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The first thing is to talk to the employee. Let them know that you are aware of their dishonesty and that it will not be tolerated. Depending on their work history they may be terminated. You need to determine why they were not honest with you. Sometimes there are outlying circumstances that with help can be rectified. I believe in giving someone a second chance so long as the infraction was un-intentional or minor in nature. But by looking the other way you may set a trend of dishonesty. If it was blatent or intentional, then I would weigh all the factors and make a determination as to whether to continue their employment or not.

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Q: How would you deal with an employee who was not open and honest in communication?
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