The applicant was Director of Corporate and Legal Services at the respondent local government. After being summarily dismissed from the position following an investigation into a pay banking arrangement into which he had entered, the applicant lodged claims with the Commission alleging that he was unfairly dismissed and denied contractual benefits.

The applicant argued that his intention for the pay banking arrangement was to save for retirement, noting that while the arrangement was undocumented, his reduced pay appeared on payslips, and full pay was recorded in the respondent’s records. He claimed that the investigation was inadequate and that there were no reasonable grounds for believing he had committed misconduct. He sought reinstatement, compensation for unfair dismissal, and full payment of denied benefits.

The respondent contended that the arrangement was questionable and exposed them to compliance and governance risks, including breaches of the employment contract, the Fair Work Act 2009 and the Code of Conduct. They asserted that they had reasonable grounds for believing misconduct had occurred and that the investigation was properly conducted.

Commissioner Tsang considered whether the respondent’s legal right to dismiss the applicant was exercised harshly or oppressively, concluding that the respondent had reasonable grounds for an honest and genuine belief that the applicant's conduct warranted summary dismissal. Consequently, the Commissioner dismissed the applications.

The decision can be read here.