Blog Post:

When an Investigation Ends in a Dispute: Protect Yourself With Process

Why a Signed Deed Matters More Than You Think

Workplace investigations often uncover uncomfortable truths—misconduct, performance issues, or clashes in leadership style. Sometimes, the best way forward is through a negotiated exit. But when these discussions lack structure or finality, what seemed like a clean resolution can backfire. A recent case before the Fair Work Commission (FWC) is a prime example of what can go wrong.

So what happens when an employee accepts a settlement by email—but never signs the deed?

A Real-World Cautionary Tale: When a Settlement Falls Apart

In a recent case before the Fair Work Commission (FWC), a senior executive earning over $400,000 annually challenged the assertion that he had agreed to settle a workplace dispute with his employer. While the employer claimed that a binding agreement had been reached, the employee contended no final settlement was concluded because he had not signed the formal deed.

The dispute highlights a critical issue for employers: reaching an “in-principle” agreement during settlement negotiations is not the same as executing a formal, enforceable agreement. In this case, despite the worker’s initial email acceptance of the proposed terms, he subsequently refused to sign the deed, citing incapacitation due to mental health issues.

The Fair Work Commission ultimately dismissed the unfair dismissal application on the basis that the employment relationship had ended by mutual agreement. However, the case offers valuable insight into how easily these matters can become legally complex and costly if proper protocols are not followed.

Why a Solid Workplace Investigation Still Matters

While this case revolved around a settlement dispute, it didn’t come out of nowhere. It followed concerns raised internally about the executive’s behaviour. That highlights a critical truth: Settlement discussions are often the end point of a much earlier process—an internal workplace investigation.

If that investigation lacks rigour or procedural fairness, everything that follows—including settlements—can be challenged.

According to the Fair Work Ombudsman’s guide to dispute resolution, best practice requires:

A clear process for raising and addressing concerns
Confidentiality and impartiality in handling disputes
Clear communication at all stages

A proper investigation not only uncovers the facts, but also lays the groundwork for a legally defensible resolution.

Key Lessons for Business Owners and Managers

1. Start with a thorough, fair investigation

Gather facts objectively and document your findings clearly.
Ensure the process is procedurally fair and gives both sides a voice.
Findings should inform any disciplinary or exit discussions.

2. Tie settlements directly to the facts

Don’t rush to resolve a matter with a handshake and hope.
Make sure any negotiated terms align with the investigation outcomes.
Stick to what can be substantiated.

3. A handshake (or email) is not enough—insist on a signed deed

A binding agreement requires signatures. Anything else is risky.
Your deed should include clear terms, mutual obligations, and a confidentiality clause.
Be specific about payments, timelines, and equipment return.

4. Document every step of the process

Keep a written record of all correspondence, draft deeds, notes, and meetings.
Timestamped emails and tracked changes can be vital if things go to a tribunal.

5. Allow time and encourage legal advice

Give employees 7–14 days to review the deed.
Encourage them to seek independent legal advice—this shows procedural fairness and reduces the risk of future claims.

6. Avoid inconsistency between what’s said and what’s signed

Make sure the deed matches any offers previously made.
Don’t verbally agree to things that aren’t reflected in the final document.

7. Know your obligations under the Fair Work Act

Even after a settlement, employees may have access to protections—such as general protections claims or allegations of coercion.
A rushed or poorly managed process can leave your business vulnerable.

How Strategic HR Australia Can Help You Avoid These Pitfalls

At Strategic HR Australia, we know that workplace investigations and settlements are high-stakes situations. When not handled properly, they can lead to reputational damage, legal exposure, and poor morale.

Our experienced HR consultants and legally-informed practitioners help small businesses navigate these tricky waters with confidence and care.

We offer:

✅ Expert workplace investigations
Structured, impartial processes that meet best-practice guidelines

✅ Drafting & review of settlement deeds
Clear, enforceable agreements that protect your business

✅ Support during negotiation
Behind-the-scenes guidance or neutral third-party facilitation

✅ Training for internal leaders
Equip managers with practical tools and communication strategies

✅ Policy development
Set up fair, consistent processes for terminations, grievances, and disputes

✅ Ongoing HR support
Retainer or project-based services so you’re never left without help

Don’t Let a Dispute Spiral—Get Expert Support Today

If you’re managing a current workplace dispute or want to strengthen your HR processes, we’re here to help. Let’s make sure your business is protected, your people feel respected, and your outcomes are legally sound.

Contact us for confidential support