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- Addressing Employee Theft: Here’s What Employers Should Know
Addressing Employee Theft: Here’s What Employers Should Know
- Employee Conduct
Olivia Cicchini, Employment Relations Expert
(Last updated )
Olivia Cicchini, Employment Relations Expert
(Last updated )
Managing your team effectively means having policies in place to tackle the more challenging aspects of employee management, such as workplace conflict, violence, theft, and fraud.
Employee theft is a serious staff management issue that employers must take proactive steps to prevent. This blog discusses employee theft, termination related to employee theft and how to address theft in the workplace.
What is considered employee theft?
Employee theft is any unauthorized use of your company’s money, property, time, or information.
Common examples are:
Money –
pocketing cash, skimming tills, altering receipts.
Property –
taking office supplies, tools, stock, or equipment.
Time –
falsifying hours, extended breaks, logging in but not working.
Information –
copying client lists, trade secrets, or other confidential data.
Misusing any company asset without permission counts as theft, even if it never leaves the workplace.
While businesses of all sizes face employee theft, this issue can be especially challenging for your small to medium-sized business. Smaller infrastructures often translate to fewer anti-theft controls and less resources for financial cushioning.
Theft also has a negative effect on company morale through broken trust, and often results in the employer increasing security measures in the workplace (such as, identification badges, surveillance cameras and restricting employee access to company materials, such as office equipment and supplies).
Can I fire an employee for stealing?
Yes—if you have clear proof of theft. Termination with cause is the most serious form of termination.
Gather solid evidence such as documents, CCTV, or witness statements.
Confirm the specifics under your disciplinary policy.
Act promptly to minimize further risks.
Employers can terminate an employment for just cause when an employee commits a serious act of wilful misconduct/breach of contract (such as, stealing, assaulting a co-worker, or committing fraud).
While a serious act of misconduct like workplace theft may seem to justify termination, it is always best to proceed with caution when determining the appropriate level of disciplinary action. Where courts have found that cause for dismissal on the basis of dishonest conduct, such as theft, exists, the analysis rests on looking into the nature and circumstances of the misconduct to determine if the dishonesty is severely fraudulent in nature to justify termination without notice.
It is a good practice to have an escalation process when it comes tofor disciplining staff for theft.
How should I address theft in the workplace?
You should follow a proper procedure when faced with employee theft. We recommend that you:
Complete a formal investigation
Obtain all evidence that supports your allegation. A proper investigation includes:
Collecting written evidence (i.e., bank statements, stock reports, etc.)
Collecting any security footage that supports your allegation
Interviewing co-workers who may have been witnesses to get witness statements
Meet with the employee
This meeting is to present your evidence and gather the employee’s response. Proper scheduling of this meeting includes:
A written meeting invitation to the employee
Providing at least 24-hour notice of the meeting
Allowing the employee to bring a support person
Make a decision
After hearing out the employee, you can make an informed decision regarding the employee’s future in your company. If you can objectively prove this employee committed theft, you may have grounds to terminate their employment.
How to prevent employee theft?
While it is not possible to foresee fraud or embezzlement in the workplace, you must put in place checks and controls to prevent theft. Besides setting workflow procedures that ensure accountability and surveillance cameras in sensitive areas, you must have clear and comprehensive policies on discipline,
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confidentiality
, theft, IT and email, privacy & data protection, etc.
Need help with staff management?
Properly handling employee theft situations protects your business from potential legal complications. Take a measured approach and seek professional advice when appropriate. We’ll help
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implement policies
on workplace theft or update your existing ones to prevent theft in your organization.
Whether it is company policies that you need assistance with or any other
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HR
,
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health & safety
, or
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employee management advice
, we’ve got you covered. To learn more about how our services can benefit your business, call an expert today at 1 (833) 247-3652
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