Employers urged to take early legal advice and independent investigators for complaints made against senior leaders
Xero's apology over its handling of a 2017 whistleblower complaint against its founder is a reminder for employers to get it right when allegations involve senior leaders.
The accounting software company in late October "unreservedly" apologised to former employee Ally Naylor and other past staff after an independent review, conducted by Maria Dew KC, of how it handled the complaint.
Naylor alleged, in a Stuff investigation, multiple instances of unwanted sexual contact by founder Rod Drury at his apartment while he was chief executive nearly a decade ago. Drury told Stuff the relationship was "consensual and mutual," which Naylor rejects.
Asked by HRD how employers should handle complaints involving senior leaders, Jim Roberts, partner at Hesketh Henry, said the starting point is simple.
"Generally speaking, the key is not to ignore the complaints! Just as important, do not jump to any conclusions!" he said.
Act quickly and get advice
Roberts underscored that speed matters once a complaint is raised.
"Depending on the nature of the complaints, you will likely need to investigate the allegations as soon as possible," he said.
Roberts said employers should also consider bringing in lawyers early, as the details of a complaint will shape how it should be investigated.
"We recommend that you take legal advice from the outset, as the type of complaint, the circumstances in which it arises, and the identity of the affected parties may affect the type of investigation that you embark on," he added.
Go independent when leaders are involved
Where the complaint concerns those at the top, Roberts said an outside investigator may be needed.
"You may want to consider an external and independent investigator, especially if the board or senior leadership are involved," he said.
Roberts also urged employers to be fair to both sides while an investigation is under way.
"You should treat all involved with dignity, until you can safely reach a conclusion," he said. "Also, provide appropriate support for all involved, particularly if the injured party and alleged offender are currently employed by or a director of the employer."
Xero's commitments
In Xero's case, it has since committed to appointing independent investigators for serious complaints involving senior executives or directors. Whistleblowers will also be able to report concerns to a third-party organisation.
The company said it will give clearer guidance on its whistleblowing and serious complaint-handling process, offer additional wellbeing support to all whistleblowers, and communicate outcomes more clearly.
It will also contribute to the cost of independent legal advice for employees who raise sexual harassment complaints involving senior executives or directors.
On risk management, Xero will refresh its integrated Positive Duty response plan and risk framework, develop more integrated monitoring and reporting of incidents, and run more targeted employee surveys and exit interviews.
Its board will also receive expanded specialist training on sexual harassment risks, complainant disclosure, and trauma-informed approaches.
The measures build on earlier changes made since the 2017 complaint. These include updates to its Code of Conduct and people practices, new policies on workplace relationships, and the implementation of Australia's Positive Duty laws across its global operations.
