Serious Misconduct Doesn’t Always Justify Summary Dismissal

A common misconception is that serious misconduct automatically justifies summary dismissal - this recent decision reminds us that’s not always the case, and of the importance of independent and impartial investigations!

The recent decision in Haley v Laing O'Rourke Australia Management Services Pty Ltd (No 8) [2024] FedCFamC2G 779 serves as a cautionary tale to employers. 

In this decision, the court awarded $1.5 million to the applicant for adverse action and repudiation of contract. This included compensation for loss of income (including future loss of income), incidental costs (including legal fees and relocation costs), and for hurt, distress and humiliation. This damages award was substantial, nothing the employee’s salary was $400K at the time of dismissal. 

The court found that the respondent took adverse action against the applicant because the applicant exercised a workplace right. About a month before the alleged serious misconduct, the applicant had made a complaint to the respondent, stating that he felt 'overwhelmed and overworked' and that his workload was impacting his personal life. 

The court also found that the employee, who had been employed with the respondent for 17 years, was wrongfully dismissed following a flawed investigation process, and a poorly handled dismissal process.

Key Lessons for Employers 

Serious misconduct does not automatically justify summary dismissal.

A poorly handled workplace investigation will expose employers to risk (commercial and reputational).

It is prudent that workplace investigations are conducted by suitably qualified and experienced investigators.

All of the circumstances should be carefully considered before deciding what action shall be taken against an employee (even if serious conduct is substantiated). 

Norfolk Workplace Consulting’s experienced and licensed investigators can help you navigate the risks associated with dismissal. Our investigators offer independent, thorough workplace investigations, ensuring that your sensitive workplace matters are handled with professionalism and integrity. 

Need support? Contact us today for expert advice. 

Licence No. 82072