If an employee is found to have committed misconduct (not gross misconduct), can an impose a sanction other than a warning or demotion?

In general terms, the types of disciplinary sanction and the provisions governing how and in what circumstances they will be applied are decided by the employer and should be set out in the disciplinary policy / procedure. A graduated system of warnings is usually provided for in relation to first offences for which summary dismissal is not appropriate.

Generally, when it comes to deciding upon, and imposing, a disciplinary sanction employer is expected to:

• adopt procedures that are designed primarily to help and encourage employees to improve rather than as a way of imposing a punishment;
• be impartial;
• impose a sanction that is reasonable and proportionate in the circumstances; and
•  act consistently.

When it comes to imposing a sanction that is reasonable and proportionate, consideration should be given to the following factors:

• the employer’s disciplinary procedure and any guidelines provided about the relevant types of misconduct and levels of disciplinary action;
• any extenuating factors that might have had a bearing on events;
• the employee’s length of service and previous disciplinary record; and
• any earlier examples of how similar matters of misconduct have been dealt with in the business (in order to ensure that the employer's approach to disciplinary sanctions is consistent over time).