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Reinstating an employee accused of misconduct would "in no way" undermine an employer's capacity to comply with its safety obligations, a Fair Work Commission full bench has ruled in rejecting an unfair dismissal appeal.

In May last year, South32 sacked the underground coal miner for: driving a vehicle through a shared zone at unsafe speeds; losing control of the vehicle; failing to adequately respond to a manager who asked who had been driving; and failing to report the incident at any time afterwards.

In unfair dismissal proceedings, the Commission heard the employee had been driving the vehicle around a corner when his wheels slid.

He regained control of the vehicle, parked it and then got out, and a mine deputy who witnessed the incident asked him who had been driving, to which he responded "Casper", referring to Casper the ghost...