Can You Fire Someone for Looking for Another Job? A Lot of Employers Think the Answer Is Yes.

It isn’t. But the way you handle it still matters enormously.

We get asked this one regularly. A business owner finds out one of their team is quietly shopping their CV around. Maybe a recruiter let it slip. Maybe someone saw their LinkedIn profile light up with activity. Whatever the source, the reaction is usually the same: a mix of offence, anxiety, and the urge to act fast.

So let’s deal with the question head on. Is looking for another job a valid reason for dismissal in Australia? Technically, it can be. Is it enough on its own to fire someone cleanly? Almost never. And a 2025 Fair Work Commission case makes exactly that point.

What happened

An employee was let go after management discovered he had been applying for other jobs. The employer took the view that this was a breach of loyalty and trust, and terminated his employment.

The Commission’s focus was not on whether the employer felt offended by the situation, but on how the dismissal was carried out. The evidence showed the allegations were never put to the employee. He was given no opportunity to respond, no warning was issued, and the decision to dismiss was abrupt.

The Commission found that even if the employer had grounds to raise concerns, the complete absence of procedural fairness made the dismissal unfair. The employer lost.

Why this keeps happening

The instinct to act quickly when trust feels broken is understandable. Nobody wants to keep paying someone who is clearly on their way out. But that instinct, when acted on without a proper process, is exactly what turns a manageable situation into a Fair Work claim.

The Commission’s consistent position is that the law is not a moral test of whether an employer felt justified. It focuses on whether the dismissal was harsh, unjust or unreasonable when assessed objectively, with close attention to evidence, procedure, proportionality and fairness.

Feeling betrayed does not bypass that test. Neither does being right.

What the law actually says

Job hunting is not, by itself, misconduct. Employees are entitled to explore their options. What can become an issue is if the activity crosses into something more concrete, such as soliciting your clients, taking confidential information, or actively working against the business while still employed.

Even then, the process matters. Before you dismiss someone, you need to:

• Put the concern to them clearly and specifically. Tell them what you know, what you believe it means, and give them a genuine chance to respond. That’s not a formality. That’s the law.
• Document it. If there are legitimate concerns about conduct or loyalty, they need to be on paper before the termination decision is made.
• Consider whether a warning is appropriate. In many cases, especially where there’s no clear policy breach, a warning before dismissal is expected.

The part business owners miss

Most employers who end up at Fair Work were not trying to do the wrong thing. They were frustrated, they acted quickly, and they assumed that having a reason was enough.

It isn’t. You need a reason and a process. Skip one of those, and the reason stops mattering.

We worked with a client recently who was in exactly this situation. They had solid grounds to move someone on, but they’d gone straight from “we know about the job applications” to “you’re done” in the same conversation. No warning, no meeting, no documentation. We helped them reach a resolution before it escalated, but it cost time, money, and significant stress that a single conversation upfront would have avoided.

Frequently Asked Questions

Can I dismiss an employee just for applying for other jobs?
Technically it can be a reason, but almost never on its own. Job hunting is not misconduct, and employees are entitled to explore their options while still employed. What can tip it into a genuine issue is if the activity crosses into something more concrete, like soliciting your clients, taking confidential information, or actively working against the business. Even then, you still need a proper process before you act.

What if I feel genuinely betrayed that someone is looking to leave?
That feeling does not change what the law requires. The Commission’s focus is not on whether you felt justified, it is on whether the dismissal was fair when assessed objectively against evidence, procedure and proportionality. Feeling betrayed, or even being right about the concern, does not bypass the requirement for a proper process.

What process do I need to follow if I have concerns about an employee’s loyalty or conduct?
Put the concern to them clearly and specifically, telling them what you know and what you believe it means. Give them a genuine chance to respond. Document everything before the termination decision is made, not after. Consider whether a warning is appropriate first, particularly where there is no clear policy breach. Skipping any of these steps is what turns a manageable situation into an unfair dismissal claim.

Is there a better way to handle this than dismissal?
Often, yes. A frank, direct conversation about whether the role is still working for both sides can lead to a clean, agreed exit with no claim and no drama. Slow down before you act. Ask yourself whether you have actually put the concern to the employee and given them a chance to respond. That conversation, handled properly, is usually cheaper and faster than the alternative.

What to do if you find yourself here

If you’ve just found out a team member is looking elsewhere, slow down before you act. Ask yourself: have I put this to them directly? Have I given them a chance to explain? Is there something worth addressing in the employment relationship that I haven’t tackled?

Sometimes the right answer is a frank conversation about whether the role is still working for both sides. That conversation, handled well, can lead to a clean and agreed exit. No claim. No drama.

If you’re unsure how to approach it, that’s what we’re here for.

Talk to HR Gurus before you make the call, not after.