Resume Lies: Legal Risks, Background Checks, And Employer Responses

Finding the right hire can be a huge win for a small business. The right person can lift revenue, improve customer experience, and take pressure off you as the owner.

But when you discover (or suspect) someone has lied on their resume, it can feel like the rug has been pulled out from under you. You may be asking:

• Is lying on a resume illegal in Australia?
• Can we terminate the employee immediately?
• What checks can we run without breaching privacy or discrimination laws?
• How do we respond without creating an unfair dismissal claim?

The good news is you can take practical steps to investigate and respond. The key is doing it in a way that is legally defensible, procedurally fair, and consistent with your contracts and policies.

This article provides general information only and does not constitute legal advice. If you need advice for your specific circumstances, consider getting tailored legal advice.

Why Lying On a Resume Is A Serious Business Risk (Not Just A “Bad Hire”)

Some resume inaccuracies are minor (for example, a slightly generous description of responsibilities). Others are serious misrepresentations that can create real legal and commercial risk for your business.

Common examples of resume dishonesty we see employers deal with include:

• Qualifications (claiming a degree, licence, or trade qualification they don’t have)
• Work history (inventing an employer, changing dates, or inflating seniority)
• Professional registrations (claiming they are registered, accredited or “current” when they are not)
• Right to work (misrepresenting visa or work entitlement)
• Reasons for leaving (hiding a termination or serious performance history)

How Resume Lies Can Harm Your Business

For a small business, one wrong hire can have an outsized impact. Depending on the role, resume dishonesty can trigger:

• Safety and compliance issues (e.g. unqualified staff operating equipment or dealing with vulnerable clients)
• Customer and reputation damage (particularly for professional services and customer-facing roles)
• Financial loss (training costs, lost time, errors, rework, client complaints)
• Legal exposure if a client relies on the employee’s claimed credentials
• Workplace culture issues, especially if other staff perceive you tolerate dishonesty

Even if you want to move quickly, it’s important not to jump straight to termination without thinking about process. In Australia, how you respond can matter just as much as why you respond.

Is Lying On a Resume Illegal In Australia?

There isn’t one simple rule that says “lying on a resume is always a crime” or “lying on a resume is always lawful.” It depends on what was lied about, how it was used, and what happened next.

Resume Lies Can Be “Misconduct” In An Employment Context

From an employer’s perspective, resume dishonesty can support a view that the employee engaged in misconduct. In some cases, it may be serious enough to justify termination (including, in limited cases, summary dismissal for serious misconduct).

But “misconduct” isn’t a magic word. If you terminate, you still need to consider:

• the employee’s length of service and access to unfair dismissal protections
• whether the lie was material to the role (i.e. would you have hired them if you knew the truth?)
• whether there is evidence, not just suspicion
• whether you followed a fair process

Some Resume Lies Can Trigger Other Legal Issues (Particularly If False Documents Or Financial Benefits Are Involved)

If a person uses false documents or makes dishonest representations to obtain a benefit (for example, a role requiring a licence, or higher pay based on credentials), this can create legal risk beyond the employment relationship. Depending on the circumstances, that may include potential criminal law issues (such as offences relating to deception or false documents) - however, this will be fact-specific and is not automatic.

That said, most employers don’t want to start with criminal options. Practically, the first step is usually managing the employment relationship properly (and safely) while you confirm the facts.

Be Careful With Defamation And “Naming And Shaming”

When you discover resume dishonesty, it’s tempting to warn others. But you should be careful about:

• accusing someone publicly (including in industry groups, social media, or casual conversations)
• sending emails to third parties that go beyond what you can prove

Even where you genuinely believe someone lied, allegations of dishonesty can be highly damaging. Keeping communications factual, limited, and on a “need-to-know” basis is usually the safest approach.

Background Checks: What You Can Check (And How To Do It Safely)

One of the best ways to reduce the risk of lying on a resume is to build checks into your hiring process. The goal is to verify critical information without overreaching or creating discrimination and privacy issues.

What Employers Commonly Check

Depending on the role, it may be reasonable to check:

• Reference checks (confirm duties, performance, and employment dates)
• Qualifications (ask for copies and, where appropriate, verify with the issuer)
• Right to work (evidence of work entitlement)
• Professional registrations (where the role requires it)
• Police checks / working with children checks (role-dependent and handled carefully)

If you’re onboarding someone in a role that interacts with customers, handles money, has access to sensitive data, or involves safety risks, it’s worth thinking about checks as a standard risk-management step.

Be Mindful Of Privacy And Handling Information Properly

Background checks usually involve collecting and storing personal information. Even if you’re a small business, you should treat this carefully and limit access internally.

It can help to set expectations upfront through clear onboarding documents and internal rules, including a workplace policy that explains how your business handles recruitment checks, confidentiality, and appropriate workplace conduct.

Avoid Discrimination Traps During Checks

It’s one thing to verify whether someone has a qualification they claimed. It’s another to ask questions that stray into protected attributes (for example, health conditions, family plans, religion, age, or other personal characteristics).

As a general rule, keep checks:

• role-relevant (directly linked to inherent requirements of the job)
• consistent (same checks for the same role level)
• documented (so you can show your process if challenged)

How To Respond When You Suspect Lying On A Resume

If you have concerns about lying on a resume, the most important thing is to avoid acting on instinct alone. A rushed decision can create unnecessary legal exposure, particularly if the employee is eligible to bring an unfair dismissal claim.

Here’s a practical, employer-focused way to respond.

1) Pause And Identify What Exactly You Think Is Untrue

Start by clarifying the issue. Is it:

• a qualification that appears not to exist?
• employment dates that don’t line up?
• a claimed licence or registration that isn’t current?
• something you heard informally from another employer?

Be specific. Vague concerns are hard to act on fairly.

2) Assess Whether The Issue Is “Material” To The Role

A useful question is: would you have hired them on the same terms if you knew the truth?

For example:

• If the role legally requires a licence or qualification, dishonesty is more likely to be serious.
• If the lie goes to trust (e.g. inventing a job entirely), that can be significant even if the person is performing.
• If it’s a minor exaggeration that doesn’t change role suitability, the response may be different.

This “materiality” assessment helps you decide whether you’re dealing with a coaching/performance issue, a misconduct issue, or a scenario where continued employment is not viable.

3) Gather Evidence (Without Turning It Into A Witch Hunt)

Before you put allegations to the employee, gather what you can reasonably confirm, such as:

• the resume and application form
• the signed offer letter and any declarations made
• copies of documents the employee provided
• emails or messages where the employee confirmed certain claims
• reference check notes (if you have them)

If you need to contact third parties (like an education provider or former employer), make sure you’re doing so appropriately and only seeking information relevant to the claim.

4) Put The Concern To The Employee And Give Them A Chance To Respond

Procedural fairness matters. Even where you believe the employee lied, it’s generally safer to:

• explain the concern clearly
• give them a chance to respond (and provide documents or clarification)
• consider their response genuinely before making a decision

In many workplaces, this is done through a formal process (for example, a meeting invitation, notes, and a follow-up letter). For more serious matters, a structured show cause letter can help you set out the allegations and provide a clear opportunity to respond.

5) Consider Immediate Risk Management Steps

Depending on the alleged dishonesty and the role, you may need to manage risk while you investigate. For example:

• temporarily removing certain duties (e.g. tasks requiring a licence)
• increased supervision
• pausing access to certain systems or client accounts

These steps should be proportionate and documented. If you’re considering suspension, get advice first because your ability to do this (and whether it is paid or unpaid) can depend on the employment contract, any applicable award or enterprise agreement, and the specific circumstances. “Stand down” has a specific meaning under the Fair Work Act and generally only applies in limited situations.

6) Decide On An Outcome (And Document Your Reasoning)

Outcomes may include:

• No action (if the concern is not substantiated)
• Training/coaching (if the issue is capability-related rather than dishonest)
• Formal warning (if there was misleading conduct but termination is not proportionate)
• Termination (where dishonesty is substantiated and serious enough)

If you issue a warning, it helps to align your approach with a consistent warning process. Many employers benefit from understanding what “good process” looks like in practice, including formal warnings and the records you should keep.

