized expertise in areas such as computer forensics or forensic accounting. An external investigator may be perceived as more neutral, while an in-house investigator may have a better understanding of the employer’s corporate culture.
Determine the Status of the Parties
If the complainant does not feel safe or is concerned about reprisals, it may be appropriate to transfer him or her to another area of the workplace, make a change in reporting relationships or provide a paid leave of absence. In extreme circumstances, the complainant may be able to apply for benefits through the employer’s disability program or Employment Insurance. Workers’ compensation benefits may be available to the complainant in very limited circumstances where there has been an acute and traumatic event in the workplace.
In most cases, there should be no change to the working conditions of the subject of the complaint during the course of the investigation, so as to avoid a claim that the employer pre-judged the outcome. However, where the substance of the allegations gives rise to concern for the safety of the complainant and other employees, the employer may consider placing the subject on a paid leave of absence pending the conclusion of the workplace investigation.
Conducting Witness Interviews
Order of Interviews
It is common for the investigator to interview the complainant, followed by any witnesses suggested by the complainant, followed by the subject of the complaint and any witnesses suggested by him or her. However, the facts of a particular complaint may suggest a different ordering. An investigator will generally want to speak to those individuals with direct, first-hand knowledge of the facts at hand.
Each witness should be informed that the interview process is confidential and that, depending on the nature of the complaint and the potential for legal proceedings, he or she may be called as a witness. To maintain the integrity of the investigation process and to protect employee privacy, each witness should be provided with only those details regarding the nature of the complaint that are necessary to make the interview meaningful.
It is good practice to ask a witness to review notes taken during the interview by either the investigator or an observer and sign them to indicate that they accurately reflect the discussion that took place. Alternatively, a witness statement may be prepared and presented to the witness to sign at a later date. Witnesses should also be advised to contact the investigator if they have any additional information, corrections or clarifications to make to the facts discussed in the interview.
Since memories fade with time, it is important to meet with witnesses and conduct interviews as soon as possible after the alleged incident or event.
Interviewing the Complainant and the Subject
The investigator will generally want to reassure the complainant that the employer is taking the allegations seriously, and explain that further information is needed to conduct a complete investigation.
The subject of the complaint should be given the opportunity to fully respond to the allegations made. In addition, the investigator should reassure him or her that the complaint is being dealt with in as confidential a manner as possible. Where the complaint concerns allegations of discrimination under human rights legislation, the investigator should deliver a caution that reprisals in response to such complaints are prohibited.
Dealing with Missing Evidence
The investigator should have the ability to review records belonging to the employer, such as employee files, email messages sent to and from the employer’s computer system and expense reports. However, an investigator does not have the power to compel an employee or third party to provide records that belong to them. In addition, the investigator may need to be cognizant of privacy legislation protections that may apply to the collection, use and disclosure of certain information relevant to the investigation.
Where a witness refuses to provide relevant documents without providing a reasonable explanation for such refusal, the investigator may choose to draw an adverse inference against that witness.
Finalizing the Investigation
The investigator’s role is to make findings of fact, including with respect to witness credibility. These factual findings will then allow a determination to be made by either the investigator or the employer, informed by legal advice, as to whether the complaint is substantiated or unsubstantiated, or whether the investigation is inconclusive. The standard of proof used in a workplace investigation is usually the “balance of probabilities”, meaning that it is more likely than not that the alleged misconduct took place. However, it may be advisable for employers to require a greater degree of certainty where the conduct at issue is criminal in nature.
The report produced as the result of a workplace investigation may become evidence in further legal proceedings, such as an employee grievance, human rights complaint or civil action. It is therefore important that the investigation report be carefully drafted.
While the outcome of the investigation should be communicated to the parties, the final report should generally be circulated only amongst the final decision-makers.
If the complaint is substantiated, the employer should take action to:
- Prevent the harassment, fraud or misconduct from recurring. This objective can often be achieved through training and education of the employer’s employees, which may include counseling for the respondent.
- Correct the negative impact of the incident on the complainant, for example, by accommodating any requests for transfer, relocation or changes to reporting structure.
- Discipline the subject of the complaint in a manner proportional to the severity of the misconduct, up to and including dismissal.
For more information, please contact any member of our Employment & Labour group.
Posted in: Employment & Labour
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