Talk to everyone identified by the employee and the alleged harasser as witnesses. Limit the potential for continuing harm by separating the victim from the alleged harasser. If necessary, suspend the alleged harasser with or without pay pending the outcome of your investigation. Based upon the results of your investigation, take appropriate disciplinary action up to and including termination and referral of criminal conduct to law enforcement authorities. Meet with the employee to inform him or her that you have concluded the investigation and have either been unable to substantiate the claim or have taken disciplinary action.
Some employers wonder whether they are bound to take the action requested by a victim of harassment.
The answer is no. You do, however, need to take effective action to stop any harassment. In doing so, you should follow to the letter any written policies you have adopted. Never punish the complaining employee by requiring him or her to transfer to a different position or forego favorable working conditions. If, after investigation, you find that there is no support for the complaint, you should meet with the employee to explain the reasons why you are not taking disciplinary action.