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Fraud Investigations

Can an employer read an employee's private emails during an investigation?

Generally, no. Employers can inspect professional emails on company servers if prior notice was given via policy, but accessing personal accounts violates privacy laws unless there is a court order.

What if the employee refuses to answer questions?

An employee has the right not to incriminate themselves. However, refusal to cooperate in an internal investigation can sometimes be grounds for disciplinary action depending on company policy and the Labor Code.

How long does a fraud investigation take?

It depends on complexity. Simple cases take 1-2 weeks, while complex financial audits involving forensic data recovery can take months. Legal specialists ensure the process is expedited.

Can we fire an employee based on suspicion alone?

No. Georgian labor law requires substantiated grounds for termination. Firing on mere suspicion will likely lead to a court ordering reinstatement and back pay.

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Workplace fraud investigations involve a complex legal and procedural process aimed at detecting and documenting employee misconduct, financial manipulation, embezzlement of corporate resources, and other forms of malfeasance. As businesses in Georgia grow, companies increasingly face risks of internal corporate crime, which requires not only thorough verification of suspicions but also investigations conducted in full compliance with the law. An improperly conducted internal investigation often leads to litigation, where the employer may be liable for compensation for wrongful termination or violation of privacy rights. Therefore, the involvement of qualified lawyers in this process is critically important.

What Does the Fraud Investigation Service Cover?

A workplace investigation goes beyond simply checking suspicions; it is a structured process of evidence collection. Specialists registered on the Legal.ge platform offer the following services:

  • Audit and Analysis of Financial Documentation: Detailed examination of suspicious transactions, invoices, contracts, and accounting records to detect traces of fraud.
  • Electronic Data Collection: Lawful inspection of corporate emails, computer systems, and servers in compliance with the requirements of the Law on Personal Data Protection.
  • Interviews and Taking Explanations: Questioning witnesses and alleged offenders with legally sound minutes/protocols, which can later be used in court.
  • Assessment of Internal Control Systems: Identifying existing weaknesses that facilitated the fraud and developing recommendations for prevention.
  • Preparation of Legal Opinion: Drafting a conclusion based on the obtained evidence, determining the grounds for termination of the employment contract or initiation of criminal proceedings.

Common Real-World Scenarios

Employers often require legal assistance in the following situations:

  • Misappropriation or Embezzlement of Funds: When an accountant or financial manager performs suspicious transfers or manipulates cash transactions.
  • Conflict of Interest and Kickbacks: When a procurement manager signs contracts with related parties or accepts bribes from suppliers.
  • Leakage of Corporate Information: Transferring trade secrets or client databases to competitors for personal gain.
  • Falsification of Documentation: Artificially inflating business trip expenses, submitting fake invoices, or falsifying warehouse inventory records.
  • Misuse of Assets: Systematic use of company vehicles, equipment, or other resources for personal purposes.

Georgian Legislation and Legal Framework

Investigation of workplace fraud is regulated by several legislative acts, the violation of which can create serious problems for the employer. First and foremost, the Labor Code of Georgia defines the grounds for termination of an employment contract (Article 47), including gross violation of obligations. However, the fact of the violation must be documented.

At the same time, compliance with the Law of Georgia on Personal Data Protection is crucial. Checking an employee's email correspondence or video surveillance recordings is subject to strict regulations. Evidence obtained illegally will not be accepted by the court, and the company may be fined by the Personal Data Protection Service.

If the action contains signs of a criminal offense, the Criminal Code of Georgia comes into play, specifically articles regarding fraud (Article 180), misappropriation or embezzlement (Article 182), and abuse of managerial authority (Article 220). A qualified lawyer ensures that the investigation materials comply with criminal procedural norms.

Step-by-Step Process with a Specialist

The involvement of a professional lawyer makes the investigation process organized and effective:

  1. Initial Consultation and Planning: The lawyer reviews the initial suspicions and establishes an investigation strategy to prevent the destruction of evidence by the suspect.
  2. Evidence Collection: Obtaining documentation, electronic files, and other materials through legal means (e.g., sealing by commission).
  3. Conducting Interviews: Questioning employees. It is important that this process does not turn into coercion or threats, which could later become a subject of dispute.
  4. Final Report: Preparation of a legally substantiated conclusion detailing the violations and liability measures.
  5. Subsequent Actions: Formalizing the termination of the employment contract or handing over materials to the Prosecutor's Office.

Why Choose a Specialist on Legal.ge?

Internal investigations require not only legal knowledge but also a delicate approach and a high standard of confidentiality. Legal.ge features experienced specialists who have practical experience in labor disputes and corporate investigations. The platform allows you to find an expert who will protect your company's interests, ensure the full legality of the process, and help you avoid reputational risks and financial losses.

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