Employee Theft in the Workplace – Best Practise & Legal Overview

Theft in the workplace can involve a number of scenarios. Stealing from work does not always involve stock or money. More intangible acts such as data and time being stolen can be just as financially harmful.

Any situation where staff misuse company resources can be considered theft from the workplace. An investigation when a staff member is suspected of stealing must be conducted using proper and fair procedures.

This guide will look at fair investigation and disciplinary procedures, as well as examining the legality of surveillance tools such as CCTV and covert recordings. If employers fail to follow proper procedures, they can leave themselves open to claims of unfair dismissal.

It’s vital to conduct investigations into employee theft thoroughly, and with understanding of their rights under UK employment law.


What is Employee Theft?

Employee theft involves any stealing or misuse of company assets. It can involve physical items such as money or stock or intangible items such as time or data.

For example, any situation where staff misuse stock or products can be considered theft in the workplace. In retail, this might be using the tester makeup and using the perfumes daily. Employees might pass on the knowledge that is pivotal to a business’ profitablility such as price lists, or customer data.

Some types of theft from a workplace are easier to prove than others. Employers need to tread very carefully when investigating and starting disciplinary procedures.


I Suspect an Employee is Stealing – What Should I Do?

Suspecting an employee of stealing is a very difficult position to find yourself in as the manager or business owner.

Correct procedures must be followed from the very start. Failure to do so could result in a grievance being raised against you. Potentially, you could find yourself embroiled in an employment tribunal case which is far from ideal.

Employers should always check disciplinary policies around this type of behaviour. If such a policy doesn’t exist then they should refer to the ACAS Code of Practice. Following the advice set out will drastically reduce the risk of employees making unfair dismissal claims against you.

You need to be fairly certain that you have the identified right employee before beginning any procedures. Catching them red handed stealing goods or data can make things simpler, although they should still be given fair treatment. When you have got your suspect, you can begin investigations internally.


Investigating Allegations of Theft in the Workplace

The process of investigating allegations of theft in the workplace needs to be conducted fairly and by following proper procedures. Once an allegation has been made, the employer should investigate the matter as thoroughly as possible before deciding if disciplinary action is appropriate.

An investigation should always be the first step when stealing is suspected on the premises. This allows any potential evidence to be collated so that a disciplinary matter can be raised. If the investigation shows concerns then disciplinary action will be raised.

An investigation of theft in the workplace should:

  • Gather all the evidence available about the allegation of theft.
  • Decide if there is enough evidence to start disciplinary action.
  • Be conducted even if the employee admits wrongdoing.
  • Consider any mitigation that might be taken into account.

Investigations into theft in the workplace do not require the same burden of proof as a criminal investigation. To take further action, an employer should be able to demonstrate they have reasonable grounds to believe the employee was responsible.

For any disciplinary action, or dismissal on grounds of gross misconduct to be seen as fair, employers should also be able to demonstrate the action was a reasonable decision in the circumstances.


Can You Use CCTV & Covert Recordings?

Often, CCTV footage can be the only definitive way to prove suspected misconduct. If an employee is caught stealing on camera, the evidence can’t be denied.

It may be that there is already CCTV in place in the workplace. When this is the case, employees should be aware of this and have signed an agreement or contract.

When a staff member is suspected of stealing, CCTV is permitted as part of the ongoing investigation. However, this should be tackled very carefully and should only be used in exceptional circumstances. It cause distrust and bad feelings in the work environment.

However, employers must never film their employees without their knowledge and consent. Even where workplace theft is suspected, the filming cannot be covert. Workers should be given an explanation of why it is happening and employers should reference the Data Protection Act CCTV rules.

The rules regarding covert recordings are the same – employees must be aware of being monitored in this way.


Disciplinary Action for Theft in the Workplace

Once investigations have been completed, employers will know if they need to proceed with disciplinary action on grounds of workplace theft.

It might be clear at this point what the employer will do about it but the employee still has the right to a fair hearing.

