Fired for Fraud? What You Need to Know About Workplace Misconduct
If you've been accused of fraud at work, the consequences can be severe. But not every accusation leads to a lawful dismissal. In Australian employment law, the term "fraud" covers a range of behaviours—from falsifying timesheets to misusing company resources for personal gain. However, for a dismissal to be considered fair under the Fair Work Act, certain legal standards must be met.
Fraud typically involves deliberate deception to gain an advantage or cause a loss. Common examples include:
Submitting false invoices
Stealing petty cash
Falsifying hours worked
Misusing company credit cards or resources
Faking documents or approvals
These actions may be labelled as serious misconduct, which under regulation 1.07 of the Fair Work Regulations, includes conduct that is willful or deliberate and inconsistent with the continuation of the employment contract. It can also include theft, fraud, or assault.
Even in cases of alleged fraud, employers must still follow a fair process. The Fair Work Commission has repeatedly held that even serious allegations require procedural fairness—that is, a fair process.
This means:
You must be clearly told what you are accused of
You must be given a genuine chance to respond
The employer must investigate fairly and consider your response
The evidence must support the conclusion
If an employer jumps the gun—especially without solid proof—the dismissal could be ruled harsh, unjust or unreasonable, even if the conduct was serious.
In past Commission decisions, even where an employee was suspected of dishonesty, the employer’s failure to investigate properly or consider alternative explanations led to a finding of unfair dismissal.
For example, if you were dismissed for allegedly taking discarded company property (like unused materials or waste stock), but had reason to believe it was authorised, or it was common practice among staff, the Commission might see your termination differently—especially if you weren’t warned, consulted, or given a chance to explain.
On the other hand, if there is clear, deliberate deception—such as falsifying documents to obtain money—and the employer followed a reasonable process, the dismissal will likely stand.
Key Takeaways
Allegations must be investigated properly. Your employer can’t rely on assumptions.
You must be given a chance to respond. A fair process is still required, even for serious claims.
Misconduct must be proven. Suspicion alone is not enough.
Your intent matters. Honest mistakes or unclear policies can significantly affect how the Commission views your case.
