Irrelevant criminal convictions
Pegasus,
An issue to consider in this regard is that under Commonwealth equal opportunity law it is unlawful to discriminate against a person, including in the area of employment, on the grounds of an irrelevant criminal conviction.
In the circumstances you have described, there are two key considerations. 1 - has the person been convicted of an offence which is relevant to their employment, taking into account the nature of their job and the period of time that has lapsed since their conviction; and 2 - you should only consider convictions, not whether a person has been to court but not convicted (the information you currently appear to require).
Thus, if a person has been convicted of an offence which you determine is relevant to their employment, you may take that into consideration in your decision making processes as to an employment candidates suitability for a position, or for the ongoing employment of an existing employee. However, if you consider a persons conviction is not relevant, you should not use that information in your decision making processes.
Furthermore, on this point there is a "reverse onus of proof", that is, if a discrimination complaint were made it is for you as the employer to demonstrate that the recorded conviction was relevant to the person's employment. If you cannot do that, the complainant would likely be successful in their complaint.
Best of luck
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