How should employers deal with employee theft?

Toronto, Canada. Aug 17, 2023 - Employee theft, even on a small scale, can result in big costs, especially for small businesses. And employee theft extends beyond stealing cash or office items. There are many types of theft employers need to be aware of.

“While addressing employee theft after the fact is important, proactive steps are key,” says Ed Matei, Legal Counsel at Peninsula Canada.

What types of employee theft are there? •Time theft: This occurs when employees record more time than they worked. This can be done by adjusting their time records. And when employees spend company time on personal tasks or chit-chatting instead of completing work tasks, this is also time theft. • Property theft: If an employee steals company inventory, either for personal use or to sell it, this is property theft. Property commonly stolen includes notebooks, pens, and laptops. • Service theft: If an employee uses a company’s service for personal gain without permission, they’ve engaged in service theft. • Information theft: Employees who steal company data from computers and other electronic devices are committing information theft. This information is typically confidential or proprietary and can be used for financial gain or to ruin a company’s reputation.

How can employers properly address theft? Addressing employee theft in the workplace requires a careful and thoughtful approach to ensure fairness, transparency, and compliance with legal and company policies. Below are steps on how to effectively address employee theft. 1. Collect information: Gather all evidence, information, and documentation related to the suspected theft. This may include security footage. 2. Complete a formal and thorough investigation: Obtain all evidence that supports your allegation. 3. Meet with the employee: This meeting should be used to present the evidence collected and gather the employee’s responses. 4. Maintain confidentiality: Keep the investigation confidential to protect the privacy of all parties involved. 5. Company policy: Refer to the company policy and procedure for handling employee theft or misconduct. 6. Document the process: Keep detailed records of the entire process, such as evidence, meeting notes, and any other actions that were taken. Proper documentation can be used in case of a legal case. 7. Preventative measures: After addressing the immediate issue, evaluate what preventive measures can be taken to minimize the risk of future employee theft.

Can you fire an employee for stealing? Yes, employers (with some exceptions) generally do not need a reason to terminate an employee. However, when you terminate an employee without cause, they would need to be provided with severance.

When an employee engages in significant acts of wilful misconduct, disobedience, or wilful neglect of duty that is not trivial, an employer can also terminate an employee for cause. These cases might involve stealing, physically assaulting a colleague, or committing fraud.

In general, terminations for cause require a high burden of proof and there must be clear and compelling basis to justify the termination. However, keep in mind that termination for cause is the most serious form of punishment, and while it may be warranted in some cases, utilizing it when it is uncalled for may result in even more troubles down the road.

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