Determining whether it is lawful to terminate an employee for breaching company policy requires consideration of the unique circumstances of each case. Generally, however, termination may be justified if the breach results in unlawful conduct, such as bullying, harassment, or discrimination.
Importance of Clear Policies and Fair Investigations
Employers must have well-drafted policies and codes of conduct in place, alongside a systematic approach to investigating workplace complaints. This was highlighted in the Fair Work Commission case Peter Carroll v Karingal Inc (2016), where a breach of workplace policy was upheld as grounds for termination.
The Case: Peter Carroll v Karingal Inc (2016)
Peter Carroll, an audit and risk manager at Karingal, was accused of micromanaging and belittling his employees, particularly those with inferior English skills. He was also found to have imposed excessive administrative tasks on his team, which encroached on their time.
Karingal conducted an independent inquiry and placed Carroll on home leave during the investigation. The inquiry concluded that Carroll’s behaviour breached Karingal’s code of conduct, work health and safety policies, and anti-bullying and harassment guidelines. Carroll was terminated and subsequently filed an unfair dismissal claim.
Unfair Dismissal and Legal Framework
Under the Fair Work Act 2009 (Cth), a dismissal is deemed unfair if it is harsh, unjust, or unreasonable. The Fair Work Commission examines whether:
- There was a valid reason for dismissal related to conduct, including its impact on the safety and welfare of others.
- The employee was notified of the reason and given an opportunity to respond.
- The dismissal followed fair processes, including support options for the employee.
Karingal justified Carroll’s dismissal based on his sustained bullying of staff, which was considered a breach of their workplace policies. Carroll was aware of the policies, which stated that breaches would be addressed through informal or formal methods.
The Fair Work Commission’s Decision
The Commission accepted the complainants’ evidence, finding that Carroll’s behaviour caused them stress, anxiety, and a negative impact on their safety. Despite Carroll’s good intentions, his actions were deemed bullying, and the termination was upheld as lawful.
Key Takeaways for Employers
1. Clear Policies
Employers must have well-written codes of conduct and workplace safety policies, including anti-bullying and harassment protocols. These documents can serve as key evidence when justifying actions like termination.
2. Employee Awareness
Policies should be made available to all employees, ideally during induction and whenever updates occur. Obtaining acknowledgment from employees (e.g., via signature) ensures they understand company expectations.
3. Fair Procedures
Employers must adopt fair procedures when handling complaints. This includes allowing employees to comment on reports and ensuring independent investigations are conducted.
4. Consistency and Reasonableness
Employers must ensure policies are reasonable, fairly implemented, and protect employees from harsh or discriminatory treatment.
Conclusion
A serious breach of company policy, especially when it involves unlawful conduct such as bullying or harassment, can justify termination. Employers should have clear policies, communicate them effectively to employees, and follow fair and consistent procedures when addressing workplace complaints.
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