The Case

Mr Farrelly alleged he had been unfairly dismissed after his employment was summarily terminated for using a corporate credit card to buy two cartons of beer for a Christmas party.

The employer, Seasonair Pty Ltd (Seasonair), argued that Mr Farrelly’s employment was terminated as a result of serious misconduct arising from the misuse of a corporate credit card. The Christmas party was unauthorised and Mr Farrelly had attempted to disguise the misuse of the credit card as a “supplier gift”.

Seasonair had inducted Mr Farrelly into the company policy on the use of the credit card before issuing him with one.

The Verdict

The Fair Work Commission (FWC) held that Mr Farrelly was not unfairly dismissed. The FWC found that Mr Farrelly had been properly inducted into the proper use of the company credit card, and that he had knowingly or recklessly breached the policy and deliberately tried to disguise its misuse as a “supplier gift”. In those circumstances, summary dismissal was warranted.

Lessons

It is important to properly induct employees into all company policies and procedures if you want to be able to enforce them and decrease the risk of legal claims arising from non-compliance. As employees are inducted, it is recommended that each employee sign off that they have read and understood the policy and procedure and have been properly inducted.

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.