Good afternoon all, I'm in a position to liaise with HR on a recent workplace complaint. One of my direct reports (who is a supervisor) made an inappropriate joke about another person (team leader). This occurs on a mine site and swearing is far from uncommon. There were four individuals involved in the conversation when the supervisor called the team leader "black c..t". The team leader is indigenous. The supervisor apologised shortly after that saying that it was a big mistake and that it was a joke. I would like to know whether this type of racial comment warrants a dismissal under employment law? The alleviating circumstances are that the supervisor has an unblemished work history and hasn't been reprimanded for similar issues in the past. The comment was not intended to offend the individual and wasn't threatening. These are the circumstances. Person A says to person B: you can't participate in the indigenous development program because you're not indigenous. Person A wasn't aware that B is indigenous. Person C joins the conversation addressing person B: So you're just a black c..t. (B has a dark tan). Person C apologizes to B soon after that. Person B accepted the apology however lodged a complaint a few days later. The company has very clear policies on anti-discrimination, bullying and harassment. Your thoughts would be much appreciated.