Faulty investigations can drive claims, regulatory scrutiny, and coverage issues
Recent legal commentary has drawn attention to how Australian employers conduct workplace investigations and manage liability arising from work functions, including end-of-year events, with implications for insurers, brokers, and entities regulated by the Australian Prudential Regulation Authority (APRA).
Law firm Clyde & Co has said workplace investigations are “a critical tool for managing allegations of misconduct, resolving disputes, and ensuring compliance with legal and organisational standards,” and that mishandling them can lead to unfair dismissal claims, reputational damage, and loss of regulator confidence. Its recent insights note that, for regulated and high-risk sectors, investigations and work-related social events intersect with governance, insurance, and regulatory expectations.
Workplace investigations in regulated and high-risk sectors
Clyde & Co said workplace investigations form part of a broader governance, risk, and insurance framework rather than a stand‑alone HR function. This is particularly relevant for entities regulated by APRA and for insureds in sectors such as aviation, shipping, mining, natural resources, and construction. In these environments, an investigation may:
- Give rise to statutory or prudential reporting obligations
- Affect the defensibility of current or future claims
- Become a focus of attention for regulators, boards, or insurers
The firm...
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