21/10/2026
What happens when an employee is facing serious criminal charges, is being held in custody and cannot attend work? Does the employer have grounds to terminate their employment?
This was the issue considered by the Fair Work Commission after an employee was dismissed while being held on remand, leaving him unable to fulfil his employment obligations.
While the Commission acknowledged that the employee's ongoing inability to attend work could constitute a valid reason for dismissal, the employer's decision was not based solely on his absence. The Commission found that unproven criminal allegations had also influenced the decision to terminate his employment.
The distinction proved significant.
Despite the employee being unable to perform his duties, the Commission determined that the dismissal was unfair and ordered his reinstatement, together with partial reimbursement of lost remuneration.
The case serves as an important reminder that even where an employer has legitimate operational concerns, the reasons underpinning a dismissal and the process followed can ultimately determine whether that dismissal is lawful and defensible.
An employee being charged with a criminal offence is not the same as being found guilty. Employers must distinguish between the allegations themselves and the actual impact an employee's circumstances have on their ability to perform their role.
While employers are not necessarily required to hold a position open indefinitely, decisions must be based on substantiated facts, legitimate employment considerations and procedural fairness.
A potentially valid reason for dismissal does not guarantee a fair dismissal. What matters is not only the decision an employer makes, but how and why they make it.