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Compensation ordered to employee who committed overtime fraud

An employee who was claiming overtime twice for duties carried out at the same time became engaged in an employment dispute and was subsequently terminated. The Fair Work Commission ordered reinstatement of the employee (even though misconduct was proven) after he appealed the dismissal. Another judge then decided that reinstatement was not appropriate and awarded the employee $59,050 compensation.

The last thing any business wants, is having to reinstate an employee (or pay compensation to an employee) who has carried out fraudulent activity because policies or procedures were non-existent or inadequate. The following security measures would assist businesses, to reduce the risk of a similar incident occurring in their business:

  • A clear company Code of Conduct Policy
  • Security training and awareness in the workplace
  • Policy and procedures for claiming overtime to eliminate any ambiguity in the process
  • Investigation procedures in place ensuring that allegations of misconduct are investigated in consideration of procedural fairness and natural justice
  • Proper and timely management of personnel HR issues

https://www.fwc.gov.au/documents/documents/summaries/2013fwc8734_summary.htm