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An employer should have considered performance management or a "significantly clear warning" after an experienced employee breached its policies, instead of moving straight to termination, the Fair Work Commission has ruled in ordering her reinstatement.

The Virgin Australia cabin crew supervisor, who had been with the company for 14 years, was sacked in July last year for misconduct, and subsequently claimed unfair dismissal.

The FWC heard that an investigation found the employee, on her return to duties in January 2021 following a lengthy period of leave, breached the employer's code of conduct and workplace policies while on board a flight, in misappropriating food products, and sitting in a passenger seat (instead of the jump seat as required), watching a movie and falling asleep.

The investigation also found the employee failed to sign on for duty within the required time and notify her manager she was late on three occasions in early 2021...