A public sector dismissal will set a new precedent, with the Fair Work Commission (FWC) upholding the sacking of an Australian Taxation Office worker for a “clearly unethical” offence outside work hours.

A former ATO staff member has been convicted of “two counts of indecency on a person who was under 16 years of age outside of Australia” and was sentenced to three years and two months imprisonment in March 2013.

The staff-member had appealed against the sacking, arguing that the conviction was for “non-work related conduct”.

But the FWC has upheld the ATO’s decision to sack the worker for “a breach of the Australian Public Service Code of Conduct arising from these convictions”.

The APS Code of Conduct specifically states an employee “must at all times behave in a way that upholds the APS values and the integrity and good reputation of the APS'” and uphold the principle “that the APS has the highest ethical standards”.

Deputy FWC President Lawrence said the public offices have “special value” and should be treated differently from the private sector.

“This is particularly so with an Agency like the ATO, which must maintain the confidence of the general public in dealing with their taxation and financial affairs,” Deputy President Lawrence wrote.

“This creates an overriding obligation, not just in work time or workplaces, for an employee to behave with the highest ethical standards so the APS's reputation is maintained.

“I find that the Applicant was in breach of the Code of Conduct.

“Having found that the Applicant's convictions put him in breach of the Code, I find that the ATO's action in carrying out a formal investigation and ultimately dismissing the Applicant was a reasonable response to a difficult situation,” he said.

The Fair Work Commission's decision is accessible here.