I just found out that one of my best and most popular employees lied to on his resume and in his interview. He is never late, his drawer is never short and he is looked up to by all the other employees. But what bothers me is that he told everyone he lied.
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You do not say in your question what your employee lied about. If he is a convicted murderer, sexual predator, bank robber, etc., he should obviously not be retained. However, you will find that most applicants lie on their resumes and many lie in their interviews to get hired. Further, hiring should not be done from resumes, rather he should be filling out your application. This makes misrepresentations much easier to spot. In your situation, unless his lie is so bad that you cannot keep him on the payroll, I suggest you have a meeting with him in private and explain that you are retaining him despite the fact that you know he misrepresented himself during the hiring process. But you are retaining him only because of his performance.
