WorkSafe is investigating the circumstances surrounding the death of a Warrnambool City Council employee at a council site.
The investigation centres on allegations of bullying and harassment.
A spokesman for WorkSafe said the organisation would not comment while the investigation was being carried out.
The death happened late last year.
At that time police also investigated the same incident but a spokesman said no action was being taken.
WorkSafe was contacted at that time but had not initiated an investigation.
Now further information has been provided to the regulator which has sparked inquiries.
It's understood council officers are in the process of being interviewed.
There has been no time frame set for when the investigation is expected to be completed.
Warrnambool City Council chief executive officer Peter Schneider said thehealth and well being of staff was paramount to the council.
"Council would always co-operate with WorkSafe on any investigation and is committed to providing any information WorkSafe requires," he said.
Confirmation of the investigation comes after two long-time councillors raised issues about a "toxicity" and "serious culture issues" within the council. Neither gave specific examples.
Last week long-time councillor Peter Hulin spectacularly resigned from the council, saying he could no longer work with his fellow councillors and an organisation that he said wasn't "open or transparent".
He said there was bullying within the council and "regular reports of toxicity in the workplace".
"That is not acceptable to me," he said.
Then on Monday another long-term councillor Mike Neoh said he was prepared to be sacked for speaking out about cultural and communication issues at the council.
Cr Neoh said he had plenty of concerns about council processes over the past six to 12 months.
He said he believed there were "serious cultural issues" within the organisation.
"I welcome any investigation on serious matters regardless of the issues," he said on Wednesday.
In relation to cultural issues, Mayor Tony Herbert said there were "a number" of investigations under way at the council to "weed out the individuals that are acting negatively towards other members of staff".
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