6 Employee Misconduct Myths You Must Stop Believing

When it comes to handling employee misconduct, many business owners operate under common misconceptions, ones that can lead to costly mistakes. You might think you can dismiss an employee on the spot for serious misconduct or stop giving shifts to a casual worker without consequence. But the reality is quite different, and skipping steps can land you in hot water with Fair Work.

In this article, we’re breaking down 6 myths about employee termination and disciplinary action, so you can avoid legal risks and handle staff issues the right way.

Myth 1 - "I can dismiss an employee for serious misconduct"

Many employers assume that if an employee commits serious (gross) misconduct, they can be dismissed on the spot. However, even in cases of theft, violence, or negligence, you must follow procedural fairness. Instant dismissal without an investigation or a chance for the employee to respond often lead to an unfair dismissal claim, even if their actions seem to justify termination.

✅ What to do instead: Conduct a fair and impartial investigation, look at the facts, gather evidence, document the process, and provide the employee with an opportunity to respond before making a final decision.

Myth 2 - "I need to give a warning in writing every time"

While written warnings are a key part of documenting performance issues, they're not necessarily mandatory. Verbal warnings can also be valid, particularly for minor issues. However, the biggest mistake we see employers make is failing to keep records of these conversations. If there’s no documentation, it’s as if the conversation never happened.

✅ What to do instead: Use a mix of verbal and written warnings based on the situation. Always document any verbal warnings in your notes or employee records for future reference.

Myth 3 - "I can fire someone if they repeatedly do the wrong thing"

Repeated mistakes or ongoing poor performance don’t automatically justify termination. Fair Work requires employers to follow a structured disciplinary process, including clear expectations, warnings, and a reasonable opportunity to improve their performance or behaviour.

If an employee is not meeting expectations, but you haven't communicated clear consequences or provided support, you may struggle to justify a fair dismissal.

✅ What to do instead: Implement a performance improvement plan (PIP), set clear KPIs, and provide documented warnings before considering termination.

Myth 4 - "If I'm not happy with a casual employee, I can just stop giving them shifts"

Casual employees are often assumed to have no job security, but this isn’t entirely true. If a casual has worked regular and systematic shifts over time, they may be entitled to unfair dismissal protections. Suddenly cutting their hours without a sound process could lead to a general protections claim or an unfair dismissal claim if they argue their employment was terminated.

✅ What to do instead: If performance or conduct is an issue, have a conversation first. Provide feedback, document concerns, and if necessary, follow a fair disciplinary process before reducing or stopping shifts.

Myth 5 - "A single incident isn’t enough to take disciplinary action"

Some employers believe that unless an employee repeatedly makes mistakes, disciplinary action isn’t warranted. While repeated issues may justify a PIP, some behaviours - such as theft, violence, discrimination, or safety breaches - can result in immediate action.

You don’t need to wait for a pattern to emerge if the incident is serious enough to impact business operations, safety, or workplace culture.

✅ What to do instead: Assess each case based on its severity and impact. Minor issues may warrant counseling or coaching from you, but serious misconduct should be addressed immediately through a fair investigation and formal action.

Myth 6 - "If I do everything by the book, Fair Work won't get involved"

Even if you follow all the correct steps, and afford procedural fairness to the employee, they can still make claims with the Fair Work Commission. Having well-documented policies and fair procedures reduces your risk, but it doesn’t eliminate it entirely. If an employee believes they were unfairly treated, they still have the right to challenge disciplinary actions, even if you acted lawfully.

✅ What to do instead: Ensure your processes are clear, consistent, and well-documented. Employees often turn to Fair Work when they feel unfairly treated. You can greatly reduce this risk by maintaining transparency, openly communicating decisions, and making sure employees understand the reasoning behind them.

Handling employee discipline correctly is critical to protecting you and your business. Mismanaging the process can lead not only to unresolved performance issues, but also to draining legal claims.

"Step Up or Step Out" - Not all your employees deserve to be on your payroll!

Running a successful business is hard enough, and if an employee is dragging it down, it's crucial to ensure they play their part. If you need expert HR support to handle staff issues properly, we've created a solution for busy business owners.

Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225  

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