In my opinion, a valid summary dismissal for misconduct needs to be accompanied by the conduct being "wilful" such as to constitute a repudiation of the contract of employment by the employee. I rely on the following authorities in this regard:
In North v Television Corporation Ltd (1976) 11 ALR 599 where Franki J said at p616:
It is clear that a single act of disobedience may be sufficient to justify dismissal on the ground of misconduct but it was held in Laws v London Chronicle (Indicator Newspapers) Ltd [1959] 2 All ER 285, that to justify summary dismissal a single act must be such as to show that the employee was repudiating the contract of service or one of its essential conditions.
The 1959 English case referred to makes it plain that an act of disobedience or misconduct (justifying dismissal) requires also that the disobedience must be "wilful":
… I do, however, think (following the passages which I have already cited) that one act of disobedience or misconduct can justify dismissal only if it is of a nature which goes to show (in effect) that the servant is repudiating the contract, or one of its essential conditions; and for that reason, therefore, I think that one finds in the passages which I have read that the disobedience must at least have the quality that it is "wilful": it does (in other words) connote a deliberate flouting of the essential contractual conditions. (P288).
In Day v Lumley Life Limited (1999) 90 IR 70, Hungerford J describes the employment relationship as a serious contractual relationship involving rights and obligations on both sides:
The employment relationship, I have to say, is a serious relationship with important incidents for both parties to it. It is a consensual relationship based on contract and with respective rights and obligations. It should not, I think, operate, or to be so seen, in practice in a way, which permits one party, here, the employer, to act in a one-sided manner contrary to the legitimate expectations and understandings of the other party, here the employee, and particularly where such action damages or detrimentally affects the career interests of the employee. Employees have a corresponding duty to act with fidelity and good faith.
See also Blyth Chemicals Limited v Bushnell 49 CLR 66 and Hunt v Hornsby Shire Council , [2001] NSWIRComm 242.
85 The extent to which an employer must prove the misconduct prior to any summary dismissal was carefully considered by the Full Commission of the Industrial Commission of South Australia in the case of Bi-Lo Ltd v Hooper(53IR 224 at 229):
Where the dismissal is based upon the alleged misconduct of the employee, the employer will satisfy the evidentiary onus which is cast upon it, if it demonstrates that in so far as was within its power, before dismissing the employee, it conducted as full and extensive investigation into all the relevant matters surrounding the alleged misconduct as was reasonable in the circumstances; it gave the employee every reasonable opportunity and sufficient time to answer all allegations and respond thereto; and that having done those things the employer honestly and genuinely believed and had reasonable grounds for believing on the information available at the time that the employee was guilty of the misconduct alleged; and that, taking into account any mitigating circumstances either associated with the misconduct or the employee's work record, such misconduct justified dismissal. A failure to satisfactorily establish any of those matters will probably render the dismissal harsh, unjust or unreasonable.
86 In his opening statement Mr Young for the respondent stated that in light of the seriousness in which the legislation takes the risk of harm, the circumstances that arose on 26 March an immediately thereafter in the kindergarten's case, that was alone a sufficient breach of trust between the employer and the employee that it warranted dismissal. The object of the legislation was to provide care and protection as necessary for the safety, welfare and wellbeing of the children. There was a clear requirement as per her contract of employment for Ms Reid to communicate to management what had occurred.
87 Factually there is little difference between the parties. Two separate incidents occurred on 26 March 2008 involving C1 and two other children C2 and C3. As I understand the children were aged 3 to 4 years of age. The witness to one of the incidents reported as to what she had seen to Ms Reid on the afternoon of the same day when Ms Reid returned to the preschool.
88 The witness to the other incident, Ms Mundine who was a volunteer, had already left for the day by the time Ms Reid had arrived at the preschool and therefore did not get to speak to Ms Mundine until the next time she was at work which was a couple of days later.