Not every workplace issue requires a formal investigation—but many leaders don’t realize how often situations warrant one. A common mistake is trying to quietly resolve or ignore a concern, hoping it goes away. This approach often backfires, leading to legal, financial, and reputational damage. 

So, how do you know when it’s time to launch a formal investigation—or when another approach may be more appropriate? This guide breaks it down and shows why getting it right protects your team and your business. 

Why Some Situations Require a Formal Investigation 

When issues like violence, harassment, or misconduct come up, it’s natural to feel caught in the middle. However, some situations must be investigated by law. In Canada, all jurisdictions have OHSA legislation to varying extents which requires employers to investigate all harassment and violence complaints. 

In a 2019 case, the Ontario Superior Court ordered an employer to pay $50,000 in aggravated damages after it ignored a 73-year-old employee’s repeated complaints of verbal abuse by a co-worker. The employer failed to investigate or take disciplinary action, and when the employee was later physically assaulted, she was terminated the same day. The court found the employer’s inaction and dismissal constituted bad faith, justifying the aggravated damages. 

When to Conduct a Workplace Investigation 

You should launch a formal investigation when: 

• A complaint involves harassment, discrimination, misconduct or violence 

• There are conflicting accounts, and you need to determine what happened 

• Leadership or HR is involved in the concern 

• The issue could escalate into a legal or reputational problem 

• Attempts to resolve the issue informally have failed 

• The issue is likely to recur without a thorough fact-finding process. 

Does This Situation Call for Investigation Or Alternative Approaches? 

In one Ontario healthcare organization, informal team conflicts led to a toxic culture and multiple departures. It wasn’t until an external investigation substantiated a manager’s discriminatory behaviour that the organization took corrective action, averting a potential lawsuit and restoring employee trust.  

Understanding whether an issue requires conflict resolution techniques, a workplace assessment or a formal investigation can prevent missteps. Here’s a quick comparison: 

These situations often overlap, making it difficult to determine which approach is most appropriate. Not sure where your situation fits? Reach out to MaxPeople for guidance. 

Internal or External Investigator? Ask Yourself These 5 Questions 

If you answer “yes” to even one of the questions below, it’s a strong sign you should bring in an external investigator: 

1. Does the issue involve serious allegations that could affect multiple people or the organization’s reputation? 
2. Does it involve a third party, like a contractor or supplier? 
3. Are members of senior management or leadership involved? 
4. Are there technical, legal, or regulatory aspects that require expert knowledge? 
5. Is there a potential conflict of interest between the internal investigator and the parties involved? 

Quick Employer Checklist: Do I Need to Investigate? 

Use this checklist to assess your next steps: (insert checklist emoji for bullets) 

☑️Has someone raised a complaint, formally or informally? 

☑️Is there A CONCERN of harassment, discrimination, or misconduct? 

☑️Are people in power (e.g. managers, Senior leadership) involved? 

☑️Could the issue pose legal, financial, or reputational risk? 

☑️Have informal solutions (like mediation) already failed, or don’t feel appropriate?  

☑️Are you unsure how to remain neutral or document the facts? 

If you answered “yes” to two or more of these, it’s time to seriously consider a formal investigation. 

At MaxPeople, we support organizations through both internal and external workplace investigations. Whether you need guidance on when to investigate, a neutral third-party to handle the process, or post-investigation HR support, our experienced team ensures compliance, objectivity, and confidentiality. 

Make the right call before it becomes a crisis. Contact MaxPeople to learn how we can support your workplace investigation needs. 

For more information about fractional HR services, email [email protected] or call 1.888.709.1236