The accused employee should be invited to attend a disciplinary meeting. Proper notice of the meeting must be given. This allows the employee to put together their version of events and ask someone to come along for support. They should also be notified of any evidence against them. Nothing should come as a shock on the day of the meeting.

The meeting will conclude after all sides have said all they need to say. Employers should then go and consider how this matter will be resolved. This should be done as efficiently and timely as possible.

There will be a few possible outcomes after the disciplinary meeting:-

  • Employers may decide that no further action is required. This could be based on mitigating factors, their clean record with the company, years of service or insufficient evidence.
  • A verbal or written warning may suffice.
  • On the more serious end of things, the theft may turn out to be a sackable offence. This should be done by following the company dismissal policy.

Is Stealing From Work a Sackable Offence?

Employee theft should be taken extremely seriously. Left to fester, these sorts of accusations can lead to hostility among the staff. There will usually be some sort of breakdown in trust, depending on the theft. This in itself is enough to deem stealing from work a sackable offence.

Theft in the workplace is usually considered an act of gross misconduct which can result in dismissal. In some cases, employers may deem it necessary to involve the police. This can lead to charges being brought against individuals. In some cases, theft can carry custodial sentences.

Sacking may be instant if the employee is no longer viewed as fit for work. They should be paid until the notice period is over, even if they are no longer physically at work.


Employee Rights When Accused of Theft

Even when accused of theft and the evidence is apparent, employees still have rights. All processes that take place to determine the facts should be fair and consistent.

Employee theft is a sensitive topic and should be handled so. It is also essential to remain lawful throughout the process.

Failing to follow correct protocols can lead to unfair dismissal cases being raised at an employment tribunal. Investigations should be thoroughly carried out but discreetly. Other staff members should only become involved on a need to know basis to avoid speculation and bullying or other unfavourable behaviour.

Employers need to be sure that accusing members of staff doesn’t lead to discrimination. The end result could be the employee raising a grievance of their own. It is a difficult process to navigate with there being a fine line between thorough and fair. Following proper protocols is the only way to handle employee theft whilst preserving the rights of the accused.

Look For The Bigger Picture

Sometimes drastic measures are taken when staff are experiencing stress in their lives. Employers have a duty of care towards their employees, even when they have been accused of theft.

In an article written by Zurich, there are some alarming statistics concerning theft in the workplace. New statistics show that the cost of living crisis has seen work theft increase by 19% in England and Wales. Desperation can make people do extreme things and employers may wish to remain mindful of this.


Workplace Theft Prevention Policies & Procedures

All companies should have effective policies in place to deal with workplace theft. Even where the likelihood is minimal and is not costly should be handled in the same manner.

Staff should be given copies of such policies so that they not only understand the repercussions, but are aware of actions that may be considered theft. It should be made abundantly clear from day one of employment how seriously this matter will be taken.

If theft has taken place and a pattern is emerging, it might be necessary to review current policies. A risk assessment may be a practical step too.

Policies should be lawful, consistent and clear when it comes to employee theft. They should outline what will happen when theft is suspected. This should include warning staff that lockers and bags may need to be checked. Such policies should also outline the employer’s responsibility to involve the police where necessary.


5 Ways To Reduce Theft In The Workplace

There are practical things that can be put into place to reduce the likelihood of workplace theft. We share the top 5 most effective steps in preventing stealing in the work environment.

  1. Increase the stock checks that are done in the workplace. These should be done as often as possible so that any theft is noticed as soon as possible. Inventories and stock checks should be done using a fair rota system.
  2. Where data theft is a concern, security should be watertight. Only those who need access should have the passwords. Employees handling such information should sign a data protection agreement.
  3. Staff should be reassured that any complaints about this matter will be handled confidentially.
  4. Offer staff bonuses and other perks such as discounts to prevent the temptation to steal. Having monthly rewards for the staff can help boost morale too.
  5. Be involved with the business. Sitting in the office all day won’t encourage positive employee employer relations. Building up a good working relationship will allow staff to come to you with confidence.

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