Workplace Investigations: When Employers Should Call a Private Investigator
An employee is repeatedly calling in sick but there are reasons to question the absences. Inventory keeps disappearing. Financial records do not add up. A confidential complaint alleges serious misconduct. Management suspects an employee may be stealing company property, committing fraud or violating workplace policies.
What should an employer do next?
Some workplace concerns can be handled internally through management, human resources or legal counsel. Others may require independent evidence gathering, surveillance, interviews or a more detailed investigation.
That is where a private investigator may become valuable.
A workplace investigations private investigator can help an employer establish facts, document evidence and investigate allegations without relying on rumours or assumptions. The investigator’s role is not to decide how an employee should be disciplined or whether someone is guilty of a criminal offence. Their role is to gather and document relevant information objectively and lawfully.
Knowing when to bring in an outside investigator can help employers protect the integrity of an investigation and make better-informed decisions.
What Is a Workplace Investigation?
A workplace investigation is a structured process used to determine what happened when an employer becomes aware of an allegation, incident or pattern of concerning behaviour.
The investigation may involve:
- reviewing documents and records
- interviewing complainants and witnesses
- interviewing the person accused of misconduct
- reviewing photographs or video
- conducting surveillance where appropriate
- examining timelines
- gathering physical or documentary evidence
- comparing statements
- documenting findings
- preparing an investigative report
The scope should depend on the issue being investigated.
A missing laptop may require a very different investigation from suspected expense fraud, repeated unexplained absenteeism or a complex workplace harassment complaint.
The purpose is not to begin with a conclusion and find evidence to support it.
A proper investigation begins with a question.
What actually happened?
When Can a Private Investigator Help an Employer?
Ontario’s Private Security and Investigative Services Act defines a private investigator as someone who performs investigative work for remuneration primarily for the purpose of providing information. The legislation specifically includes information about a person’s actions, business or occupation and the whereabouts of people or property.
Employers considering an outside investigator should therefore ensure they are working with an appropriately licensed investigator or agency. Ontario provides information about private investigator licensing and requirements.
A private investigator may be useful when the employer needs independent fact-finding or investigative techniques that go beyond a routine internal HR review.
That can include cases involving theft, fraud, misconduct, policy violations, absenteeism and other situations where objective evidence is important.
Employee Theft Investigations
Employee theft can take many forms.
It may involve:
- inventory
- cash
- tools
- equipment
- materials
- merchandise
- company property
- fuel
- intellectual property
- unauthorized use of business resources
Sometimes the loss is obvious.
Other times, an employer simply notices that inventory levels no longer make sense or equipment repeatedly disappears from a particular location.
The wrong response is to immediately accuse the employee management suspects.
Suspicion is not evidence.
An investigation may begin by identifying when losses occur, who has access to the affected area, what records exist and whether there are patterns.
Depending on the circumstances, an investigator may review available documentation, interview witnesses, conduct lawful surveillance or gather other evidence.
The objective is to determine what the evidence actually establishes.
It may support the employer’s suspicion.
It may point to someone else.
It may reveal a procedural weakness rather than intentional theft.
An investigator must remain open to all of those possibilities.
Workplace Fraud Investigations
Fraud can be particularly difficult for an employer to identify because the person involved may understand the organization’s systems.
Examples of suspected workplace fraud can include:
- falsified expense claims
- false invoices
- unauthorized purchases
- payroll manipulation
- time theft
- misuse of company credit cards
- false reimbursement claims
- conflicts of interest
- diversion of company property
- falsified records
Private investigators are not accountants and should not present themselves as forensic accountants unless they separately hold those qualifications.
However, investigators can work alongside management, legal counsel, accountants or forensic accounting professionals when a matter requires investigative fact-finding.
For example, an investigator might help determine who had access to certain information, interview relevant individuals, establish a timeline or document activities connected to the suspected conduct.
Complex workplace fraud often benefits from a multidisciplinary approach.
Investigating Employee Misconduct
Not every workplace investigation involves theft or financial loss.
Employers may need to investigate allegations involving:
- serious policy violations
- inappropriate workplace conduct
- misuse of company property
- unauthorized disclosure of confidential information
- conflicts of interest
- dishonesty
- falsification of documents
- abuse of company resources
- threats or violence
- other conduct that may violate workplace rules
The investigation should be proportionate to the allegation.
