Employment and Migration Blog

Corporate Credit Card – Use with caution!

Posted by Anna Ford on 28 May 2015

If you distribute corporate cards to employees, it’s vital that you have a policy in place that clearly sets out the rules on its appropriate use.

The Fair Work Commission recently upheld the termination of a Manager who hid his unauthorised use of the company credit card to purchase two cases of beer.

When the Manager started with the company, he was advised to make himself familiar with all of their policies, including the Corporate Credit Card policy.

Later that year, the Manager requested approval to fund a department Christmas party. The request was declined and he was advised that a company-wide celebration would take place instead.

Subsequently, an unofficial Christmas gathering was organised for the Manager’s team - the Manager contributed two cases of beer totalling $114.98 using his corporate credit card, recording the purchase as a ‘supplier gift.’

The Manager was questioned about the purchase and despite offering to repay the amount, he was stood down and subsequently dismissed, receiving one week pay in lieu of notice.

For more information see Farrelly v Seasonair Pty Ltd [2015] FWC 2334 (8 April 2015).

In the case above, having a credit card policy in place was a significant factor in the Fair Work Commission reaching its decision that the termination was not unfair.

If you need assistance with preparation of such a policy or one reviewed, please contact the Coleman Grieg Employment Law team: