Misconduct policy template
A comprehensive framework for addressing employee misconduct fairly and lawfully. Covers definitions, investigation procedures, disciplinary actions and procedural fairness aligned with Fair Work requirements.
Misconduct policy
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Why you need a misconduct policy
Workplace misconduct ranges from minor breaches of policy to serious matters that can warrant immediate dismissal. Without a clear policy, you risk inconsistent treatment of employees, unfair dismissal claims, and a workplace culture where boundaries are unclear.
A misconduct policy defines what behaviour is unacceptable, how allegations will be investigated, and what consequences apply. It ensures employees know the standards expected and that disciplinary action follows a fair, documented process.
Under Australian workplace law, procedural fairness is essential before taking disciplinary action. This means employees must know the allegations against them, have an opportunity to respond, and have their response genuinely considered. Your policy should embed these requirements into every disciplinary process.
Key elements your policy should cover
Essential components of an effective misconduct policy
Misconduct definitions
What constitutes misconduct vs serious misconduct.
Investigation process
How allegations are investigated fairly.
Disciplinary steps
Progressive discipline from warning to dismissal.
Procedural fairness
Right to respond and be heard before decisions.
Documentation
What records must be kept throughout the process.
Summary dismissal
When immediate termination may be appropriate.
What's included in this template
A complete framework for managing workplace misconduct
Purpose & scope
Why a misconduct policy matters and who it applies to.
Policy statement
Core principles of fair disciplinary management.
Definitions of misconduct
Clear examples of misconduct and serious misconduct.
Reporting misconduct
How to report suspected misconduct.
Investigation procedures
Steps for investigating allegations fairly.
Procedural fairness
Employee rights during investigations and hearings.
Disciplinary outcomes
Range of possible disciplinary actions.
Progressive discipline
Escalating consequences for repeated misconduct.
Summary dismissal
Circumstances warranting immediate termination.
Appeals process
How employees can appeal disciplinary decisions.
Common misconduct scenarios
How your policy should address typical situations
Theft or fraud
Theft of company property or money, falsifying timesheets, or fraudulent expense claims are typically serious misconduct that may warrant summary dismissal. However, you still need to investigate properly and give the employee an opportunity to respond before making a decision. Your policy should be clear that these matters are treated seriously.
Insubordination
Refusing to follow reasonable and lawful instructions can be misconduct, but context matters. A one-off disagreement handled poorly is different from persistent refusal to perform duties. Your policy should distinguish between minor incidents warranting a warning and serious insubordination that may justify stronger action.
Workplace harassment or bullying
Allegations of harassment or bullying require careful investigation. Your policy should cross-reference your harassment and bullying policy, ensure confidentiality during investigations, and provide support for both the complainant and the accused. Serious or repeated harassment may constitute serious misconduct.
Intoxication at work
Attending work intoxicated or under the influence of drugs is typically serious misconduct, especially in safety-sensitive roles. Your policy should be clear about expectations, testing procedures if applicable, and consequences. However, also consider whether the employee may have a substance abuse problem requiring support alongside disciplinary action.
Who should use this template?
Any business that needs to manage employee conduct
Legal disclaimer
This template is designed to reflect Australian workplace standards and Fair Work principles at the time of publication. It is provided as a general guide only and does not constitute legal advice.
Disciplinary matters and terminations must comply with Fair Work Act requirements including procedural fairness. What constitutes valid reason for dismissal and adequate procedural fairness depends on specific circumstances. For serious disciplinary matters or potential dismissals, we strongly recommend seeking independent legal or HR advice.
Regulatory sources
This template is aligned with Australian employment and performance management requirements.
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Misconduct policy FAQ
- Yes. This template provides a solid foundation, but you should tailor it to reflect your specific workplace, management structure, and any applicable modern award or enterprise agreement. Ensure procedures align with Fair Work requirements for procedural fairness.
- Distribute the policy during onboarding for new employees and via email or team meetings for existing staff. Have employees sign an acknowledgement form confirming they have read and understood the policy. Using HR software with policy management can automate tracking of acknowledgements.
- Misconduct is behaviour that breaches workplace rules or standards (e.g., repeated lateness, policy breaches). Serious misconduct is conduct so serious it makes continued employment unreasonable (e.g., theft, violence, fraud, serious safety breaches). Serious misconduct may warrant summary dismissal. Learn more about employee discipline.
- Yes, serious misconduct can justify summary dismissal without notice. However, you must still follow procedural fairness — investigate the allegations, inform the employee of the allegations, and give them an opportunity to respond before making a decision. See our guide on how to terminate an employee.
- Yes. Under the Fair Work Act, employees should be allowed a support person in meetings that could result in dismissal. The support person provides emotional support but typically cannot speak on behalf of the employee or act as an advocate.
Related guides
Learn more about implementing this policy
How to conduct a performance review
Step-by-step guide to running effective performance reviews.
Read guideHow to terminate an employee fairly
Fair employee termination covering legal requirements.
Read guideHow to onboard a new employee
Complete onboarding checklist for Australian businesses.
Read guideRelated templates
Complement your misconduct policy with these related documents
Code of conduct policy
Sets behavioural expectations that define what constitutes misconduct.
View templateTermination of employment policy
Process for ending employment when misconduct warrants dismissal.
View templateHarassment & bullying policy
Specific policy for harassment and bullying misconduct.
View templateDisclaimer
This document is a general HR template provided for informational purposes only. It is not legal advice and may not reflect the latest changes in legislation or apply to every workplace situation. RosterElf Pty Ltd and the template provider accept no liability for any loss arising from reliance on this document. Users should seek independent legal advice and customise the template to ensure it complies with all relevant laws, awards and workplace requirements.