The Work Couch: Non-financial misconduct, regulation and the law (Part 2): Key watch-outs before and during an investigation

Welcome to The Work Couch, the podcast where we discuss all things employment.

Later this year, extensive regulatory and legislative reforms will transform how employers tackle bullying, harassment and other toxic behaviour at work. In particular, the Financial Conduct Authority has now finalised its non-financial misconduct guidance, with significant changes coming into force on 1 September 2026. And alongside that, the Employment Rights Act 2025 will introduce a suite of reforms on 1 October 2026, aimed at strengthening protections against harassment at work and changing how employers approach prevention.

So, to help employers navigate and prepare for the new regime, we're devoting our latest three-part mini-series to the topic of non-financial misconduct or "NFM".

In part two, host Ellie Gelder is joined by Kelly Thomson, Partner and ESG Strategy Lead, and Charlotte Reid, Senior Associate, who both work in our Employment, Engagement & Equality team. Together, they explain the nuts and bolts of the investigation itself, including:

• dos and don'ts when triaging a complaint of NFM;
• important questions to ask when planning and scoping an investigation, including who in the organisation should form part of the investigation team;
• the business case for delegating an investigation to an external investigator or law firm;
• common tricky issues, for example anonymous complaints, historic allegations, and whether to suspend the alleged wrongdoer;
• confidentiality and striking the right balance in respect of all parties;
• how to handle the overlap between employment and regulatory processes; and
• Kelly and Charlotte's key practical takeaways.

Listen to part 1 of this Work Couch mini-series: Non-financial misconduct, regulation and the law (Part 1): What’s on the horizon for 2026? and join us for the third concluding part in two weeks' time, when we will discuss practical steps to take after a formal investigation has concluded and how to create - and sustain - a "Speak Up" culture.

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All information is correct at the time of recording. The Work Couch is not a substitute for legal advice.

References

1. ACAS code of practice on disciplinary and grievance procedures