Employees stealing from their employers can have significant impact on businesses and be tricky to manage. The following article raises ways in which businesses can address employee theft to prevent loss.  

Investigations are essential

Employees steal for many different reasons. They may be struggling with the cost of living and see no alternative, they may enjoy the thrill of getting away with it, or they may not even realize that they are doing the wrong thing. 

If an employer suspects an employee is stealing, swift action is crucial ito minimize the potential damage. It’s  essential that the employee receives due process. If an employer takes disciplinary action without first gathering evidence or allowing the employee to address the allegations, it could lead to a claim of unfair dismissal within the Fair Work Commission. 

If an employee does not realise their conduct does, or could, constitute theft, it is the employer’s responsibility to educate the employee rather than take disciplinary action. 

An employer is responsible for conducting an impartial investigation to substantiate any suspicions of theft. This involves collecting evidence such as documents, witness statements, and transaction or inventory records from the workplace. The assessment of this evidence should determine, on a balance of probabilities, whether the employee has engaged in the theft. The employee in question must also be given a fair opportunity to respond to the accusations. 

Serious Misconduct and Recovery 

The Fari Work Commission considers theft to be serious misconduct that can lead to disciplinary action, up to and including summary dismissal. However, any disciplinary action should be proportionate to the severity of the offence. For example, taking a ream of copy paper from the office supply room may not justify termination of employment but it could merit a warning and a discussion about acceptable behaviour in the workplace. However, stealing thousands of dollars from the business’s cash register would likely be grounds for summary  dismissal. 

If an employee steals money or goods, it might seem logical to deduct the value from their salary or benefits. However, this action is unlawful unless expressly authorised by the employee. 

Theft is also a criminal offence, and employers may consider reporting it to the police. Not all instances of workplace theft are reported, so it’s important to weigh the impact on the business and the employee before proceeding. If it is decided the police should be involved, the business should ensure the allegations are substantiated by the appropriate evidence. It is advisable to conduct an internal investigation beforehand unless the situation is so severe that immediate police intervention is warranted. If the police investigation confirms the theft, employers may pursue a civil remedy in court to recover losses incurred by the business. 

What can employers do? 

While predicting such actions may be challenging, there are proactive steps you can take to reduce the likelihood of employee theft in your practice: 

• Foster a zero-tolerance culture towards criminal behaviour, especially theft. This can be done by implementing clear workplace policies and a code of conduct that explicitly states theft as serious misconduct, punishable by disciplinary action up to and including immediate termination. 

• Provide comprehensive training for employees on the gravity of workplace theft. This ensures they understand what constitutes acceptable use of company resources like supplies and information. For example, if employees are allowed to take certain workplace items, it may be difficult to determine whether an employee has committed theft if they took something home that was not allowed. 

• Establish an anonymous reporting system within your workplace to allow employees to report any cases of serious misconduct, including theft, without fear of retaliation.  

• Restrict access to sensitive areas like computers, information, and finances to authorised personnel only. This measure can help mitigate the risk of misuse of practice resources. 

• Prior to hiring, conduct thorough background checks to uncover any past employment history that may indicate a predisposition for risky behaviour within the workplace. 

Implementing these measures can significantly enhance the security and integrity of a workplace against potential theft incidents.