A Lesson in Honesty: How Dishonesty During an Investigation Can Cost You Your Job

When facing a disciplinary investigation, honesty matters—sometimes even more than the misconduct itself. This principle was at the heart of the case Streeter v Telstra Corporation Limited, where the Fair Work Commission upheld a dismissal based not just on conduct, but on how the employee responded when questioned.

In this case, Ms Streeter, an employee of Telstra, was accused of engaging in sexual activity in a hotel room in front of colleagues during a work-related function. Her co-workers complained, and Telstra launched an internal investigation. Over a series of interviews, Ms Streeter initially denied the allegations before ultimately admitting that the incident had occurred.

The Commission’s focus wasn’t solely on the incident itself—it turned heavily on her dishonesty throughout the investigation. While the conduct was personal and occurred after hours, the fact that it caused disruption in the workplace made it relevant to the employment relationship.

What sealed the outcome, however, was the loss of trust. The Commission found that Ms Streeter’s dishonesty during the investigation meant Telstra could no longer have confidence in her honesty moving forward. This breach of trust, not merely the misconduct itself, justified the dismissal.

The case reinforces a critical point for employees: if you're under investigation at work—no matter how uncomfortable the subject—your duty to be truthful is paramount. Employers are entitled to expect honesty when investigating allegations that may impact the workplace. Misleading or lying during that process can be more damaging than the underlying conduct.

This case is a reminder that in workplace disputes, particularly where serious misconduct is alleged, your credibility can be a deciding factor in whether you keep your job. Even if the original behaviour may not by itself warrant dismissal, dishonesty in the process can tip the balance against you