What counts as serious misconduct in Australia?

Serious misconduct is defined in reg 1.07 of the Fair Work Regulations 2009. It covers (a) wilful or deliberate behaviour that is inconsistent with the continuation of the contract of employment, and (b) conduct that causes serious and imminent risk to the health or safety of a person, or to the reputation, viability or profitability of the employer's business. The regulation expressly includes theft, fraud, assault, sexual harassment, being intoxicated at work, and refusing to carry out a lawful and reasonable instruction consistent with the employment contract. Ordinary poor performance, lateness or 'attitude problems' do not qualify.

Do I still have to pay notice if I dismiss for serious misconduct?

No notice (or payment in lieu) is required — s.123(1)(b) of the Fair Work Act excludes serious-misconduct dismissals from the notice-of-termination provisions. But everything already earned must still be paid: wages up to the dismissal and the payout of untaken annual leave (s.90(2)). Withholding accrued entitlements as 'compensation' for the misconduct is unlawful and turns a defensible dismissal into an underpayment claim.

Can a summary dismissal still be an unfair dismissal?

Yes. Proving serious misconduct answers the 'valid reason' factor (s.387(a)) — it doesn't finish the case. The FWC still asks whether the dismissal was harsh, unjust or unreasonable (s.385), weighing whether you notified the employee of the reason, gave them a chance to respond, allowed a support person, and whether the outcome was proportionate in context — length of service, record, personal circumstances. Employers regularly lose summary-dismissal cases on process and proportionality even where the conduct itself was proven.

What does the Small Business Fair Dismissal Code say about summary dismissal?

If you employ fewer than 15 employees, the Code's summary-dismissal limb applies: the dismissal is deemed consistent with the Code if you believed on reasonable grounds that the employee's conduct was serious enough to justify immediate dismissal — the Code names theft, fraud, violence and serious safety breaches. For theft, fraud or violence, reporting the conduct to police is sufficient (though not essential) evidence of reasonable grounds, provided the report itself is made on reasonable grounds. A hunch without evidence is not reasonable grounds.

Should I suspend the employee instead while I investigate?

Usually, yes. Suspension on full pay removes the immediate risk — to people, funds, systems or evidence — while you investigate properly and run a fair process. It preserves every option: you can still summarily dismiss once the facts are established, dismiss with notice, warn, or clear the person. A premature dismissal destroys those options. Suspension without pay is generally not available unless an award, agreement or the contract specifically allows it.

Does swearing at the boss or one bad day count as serious misconduct?

Rarely on its own. The FWC weighs context and proportionality: a single heated outburst — especially in a workplace where robust language is common, or where there was provocation — has repeatedly been found not to justify summary dismissal. Sustained abuse, threats, or aggression towards customers or colleagues is different. If you're dealing with one bad day from an otherwise good employee, a warning process is almost always the proportionate response.

Summary Dismissal Checker for Employers

Can you dismiss this employee immediately, without notice? Nine questions testing your position against the reg 1.07 serious-misconduct definition, the FWC's s387 process factors and the Small Business Fair Dismissal Code — before you do something irreversible.

Last verified: 23 July 2026

Question 1 of 9

What did the employee actually do?

Serious misconduct is defined in reg 1.07 of the Fair Work Regulations 2009: wilful or deliberate behaviour inconsistent with the employment continuing, or conduct causing serious and imminent risk to health and safety or to the business's reputation, viability or profitability. Pick the closest category.

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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