If you terminate, the details matter: the reason, the process, and the wording in the termination letter can all affect risk.

Can You Terminate An Employee For Lying On A Resume?

Potentially, yes. But you should treat termination as a decision that needs a clean, defensible process.

Termination During Probation

If the employee is still in their probation period, employers often assume they can end employment “for any reason.” In reality, you still need to be careful.

Probation can make termination more straightforward, but you should still follow the contract, act fairly, and avoid unlawful reasons for termination. It’s worth ensuring your probation clause is properly drafted in your Employment Contract, so expectations and notice obligations are clear from day one.

If you’re unsure about your options, this guide on termination during probation is a helpful starting point for understanding the general framework.

Termination Outside Probation (And Unfair Dismissal Risk)

If the employee has access to unfair dismissal protections (which depends on factors like length of service and your business size), you should assume they may challenge a termination decision if the process isn’t fair.

Where resume dishonesty is the reason for termination, common risk areas include:

• Insufficient evidence (you assumed rather than proved)
• No opportunity to respond (lack of procedural fairness)
• Inconsistent treatment (others have done similar things without consequences)
• Poor documentation (no record of what was said, when, and by whom)

Even if you ultimately have a valid reason, getting the steps wrong can increase the chance of a dispute.

Should You Report The Employee To A Regulator Or Professional Body?

In some industries, there may be reporting obligations or expectations (for example, where someone falsely claimed registration, or where there is a safety issue). However, obligations vary significantly between industries and regulators, and they won’t apply in every case.

Because this depends heavily on your industry, the alleged conduct, and the role, it’s worth getting tailored advice before reporting. It’s also important to keep any external communications factual and supported by evidence.

How To Reduce The Chances Of Lying On A Resume Happening In The First Place

While you can’t remove all hiring risk, you can reduce it significantly with a few upfront steps. For small businesses, this is often about building a repeatable hiring process you can use every time - even when you’re busy.

Build Verification Into Your Recruitment Process

Consider adding a simple checklist to each hire, such as:

• minimum of 2 reference checks (one ideally being a direct manager)
• verification of critical qualifications/licences
• clear role description and “must have” requirements
• written confirmation that the candidate’s information is true and complete

Doing this consistently makes it easier to spot discrepancies early and reduces the risk of claims that you treated someone differently.

Use Clear Employment Documents That Set Expectations Early

Your contract and onboarding documents do more than set pay and hours - they can also support your ability to act when trust is broken.

For example, your employment contract can include provisions about:

• probation
• duties and performance expectations
• confidentiality
• termination and notice
• policies forming part of the employment framework

Having a properly drafted Employment Contract and clear policies reduces ambiguity and helps you respond consistently if issues arise.

Train Managers On What To Do When Issues Are Raised

In small businesses, concerns about resume dishonesty are often discovered by a supervisor, client, or another staff member.

Make sure managers know to:

• escalate concerns promptly (but confidentially)
• avoid making accusations on the spot
• keep notes of what was observed and when
• let the business follow a fair process

This can prevent “off the cuff” conversations from becoming evidence problems later.

Get Legal Input Early If You’re Unsure

Resume dishonesty can intersect with multiple legal areas - employment law, privacy, workplace investigations, and sometimes regulatory obligations.

If the situation is serious, getting advice early can help you plan a path that protects your business and reduces the chance of escalation. In many cases, a quick conversation with an employment lawyer can clarify what steps to take next.

Key Takeaways

• Resume dishonesty can range from minor exaggeration to serious dishonesty that creates safety, compliance, and reputational risks for your business.
• Whether resume dishonesty justifies termination depends on what was lied about, whether it was material to the role, and whether you have evidence.
• Background checks should be role-relevant, consistent, and handled carefully to avoid privacy and discrimination issues.
• If you suspect resume lies, focus on a fair process: clarify the allegation, gather evidence, give the employee a chance to respond, and document your reasoning.
• Strong hiring processes, clear workplace policies, and well-drafted employment contracts reduce the risk of disputes and help you respond confidently when issues arise.

If you’d like help responding to resume dishonesty or setting up a stronger recruitment and employment framework, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.