For my part I do not think the management forecasting has any purchase whatsoever.
Whilst I would not absolutely rule it out at least in part in some very limited circumstances neither does negotiations - that is not why you hold most of the information.
Obviously where relevant legal privilege will bite. Scched 2 Part 3 Para 19
However in my experience the difficult bit here is the factual investigation stuff.
My approach has always been :
1. If it's just about the subject - disclose it.
2. If it's mixed data - e.g. witness statements, who did what to who etc. etc. apply the "Protection of the rights of others" test (old s7(4)) now in Scched 2 Part 3 Para 16. Both confidentiality and the fact that it may prejudice the fair operation of your procedures are clearly relevant circumstances. If you apply this reasonably and diligently ICO would have very limited grounds to interfere - even if he got round to considering before your processes finished.
3. Talk sternly to your HR people and lawyers. If they dither and delay - we all know of disciplinaries and grievances which take years (Google Caerphilly Council Chief Executive suspended - still coming out of my council tax!) the ground is pulled from under you, you probably cannot hold out forever that it is "reasonable in all the circumstances". Eventually the principle of natural justice / unfair interference with human rights will win out over delay.
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