Why internal investigations matter
Internal investigations are more than just fact-finding exercises. When handled properly, they help organizations:
- Uphold legal and ethical standards;
- Avoid litigation and regulatory fines;
- Preserve employee trust;
- Protect public image and stakeholder confidence.
Poorly handled investigations, however, can have severe consequences. A recent Dutch Court of Appeal decision (Atria case) found an employer liable for €200,000 in damages after failing to investigate allegations properly prior to dismissal. The case underscores the high legal and reputational stakes.
Key topics we covered
1. The Dutch legal landscape
Dutch law does not provide a single framework for internal investigations. Instead, employers must navigate multiple overlapping sources:
- The Dutch Civil Code (duty of care and good employment practice);
- The Working Conditions Act (psychosocial safety);
- The GDPR and privacy rules;
- Collective labor agreements, company policies, and contracts;
- European human rights principles.
These frameworks require employers to conduct investigations in a way that is fair, proportional, and respectful of privacy and due process.
2. Foundational elements for prevention
A solid compliance culture begins before any incident arises. Employers are strongly encouraged to implement:
- A clear Code of Conduct outlining expected behavior and procedures;
- A trusted, independent confidential advisor (soon to be mandatory under proposed legislation);
- A complaints procedure including a neutral complaints committee;
- A whistleblower policy for companies with 50+ employees under the Dutch Whistleblower Protection Act.
These structures reduce risk and demonstrate your commitment to a safe and accountable workplace.
3. Conducting an internal investigation
We discussed best practices for managing investigations, including:
- Triggering an investigation: Based on credible reports or concrete signs of unsafe behavior (e.g., harassment, discrimination, or fraud).
- Balancing urgency and fairness: Especially in cases where an instant dismissal is considered.
- Plausibility and planning: Starting with a plausibility check and then setting a clear scope, method, and timeline.
- Investigative steps: Ranging from document reviews and interviews to more complex forensic work.
- Employee rights: Including the right to be heard, to review interview notes, and to involve legal counsel.
4. Internal vs. external investigations
Employers may opt for internal or external investigations, depending on the case’s complexity and sensitivity.
External advisors (such as lawyers or forensic accountants) provide neutrality and expertise. Engaging legal counsel also ensures attorney-client privilege — a key consideration in sensitive matters.
However, legal independence must be maintained: if a lawyer conducts the investigation, they generally cannot represent the company in any related dispute afterwards.
5. Disciplinary action
Following an investigation, outcomes may vary. Confirmed misconduct can lead to disciplinary action — but employers must act proportionally and ensure all facts are clear.
Sanctions can range from warnings to suspension or termination (with or without notice). In the Netherlands, instant dismissal is legally valid only if it meets strict conditions, including urgency and due diligence.
6. Whistleblowing and the Dutch whistleblower protection act
Employers with 50+ workers must have a whistleblower policy under the Dutch Whistleblower Protection Act. The law:
- Protects whistleblowers against retaliation;
- Sets minimum requirements for internal reporting procedures;
- Emphasizes the public interest nature of protected disclosures.
Failure to comply can lead to legal claims, reputational fallout, or even criminal liability — such as fines or imprisonment for breaching whistleblower confidentiality.
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