What is an independent workplace investigation? A guide for businesses

NJ Written by Neena Jhawer Senior Consultant - Crime, Business Crime and Investigations

Published

9 November 2026

Last updated

9 November 2026

Read time

12 mins

An independent workplace investigation (otherwise known as an internal independent investigation) is a fact-finding exercise into a serious concern at work, carried out by someone outside your usual management and HR structure. This guide explains when a business might need one, how it works and what happens with the findings.

Key takeaways 

• An independent workplace investigation establishes the facts behind a serious concern, free from the influence of internal relationships.
• It’s most useful when senior people are involved, the allegation is serious, or regulators, insurers or a tribunal may examine how it was handled.
• The first steps matter: secure the evidence, keep the matter confidential and handle personal data lawfully.
• The investigator finds the facts and makes recommendations; decisions such as disciplinary action stay with the business.
• Where solicitors carry out or direct the investigation, some material may be protected by legal privilege.

The short answer 

An independent workplace investigation is an impartial review of a serious concern at work, such as alleged fraud, misconduct or a whistleblowing report. It’s carried out by someone with no stake in the outcome and no reporting line to the people involved, often an external solicitor or specialist investigator. 

The investigator gathers and reviews the evidence, interviews the people involved and reports what the evidence shows. Their job is to establish the facts, not to reach a set conclusion or make decisions for you. 

Businesses usually choose an independent investigation when an internal process would be hard to run fairly. That’s often the case when directors or senior managers are involved, when the allegation is serious, or when regulators, insurers or a tribunal may later look at how it was handled. 

What’s the difference between an internal and an independent investigation? 

The difference is who carries it out. An internal investigation is run by someone inside the business, usually a manager or a member of the HR team. An independent investigation is run by someone outside it, with no connection to the people or events involved 

The purpose is the same either way. Acas guidance on investigations at work describes an investigation as finding out all you reasonably can about an issue: gathering evidence from all sides, working out whether there’s a case to answer and treating everyone fairly 

When might a business need an independent investigation?

You might need one when the allegation is serious, the people involved are senior, or someone outside the business is likely to examine how you handled it. The more of these apply, the stronger the case for bringing in an independent investigator.

Signs an independent investigation may be the right choice:

• Directors, senior managers or HR are involved, or are close to the people who are.
• The allegation could amount to a criminal offence, such as fraud, theft or bribery.
• A regulator, insurer, auditor, funder or the board may need to see how the matter was handled.
• There’s a realistic chance of an employment tribunal claim or other legal action.
• The concern has been raised as a whistleblowing disclosure.
• There are several connected allegations, or a pattern of concerns over time.
• Your internal team doesn’t have the time or specialist skills, for example, to review financial records.

Concerns that often lead to an independent investigation:

• Fraud, theft and financial misconduct, including manipulated records, unauthorised payments and procurement or supplier fraud
• Bribery, corruption and undeclared conflicts of interest
• Whistleblowing concerns
• Governance failings, and misuse of company resources or confidential information
• Serious bullying, harassment or discrimination complaints, particularly where senior people are involved

Large organisations have an added reason to take suspected fraud seriously. Since 1 September 2025, a large organisation can commit the offence of failure to prevent fraud if someone associated with it commits fraud intended to benefit it, unless it had reasonable prevention procedures in place.

The Home Office guidance on the failure to prevent fraud offence explains who is in scope and what those procedures might look like. The same guidance says investigations into suspected fraud should be independent, properly scoped and legally compliant, and asks organisations to decide in advance when they would appoint an external investigator.

Why use an independent investigator? 

An independent investigator brings objectivity, specialist skills and credibility that can be hard to achieve from inside the business.

• Objectivity. They have no working relationship with the people involved, no stake in the outcome and no pressure from internal politics.
• Credibility. Boards, regulators, insurers and employees are more likely to accept findings reached by someone impartial.
• Specialist skills. Experience of preserving evidence, reviewing financial records and interviewing reluctant or senior witnesses.
• Protection for your team. Managers and HR aren’t asked to investigate colleagues they work with every day, so can keep the business running.
• A clear record. A structured written report shows what was investigated, how, and what the evidence showed.

An independent investigator doesn’t decide the outcome, but establishes the facts and reports back. The business then decides what happens next.

What should you do when an allegation first arises?

Act promptly, but don’t jump to conclusions. What you do in the first few days can shape how fair and how useful an investigation can be.

Step 1: Record the concern. Note who raised it, when, and what they said, in their words rather than your interpretation.

Step 2: Secure the evidence. Preserve emails, documents, financial records, devices and system logs, and pause any automatic deletion. Restrict access to systems where there’s a risk that evidence could be changed.

Step 3: Keep it confidential. Share the concern only with those who need to know. Where criminal conduct is possible, be careful not to alert the person involved before evidence is secured.

Step 4: Decide whether suspension is needed. Suspension shouldn’t be automatic, and it isn’t a disciplinary sanction. Alternatives, such as working from a different site or temporarily restricting access to certain systems, may protect the investigation without suspending anyone.

Step 5: Handle personal data lawfully. An investigation involves personal data about the people involved and the witnesses. Any of them can make a subject access request, which an employer must usually answer within one month (ICO guidance for employers on subject access requests).

Step 6: Check your wider obligations. Your insurance policy, regulator or funding terms may require you to report certain concerns promptly.