A minor policy issue may not require a private investigator.
A serious allegation involving disputed facts, multiple witnesses, potential litigation or significant consequences may justify bringing in an independent professional.
Workplace Harassment Requires Particular Care
Employers need to be especially careful when the allegation involves workplace harassment.
Ontario’s Occupational Health and Safety Act creates specific employer obligations relating to workplace harassment. Ontario’s official guidance explains that employers must ensure an investigation appropriate in the circumstances is conducted when they become aware of an incident or complaint of workplace harassment.
The province’s workplace violence and harassment guidance explains that an appropriate investigation will generally be timely, fair and address the relevant issues.
Depending on the circumstances, that investigation may include:
- reviewing the complaint
- interviewing the complainant
- interviewing the person alleged to have engaged in harassment
- interviewing witnesses
- reviewing relevant emails, notes, photographs or videos
- preparing a report describing the investigation and findings
An investigation may be conducted internally or externally depending on the circumstances.
For example, if the allegation involves a senior manager, owner or someone who could influence the internal investigation, an independent investigator may be appropriate.
However, employers should determine what qualifications and expertise are required for the particular investigation and may wish to consult employment counsel before selecting the investigator.
When Independence Matters
One of the strongest reasons to bring in an outside investigator is independence.
Imagine a complaint involving the head of a department.
The HR employee who would normally investigate reports directly to that department head.
Even if HR conducts the investigation professionally, employees may question whether the process was truly independent.
Ontario’s workplace harassment guidance specifically recognizes that where the alleged harasser is the employer or supervisor, an investigation may be conducted by someone internal or external who is not directly involved and is not directly under the alleged harasser’s control.
An independent investigator can create separation between the allegation and the people responsible for gathering the evidence.
That can be particularly valuable when:
- senior management is involved
- internal relationships create conflicts
- the allegations are serious
- litigation is possible
- multiple employees are involved
- previous internal investigations have been challenged
- the employer lacks investigative expertise
Independence does not guarantee that everyone will agree with the findings.
It helps protect the integrity of the process.
Absenteeism and Disability-Related Investigations
Absenteeism is another area where employers sometimes consider private investigators.
An employee may be absent repeatedly, on an extended leave or subject to restrictions that affect their ability to perform certain work.
Employers should be cautious here.
An investigator should not be hired simply because an employee has a disability or takes legitimate leave.
There should be a legitimate investigative purpose, and employers should consider employment, human rights, privacy, collective agreement and other legal obligations before proceeding.
Where surveillance is lawfully appropriate, its purpose should be to document observable activity rather than diagnose a medical condition.
For example, an investigator may document:
- travel
- physical activity
- attendance at locations
- publicly observable conduct
- patterns relevant to the investigation
The investigator should report what was observed.
They should not turn those observations into unsupported medical conclusions.
The Role of Surveillance in Workplace Investigations
Surveillance is one of the investigative techniques most commonly associated with private investigators, but it should not automatically be the first step in every workplace case.
Ontario’s official Private Investigator Study Guide describes surveillance as observing people, places or things without detection and notes that surveillance may produce photographs or video as illustrative evidence.
In a workplace investigation, surveillance might be considered when there is a legitimate need to independently document activity relevant to an allegation.
However, surveillance should have a defined objective.
Before beginning, the investigator and client should understand:
- what allegation is being investigated
- what information is needed
- why surveillance is relevant
- what limitations apply
- how the evidence will be documented
A vague instruction to “follow this employee and see what you find” is very different from a properly scoped investigation based on a defined concern.
Electronic Monitoring Is a Separate Consideration
Employers also need to distinguish private investigator surveillance from electronic monitoring conducted through workplace technology.
Electronic monitoring can include methods such as GPS tracking, monitoring websites visited by employees, tracking activity through company systems or using other electronic tools.
Ontario has specific requirements for certain employers regarding written electronic monitoring policies. The province’s guide to electronic monitoring of employees explains the information that must be included in those policies where the requirements apply.
Employers should not assume that hiring a private investigator overrides employment, privacy, contractual or other legal considerations.
Before implementing monitoring or surveillance, employers should understand which rules apply to their organization and circumstances.
