1 min read

Suspicion is not a valid reason for dismissal

The Case

Gates v Blugibbon Pty Ltd (2021)

Blugibbon Pty Ltd, a medical recruitment agency, dismissed Mr Gates on the suspicion of misconduct. During Mr Gates’ employment, he was provided with a laptop that gave him access to Blugibbon’s confidential information. In April 2021, Mr Gates received a warning about his performance and conduct. Thereafter, Mr Gates took personal leave and provided a medical certificate to support his absence.

While Mr Gates was on leave, Blugibbon received an IT report of abnormal download activity on the laptop that the company had provided to Mr Gates. Blugibbon formed the view that Mr Gates was planning to leave his employment and take its confidential information. Blugibbon requested Mr Gates return his work mobile and laptop, and found the laptop had been accessed while Mr Gates was on leave.

Blugibbon dismissed Mr Gates for serious misconduct without putting the allegations to him. Mr Gates filed an application for unfair dismissal with the Fair Work Commission (FWC). He claimed he had used the laptop while on leave to access personal files and employment policies.

The Verdict

The FWC held:

  • Blugibbon’s business was not so sensitive that the act of logging on to the IT system while Mr Gates was on personal leave was a valid reason for dismissal;
  • there was no evidence that Mr Gates had transferred confidential information to himself;
  • there was not a valid reason for summary dismissal;
  • Mr Gates was not provided with procedural fairness in that no allegations were put to him and he was not provided with an opportunity to respond;
  • Blugibbon should have suspended Mr Gates, conducted an investigation and followed a procedurally fair process; and
  • Mr Gates was unfairly dismissed.

The FWC provided him with 6 weeks’ compensation.

The Lessons

Mere suspicion does not provide a valid basis for summary dismissal. An employer must conduct a proper investigation and if findings are made, follow a procedurally fair process.

Please note: Case law is reported as correct and current at time of publishing. Be aware that cases in lower courts may be appealed and decisions subsequently overturned.

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