Good-Person
Captain Junkie
There is no better way to handle a dishonest employee than to relief such a person from his/her duty. I believe every organization takes honesty and integrity very seriously especially for the purpose of the company's image, therefore if an employee fails to hold on to this then it is important that the company le such a person go.
I think it entirely depends on the offence committed. I used to work for a company that used to fire employees for not informing and taking leave without informing the admins. They never used to grant leave and they always used to pressurize employees and I believe that this is bad.