Interviews in Workplace Investigations
Interviews can be one of the most valuable sources of information in a workplace investigation.
A well-conducted interview is not simply a conversation.
The investigator should know:
- why the person is being interviewed
- what information is required
- what evidence already exists
- which facts need clarification
- what inconsistencies require follow-up
The investigator should remain professional and neutral.
The goal is not to intimidate someone into agreeing with the investigator’s theory.
It is to obtain information.
Open-ended questions can be particularly useful.
Instead of asking:
“You saw John take the equipment, correct?”
An investigator might begin with:
“Tell me what you observed that evening.”
The second question allows the witness to provide their own account before the investigator introduces specific details.
Witness Credibility and Conflicting Accounts
Workplace investigations frequently involve conflicting stories.
One employee says something happened.
Another says it did not.
A third remembers only part of the incident.
The investigator should document those accounts accurately and compare them against other available evidence.
That may include:
- timestamps
- emails
- messages
- access records
- schedules
- photographs
- video
- receipts
- business records
- witness accounts
- surveillance evidence
A professional investigator should not automatically believe the person who speaks most confidently.
The evidence needs to be considered as a whole.
Evidence Gathering and Preservation
Evidence can disappear quickly.
Video may be overwritten.
Emails may be deleted.
Receipts may be lost.
Employees may leave the company.
Memories may become less reliable as time passes.
When a serious workplace incident occurs, employers should consider what evidence may need to be preserved.
Depending on the case, that could include:
- CCTV footage
- emails
- text messages
- photographs
- access-control records
- schedules
- time records
- financial documents
- incident reports
- employee statements
- inventory records
- physical evidence
Employers should preserve potentially relevant evidence in accordance with their legal obligations and internal policies.
If litigation, criminal proceedings or regulatory action may result, legal counsel can advise the employer about preservation requirements and privilege considerations.
Documentation Can Make or Break an Investigation
A good investigation should leave a clear record of what was done.
Ontario’s workplace harassment guidance specifically emphasizes documentation and identifies information such as names, dates, complaints, incident details, interview notes, supporting evidence, investigative reports and resulting actions as potentially important records.
Private investigators should also maintain professional notes and reports documenting their investigative activities.
Good documentation helps establish:
- what information was received
- when investigative steps occurred
- who was interviewed
- what was observed
- what evidence was collected
- where evidence came from
- how conclusions were reached
Months later, someone reviewing the investigation should be able to understand the process.
Confidentiality During Workplace Investigations
Workplace investigations can involve extremely sensitive information.
Allegations may affect an employee’s career, reputation and relationships with colleagues.
Information should therefore be handled carefully.
Access should generally be limited to people who need the information for legitimate business, investigative or legal purposes, subject to applicable law.
Ontario’s workplace harassment guidance also addresses confidentiality and explains that information obtained about an incident or complaint, including identifying information, should not be disclosed unless necessary for investigating or taking corrective action, or otherwise required by law.
Private investigators have professional obligations regarding confidential information obtained through their work.
Employers should discuss:
- who will receive investigative reports
- where records will be stored
- who may access evidence
- how information will be transmitted
- whether legal counsel is involved
- what information may need to be disclosed later
Confidentiality should be planned at the beginning of the investigation, not considered after sensitive information has already circulated through the workplace.
When Should Police Be Called?
A private investigator does not replace police.
If an employer discovers circumstances involving immediate danger, violence or another emergency, emergency services should be contacted as appropriate.
Suspected criminal conduct may also justify contacting police depending on the circumstances.
A private investigator cannot lay criminal charges on behalf of the police or compel police to pursue a case.
What an investigator can do is help an employer gather and organize information that may later be relevant to police, legal counsel, insurers, regulators or court proceedings.
The employer and its legal advisors should determine the appropriate reporting strategy for serious incidents.
When an Internal Investigation May Be Enough
Not every workplace complaint requires The Smith Investigation Agency.
Many issues can and should be handled internally.
An internal investigation may be appropriate where:
- the allegation is relatively straightforward
- HR has appropriate experience
- there is no conflict of interest
- specialized investigative techniques are unnecessary
- the relevant evidence is already available internally
- the matter is unlikely to require surveillance or extensive external fact-finding
Hiring an outside investigator should have a purpose.
