In a recent decision the Fair Work Commission has found that an employee was fairly dismissed for failing to disclose her involvement in a competing business and for breaches of confidentiality.
The Facts
The employer provided property management software to clients in the real estate and property industry.
The employee commenced employment with the employer on 10 June 2024 as a Software Training Assistant and Support Officer.
Her employment agreement provided that she would not hold another position that may conflict with the performance of her duties, or engage in activities that may adversely affect the goodwill of the employer’s clients.
Her employment agreement also had confidentiality obligations.
On 29 April 2025 the employer found the employee’s profile on a website for a real estate business, Global Property, identifying her as a director of the business alongside her husband, and containing her contact details.
The employer was concerned that Global Property was in direct competition with the employer’s clients and that Global Property would be interested in the employer’s confidential information.
Later that day the employer emailed her raising its concerns and inviting her to a meeting.
In a meeting the employee said her husband created the profile without her knowledge, she did not have a contract with Global Property, and had not completed any work for them.
The employer’s further search revealed a profile on Realestate.com identifying that she had sold 3 properties and had listed 2 further properties under her name on behalf of Global Property.
On 9 May 2025 the employer sent her a letter requiring her to show cause as to why her employment ought not be terminated and invited her to a meeting. In the meeting the employee continued to maintain she had no involvement in the listing or sale of the properties advertised on realestate.com.
On 12 May 2025 the employer summarily terminated the employment.
After the termination, the employer identified that, during the employment, the employee had sent an email from her work email address to her personal email address, attaching an Excel spreadsheet containing a list of potential clients.
The employer wrote to her requiring an undertaking that she would comply with her confidentiality obligations under her employment agreement. She responded that she had did not have confidential information and declined to give an undertaking.
The employee applied for unfair dismissal.
The Decision
The Deputy President dismissed the application, finding that:
- The employee was complicit with her husband in placing her profile on Global Property’s website.
- She had been employed by Global Property on a casual business, although she had not signed an employment agreement.
- She had attempted to conceal from her employer the full scope of her involvement with Global Property.
- Her denial to her employer that the phone number listed as her contact number on the Global Property profile was hers was a deliberate lie, intending to conceal the true nature of her involvement with Global Property.
- Her conduct was sufficiently serious to amount to serious misconduct within the meaning of the Fair Work Regulations.
- The employer had followed a fair process, and the dismissal was otherwise fair.
Implications
Employers are reminded of the value of:
- Having employment agreements that clearly state the standards required in the workplace.
- Following a careful process before dismissing an employee, amongst other things giving the employee an opportunity for input to the reasons for dismissal.
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