Conducting fair and robust workplace investigations
A recent decision from the Employment Appeal Tribunal in Chand v EE Ltd [2026] EAT 17 offers a timely reminder of how important a thorough and balanced investigation is when managing disciplinary matters.
For many organisations, investigations are often carried out under time pressure and in challenging circumstances. However, this case highlights how weaknesses in the investigation process can undermine a dismissal decision and expose employers to significant legal and reputational risk.
This case provides a useful reminder that when investigations are rushed, poorly structured or influenced by assumptions, dismissal decisions can quickly unravel.
The case in brief
Elizabeth Chand had worked for EE Ltd for 16 years as a Senior Customer Advisor with an otherwise unblemished record. She was dismissed for gross misconduct following four incidents which the employer believed amounted to fraud.
Ms Chand admitted that mistakes had been made but denied any fraudulent intent. She also explained that she had been experiencing significant personal stress while caring for her unwell parents.
The Employment Tribunal concluded that the employer did not have reasonable grounds to determine that fraud had occurred. While one of the incidents did represent a serious breach of policy, the tribunal found that the investigation had not properly established fraudulent intent. The Employment Appeal Tribunal ultimately upheld the finding of unfair dismissal.
Where the investigation process fell short
One of the key issues identified by the tribunal was the way in which the allegations had been assessed. Rather than carefully analysing each incident individually, the employer considered the four matters collectively and allowed an assumption of fraud to shape the overall conclusion.
This approach blurred the distinction between the actions of a customer attempting to commit fraud and the actions of the employee herself. As a result, the tribunal concluded that the employer did not have reasonable grounds for believing the claimant had committed fraud.
The investigation also failed to give sufficient weight to important mitigating factors, including Ms Chand’s long record of service and the personal pressures she was experiencing at the time.
Perhaps most significantly, the appeal process did not address the shortcomings of the original investigation. Instead of conducting an independent reassessment of the evidence, the appeal decision largely upheld the initial findings.
What this means for employers
While the circumstances of this case were specific, the underlying issues are common in workplace investigations. When investigators begin the process with a fixed assumption about what has happened, there is a risk that evidence will be interpreted in a way that confirms that assumption rather than objectively testing it.
This is why a structured and impartial investigation process is so important. The purpose of an investigation is not to prove wrongdoing, but to establish the facts as fairly and thoroughly as possible before any disciplinary decisions are made.
Good practice when conducting investigations
In practice, a fair investigation should begin with clearly identifying the allegations and determining what evidence is required to understand what has happened. Investigators should gather relevant documentation, interview witnesses where appropriate and ensure the employee involved has a full opportunity to respond to the concerns raised.
It is also important that each allegation is assessed on its own merits rather than being grouped together or influenced by assumptions about intent. Investigators should carefully document how evidence has been considered and explain the reasoning behind any conclusions reached.
Where personal circumstances or mitigating factors are raised, these should be properly explored and considered before determining the appropriate next steps.
Maintaining detailed records throughout the process is equally important. Clear documentation helps demonstrate that the investigation has been conducted fairly and can provide essential evidence if decisions are later challenged.
Protecting your organisation
From a legal perspective, the fairness of an investigation is often central to whether a dismissal will be considered reasonable by a tribunal. If employers rely on assumptions rather than evidence, or fail to properly consider mitigating factors, disciplinary decisions are far more vulnerable to challenge.
Taking the time to conduct a careful, objective and well-documented investigation not only supports fair outcomes for employees but also helps protect organisations from unfair dismissal claims, costly litigation and reputational damage. When handled well, workplace investigations reinforce fairness, consistency and accountability across the organisation – while ensuring that decisions stand up to scrutiny if they are ever challenged.