Step 7: Decide who will investigate. Use the signs above to decide whether an internal or independent investigation is the right fit, then agree on its scope.

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How does an independent workplace investigation work?

Most independent investigations follow six stages, from agreeing on the scope to delivering a written report. The detail depends on the concern, but the structure is broadly the same as the stages set out in Acas’s step-by-step guide to investigations.

Stage 1: Agree on the terms of reference. This is a short, written brief setting out the allegations, the scope, who the investigator reports to, the expected timescale and what the report should cover. It keeps the investigation focused and shows that the process was planned fairly.

Stage 2: Plan the investigation. The investigator identifies the documents and witnesses needed, and the order in which to approach them. They also flag legal issues early, such as data protection, legal privilege or a parallel police investigation.

Stage 3: Gather and review the evidence. This can include emails and messages, financial transactions and supporting records, contracts, policies and internal controls.

Stage 4: Interview the people involved. Witnesses are interviewed and their accounts recorded. The person under investigation is told what’s alleged and given a fair opportunity to respond to each point.

Stage 5: Analyse the evidence. The investigator weighs all the evidence and reaches findings of fact, usually on whether something is more likely than not to have happened. 

Stage 6: Report the findings. A written report sets out the allegations, the evidence considered, the findings and, where asked, recommendations on controls, policies and governance.

What happens at the interview stage? Interviews are often the most sensitive part of an investigation. A good investigator explains the process, keeps questions open and neutral, and gives everyone a chance to check their account. The aim is a fair record, not a confession.

How are whistleblowing concerns investigated?

A whistleblowing concern is investigated in much the same way, with extra care for the person who raised it. A worker who makes a protected disclosure has legal protection from being dismissed or treated badly because of it, under Part IVA of the Employment Rights Act 1996.

A qualifying disclosure is information the worker reasonably believes is in the public interest and tends to show wrongdoing, such as a criminal offence, a breach of a legal obligation, a danger to health and safety, environmental damage, or that any of these is being covered up (Employment Rights Act 1996, section 43B).

In practice, a fair whistleblowing investigation means you:

• Keep the whistleblower’s identity confidential as far as you can, and agree with them how it will be handled
• Investigate the concern itself, not the person who raised it
• Protect them from detriment, including from colleagues
• Give them feedback on the outcome where you can, even if some details stay confidential

The Home Office guidance on failure to prevent fraud describes similar good practice, including independent reporting channels, timely investigation and protecting whistleblowers from victimisation.

What happens after the investigation? 

The investigator delivers the report, and the business decides what to do with it. Acas describes one purpose of an investigation as helping the employer decide what should happen next.

Next steps may include:

• Deciding whether there’s a case to answer under your disciplinary or grievance procedure
• Holding a disciplinary hearing, ideally run by someone other than the investigator
• Reporting to a regulator, insurer or the police, where required or appropriate
• Taking steps to recover money or assets
• Acting on recommendations to strengthen controls, policies and governance
• Telling the people involved, including any whistleblower, what they need to know about the outcome

You should decide early who will receive the report, as circulating it widely can affect confidentiality, and potentially privilege.

Investigations often reveal more than whether wrongdoing happened. Weak financial controls, unclear reporting lines or gaps in policy can come to light, and fixing them reduces the risk of the same problem happening again.

When to speak to a solicitor 

Speak to a solicitor early if the concern is serious, involves senior people, or could lead to a claim, a regulatory report or a criminal investigation. Early advice can help you protect the evidence and plan a fair process. 

Before you speak to anyone, it helps to: 

• Write down what you know so far, and who else knows about it
• Preserve the relevant records, messages and devices
• Check your policies, insurance and any reporting obligations
• List who might be involved, and any conflicts of interest within your team
• Decide what you need from the investigation: findings of fact, recommendations, or both

FAQs 

How long does an independent workplace investigation take?

There’s no fixed timescale. It depends on the number of allegations, witnesses and documents involved. The expected timescale should be set out in the terms of reference, with everyone kept updated if it changes.

Should the person under investigation be suspended?

Not automatically. Suspension is usually only appropriate where it’s needed to protect the investigation, the business or the people involved. Alternatives such as a temporary change of duties or location could be considered first.

Can an employee bring someone with them to an investigation meeting?

The legal right to be accompanied applies to disciplinary and grievance hearings, which usually come after the investigation. Your own policy may still allow a companion at investigation meetings.

Who sees the investigation report?

Usually, the person or panel who commissioned it see the investigation report. The people involved may be entitled to see relevant parts later, for example at a disciplinary hearing. Agree how the report will be shared before the investigation starts.

Can a whistleblower stay anonymous?

You should keep their identity confidential as far as you can. Full anonymity can make a concern harder to investigate, so it helps to agree with them at the start how their identity will be protected.

Do we have to report the findings to the police or a regulator?

It depends on the conduct, your sector and any regulatory or contractual duties. Some regulated businesses must report certain matters. Where fraud is involved, the Serious Fraud Office takes an organisation’s cooperation into account.

About the author

Neena Jhawer is a Senior Consultant Solicitor at Setfords. She represents individuals facing serious criminal allegations, fraud investigations, or who have lost money through financial wrongdoing, and is known for her ability to analyse complex evidence, resolve intricate problems, and provide clear, practical guidance in high-pressure situations.

This article is general information about independent workplace investigations in England and Wales and is not legal advice. The law and timescales can change, and every situation is different, so please speak to a qualified solicitor about your circumstances.