A Bank Manager who had been employed for eight years was asked to finalise a loan payment. She then received an email from a customer with the account details the funds should be deposited into. Following further emails back and forth, the bank manager arranged for the funds to be transferred.

Unfortunately, the emails were not from the customer. They were from a fraudster.

When the real customer contacted the bank to locate the missing funds the issue was uncovered and referred to the internal investigations team. The investigation revealed the bank manager had failed to comply with various policies including the requirement to identify the customer.

The employer concluded it had lost trust and confidence in the Manager and decided dismissal was an appropriate disciplinary outcome.

The decision

The Fair Work Commission considered several mitigating factors including the pressure to process payments in the wake of the COVID-19 pandemic, the Bank Manager’s length of service, and notably that no training was provided to the employee in relation to what steps should be taken to detect and avoid fraudulent activity.

Commenting that the Bank Manager’s conduct “came close, but did not cross the line, between carelessness and negligence” the Commission found the dismissal was harsh.

Noting the Bank Manager expressed regret and remorse and conceded action could have been taken to avoid the mistake, the Commission was not satisfied the conduct did not prevent the employee from being reinstated.

The Commission ordered the Bank Manager to be reinstated and compensated for lost remuneration.

Learnings for business

This case highlights the importance of a thorough investigation, considering all the circumstances including aggravating and mitigating factors. It is important that businesses provide regular training and refreshers for all employees to support them in their role and to keep records.

Finally, when considering what disciplinary outcome is appropriate businesses must take a fair and proportionate approach having regard to several factors - not simply the misconduct.

How Victorian Chamber can help

Before considering the dismissal of an employee, call the Victorian Chamber Workplace Relations Advice Line on (03) 8662 5222 to discuss and confirm your obligations as an employer.

The Victorian Chamber also have specialised Consultants who can assist your business with strategic advice in navigating employment relations issues, delivering training in various Workplace Relations or Occupational Health and Safety matters or representing your business in the Fair Work Commission.

[2021] FWC 2060