The goal is not to make a minor issue appear more serious.
It is to bring additional independence, experience or investigative capability when the circumstances justify it.
When an Outside Private Investigator Makes Sense
An employer may want to consider a private investigator when:
- employee theft is suspected
- fraud may be occurring
- external surveillance may be relevant
- significant misconduct is alleged
- independent witness interviews are required
- evidence exists outside the workplace
- internal management has a conflict of interest
- the matter involves multiple locations
- an employee’s activities outside the workplace are legitimately relevant to the investigation
- the employer needs professional investigative documentation
- litigation or another formal proceeding may follow
In more complex cases, the private investigator may work alongside HR, employment counsel, forensic accountants, cybersecurity professionals or other specialists.
The investigator does not need to replace those professionals.
They can be one part of the investigative team.
Avoid Starting with a Desired Conclusion
One of the biggest mistakes an employer can make is telling the investigator what they expect the investigation to prove.
“We know this employee is stealing. We just need you to prove it.”
That approach creates immediate problems.
The correct starting point is the allegation and the available evidence.
A professional investigator must be prepared for the investigation to produce a different answer from the one the client expected.
The employee suspected of theft may have done nothing wrong.
The person accused of misconduct may have a different account supported by evidence.
The absenteeism concern may turn out to have a legitimate explanation.
An investigation that only searches for evidence supporting one conclusion is not objective fact-finding.
Preparing to Contact a Private Investigator
Employers can make an investigation more efficient by organizing available information before contacting an agency.
Useful information may include:
- a summary of the allegation
- relevant dates and times
- employee names and positions
- workplace locations
- photographs
- schedules
- existing incident reports
- available video
- relevant policies
- known witnesses
- previous related incidents
- documents connected to the allegation
Do not alter original evidence to make it easier to understand.
Preserve the originals and provide context separately.
The investigator can then help determine what additional information may be required.
Frequently Asked Questions About Workplace Investigations
Can an employer hire a private investigator to investigate an employee?
There are circumstances where an employer may retain a licensed private investigator for legitimate workplace investigative purposes. However, the employer and investigator must consider the applicable employment, privacy, human rights, contractual and other legal requirements.
Can a private investigator conduct surveillance on an employee?
Surveillance may be an investigative option in appropriate circumstances, but it should have a legitimate and defined purpose and be conducted lawfully. Employers should not assume that surveillance is automatically appropriate simply because they suspect misconduct.
Can a private investigator investigate employee theft?
Yes. Employee theft is one type of workplace matter where a private investigator may assist with fact-finding, surveillance, interviews and evidence gathering depending on the circumstances.
Can a private investigator interview employees?
Private investigators can conduct interviews as part of an investigation. The employer should consider workplace policies, collective agreements, legal advice and any rights that may apply to employees participating in the process.
Should workplace investigations be confidential?
Sensitive investigative information should be carefully controlled. Who can receive or disclose information depends on the type of investigation and applicable legal requirements. Confidentiality should be addressed as part of the investigative plan.
When should an employer use an outside investigator instead of HR?
An outside investigator may be appropriate when independence is important, internal conflicts exist, specialized investigative techniques are required, the allegations are particularly serious or evidence must be gathered outside the workplace.
Speak with The Smith Investigation Agency About a Workplace Investigation
Workplace allegations can place employers in a difficult position.
Act too quickly and you may make decisions before the facts are established.
Wait too long and important evidence may disappear.
The objective of a professional workplace investigation is to establish reliable information through a structured, documented and impartial process.
The Smith Investigation Agency assists businesses, organizations, legal professionals and other clients with investigative services that can support workplace matters involving suspected theft, fraud, misconduct, absenteeism and other concerns requiring professional fact-finding.
Depending on the circumstances, an investigation may involve surveillance, interviews, evidence gathering, documentation or a combination of investigative techniques.
Every workplace matter is different. The appropriate approach should be determined by the allegation, available evidence, legal considerations and the information the client actually needs.
If your organization is dealing with a workplace concern and you are unsure whether an outside investigation is appropriate, contact The Smith Investigation Agency to discuss the circumstances and determine what investigative options may be available.
Good workplace decisions begin with reliable facts.
