Dealing with Employee Theft or Dishonesty

Employee theft, or also commonly known as employee dishonesty, manifests in a few forms such as:

Embezzlement of tangible assets, such as cash (whether by theft or fraud) or inventory.

Unauthorised use of intangible assets such as personal or business data, client-related information, business sensitive information or trade secrets.

Can have dire financial and reputational consequences for a business.

Therefore, an employer who finds himself in possession of any direct evidence relating to an employee theft may want to make a police report as soon as possible, as the employee might have already committed a criminal offence. 

However, often an employee would only be suspected of theft or theft related behaviour, where employers will have to carry out investigations and take the necessary steps to ensure that a suspicion has been fairly dealt with.

An employee subject to such investigations can be suspended pending the outcome of the disciplinary process.

Investigation

An investigatory process would be inevitable to gather the necessary information on the suspicion, where the employee in question should be treated with respect and dignity.  The investigation should be conducted in confidence and documented as far as possible.  Once the employer has completed the investigation, the employee should be given the opportunity to explain herself/himself at a meeting.

Disciplinary Hearing

If there is sufficient evidence against the employee, an employer can request the employee to attend a disciplinary hearing involving the alleged theft.  The employer can rely on its staff handbook or ACAS guidance for a fair procedure to be followed during the disciplinary process.

The employee must be given the opportunity to raise questions and provide explanations during the disciplinary hearing.  If the outcome of the hearing finds the employee responsible for the theft, the employee can appeal.

Final Decision

Should the employee appealed against the decision but found to be guilty of theft, the employer may find the employee to have conducted gross misconduct, leading to immediate dismissal.  Apart from being dismissed, the employee might even find herself/himself subject to high court proceedings, for example in situations where an employee has misappropriated company trade secrets might be prohibited from using the information which could seriously harm the company’s business interests.

Employee theft is usually costly and damaging for businesses.   Therefore, implementing internal controls, promoting a workplace culture of integrity and carrying out constant checks are necessary steps to ensure that any allegations of employee theft is investigated promptly and handled fairly.

If you suspect that your business has fallen foul to employee theft, or if you are in a senior management level but believe that you have been unfairly accused of stealing company information, please contact our team for professional advice and assistance.  We are always ready to provide our support at times of need.

---

The information provided on this website is for general informational purposes only and should not be construed as legal advice. For legal advice, feel free to contact us for a full consultation.