A Telstra sales representative with 14 years of service was dismissed for having a side business selling mobile phones. The Fair Work Commission (FWC) recently dismissed an unfair dismissal application from a Telstra sales representative with 14 years of service. Telstra terminated the employee for running a side business selling mobile phones. After reviewing the facts, the FWC found the dismissal was not harsh, unjust, or unreasonable.
Defining the Conflict of Interest
The case involved a complex line between work and out-of-hours conduct. A Telstra Manager discovered the side business when a customer entered the store. The customer wanted a replacement for a faulty phone they had purchased privately from the employee. This allegation suggested a direct breach of Telstra’s Code of Conduct and Conflict of Interest Policy.
Evidence of Conduct Breach
The employee denied the allegations but admitted to selling multiple phones in his possession. Management then gathered several pieces of evidence:
- Digital History: The employee used work computers to access sales websites and PayPal.
- Photo Evidence: Gumtree listings used photos found on the employee’s work computer.
- SMS Records: Messages confirmed he held multiple phones for personal sale.
The Manager concluded that a conflict of interest existed. The employee failed to seek approval for this side business and initially denied its existence.
The Fair Work Commission Ruling
The Commission noted that this conduct clearly aligned with a perceived or actual conflict of interest. Although the sales occurred outside of work hours, the Commission found a “sufficient nexus” with his employment. The private sale of handsets directly contradicted his professional obligations. Therefore, the FWC upheld the dismissal as a fair response to the policy breach.
How to Protect Your Business
To avoid unfair dismissal claims when an employee breaches their contract, follow these steps:
- Implement a robust Code of Conduct and Conflict of Interest Policy.
- Train all employees on these specific policies.
- Gather objective evidence before discussing allegations with the staff member.
- Follow a thorough investigation process that ensures procedural fairness.
- Seek professional advice before making a final termination decision.
If you face a similar situation, contact AssuranceHR for expert guidance.
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