Can you dismiss an employee for serious misconduct that occurred outside work?

While employers do not generally regulate the private activities of employees, out-of-hours conduct may justify disciplinary action, including dismissal, where there is a sufficient connection between the conduct and the employment relationship.

This connection will be established with out-of-hours conduct justifying dismissal where the conduct:

is likely to cause serious damage to the relationship between the employer and employee;
damages the employer's interests; or
is incompatible with the employee's duties as an employee.

Violence or other serious misconduct involving colleagues may justify dismissal where it undermines workplace safety, trust and confidence.

In Bell v Arts Centre Melbourne (2026), the Fair Work Commission (FWC) considered whether the dismissal of an employee following a physical altercation with a colleague after a work Christmas function was harsh, unjust or unreasonable.

Although the employer had not organised or authorised the gathering that followed the Christmas function, the FWC found there was a sufficient connection between the conduct and employment. In reaching that conclusion, the FWC noted the incident occurred shortly after the work function, in close proximity to the workplace, and involved employees who had attended the function together.

The FWC also placed significant weight on the impact of the incident on the other employee, who reported being shaken by the assault, fearful of working alone and concerned about future interactions with the employee in the workplace. The FWC found these ongoing effects had consequences for workplace safety, wellbeing and working relationships, all of which the employer was entitled to consider in determining whether the employment relationship could continue.

In those circumstances, the FWC concluded the conduct was likely to cause serious damage to the employment relationship, and was inconsistent with the employee's contractual and workplace obligations. The dismissal was therefore not found to be unfair.

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