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Misconduct in corporate should not be tolerated.
After enquiry termination should be made.
Identity theft is a serious offense., particularly if purposefully dragged on to the thief's advantage. I do not think the question you should be asking is whether or not to terminate the employee, that's a red herring. The real question is how to re-establish and assurance to the victim, and in tandem, how to deal with the fractures in the security system which allowed this to happen in the first place and how many were implicitly involved in perpetrating the falsehood.
What's the reason he/she stole your ID? I can't possibly thing of any legit reason but maybe there's any......I suppose I would terminate him/her.
Ofcourse misconduct or theft is a serious offense. Do not tolerate such employee in our organisation, because he will do it further in any form. He would be a dangerous for all those are working in a firm. Terminate him on the spot.
This sounds like a matter for the police. The question is not whether you give him another chance, the question is whether he goes to jail.
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