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A Fair Work Commission full bench has overturned a finding that an "exemplary" employee's 12-month first and final warning for a serious safety incident was an appropriate disciplinary outcome.

In August last year, the Opal Fibre Packing forklift operator was stacking pallets in a 'heavy duty area' when he struck a fire sprinkler line, resulting in water spreading throughout the workplace, two fire trucks attending the site, and machinery needing electrical repairs.

The employer subsequently gave him a first and final warning, as per the terms of its enterprise agreement, stating this would cease to have effect for the purposes of discipline and would be removed from his personnel file 12 months from the date of issue...