does that means that your workflow is started by 'EmployeeName'? ie. all the actions, apart ones in mentioned action set, run with credentials of 'EmployeeName'

where exactly your workflow fails? on the set permission action?

do you by any chance perform any other item updates/changes after the permission change?

Note that at the end workflow updates its status column on the list so there is one 'silent' update anyway. I would say this the point where your workflow fails.

Thanks for your reply.

That's correct, it gets started and runs actions like, updating list columns and sending email under 'EmployeeName'.

There are 2 action sets, the one I have mentioned which sets the variable and permissions and a secondary one which is a 'run if'. This will need to do a similar action to the first Action set plus additional updating of columns.

It fails on setting the variable. It doesn't actually get to setting the permissions action.

I do, I have an update item action first and then I set the variable and permission. I did place a comment pending changes in between them.

so it doesn't  have anything to do with your permission change.

is the set action screenshot from the question the set action in the piece of workflow you provided now?

then I would check whether there are correct permissions configured for EmployeeName who running workflow on 'Appraisal security groups' list and/or items.

Yeah it is the same except the screenshot of setting the workflow variable comes just under the 'remove permission step' in the workflow image I just sent.

EmployeeName has access to the 'Appraisal security groups' list and the workflow owner has full control.

The action set setting this variable shouldn't be run under the EmployeeNames permissions anyway? It should be my workflow owner who has full control.

sorry if I confused you.

I haven't said problem is in set variable action. I just asked to have an idea what does set action really do.

imho the problem is with update action. the change defined by update action is effectively performed by the commit action. so if the update fails it may seem as if workflow failed on set variable (next step).

update action is still executed with EmployeeName's credentials. so check update item action configuration.

maybe you query some other list(s) apart from  'Appraisal security groups'  that the EmployeeName miss the rights

You were right! It was the action before, 'update item' that was causing the problem. I moved that action into the action set and now it runs all the way through.

Thank you for all your help!!!