How to deal with employee theft

How can an employer prevent workplace theft?

There are effective measures an employer can take to help prevent theft. The exact method will depend on what sort of assets you are trying to secure.

How to prevent intangible assets from employee theft

It’s important to actively put preventative measures into place for intangible assets. Most of the time these assets are the most valuable to companies.

Time theft:

●      Replace a paper-based staff sign-in system with a digital version.

●      Review and then restrict access to timesheets.

Personal data theft:

●      Invest in better tougher cyber security measures.

●      Review who has permission for access to commercially sensitive information. This includes data and personal records. Make the permissions stricter.

●      Create tighter password protocols for specific accounts and company systems.

●      Review and then restrict access to authorised personnel.

How to prevent tangible assets from employee theft

The greatest deterrent is the use of CCTV. Having this alone makes employees think twice before stealing. Tangible assets are generally easier and quicker to identify as stolen.

Business supplies, company property and cash theft:

●      Undergo frequent internal company property and stock checks.

●      If you can afford to, look at paying an external organisation to do a physical stock check. They tend to be more accurate than internal ones.

●      Undergo regular inventory checks.

●      If the business is in the retail or hospitality sector it’s good to check employee lockers and bags randomly. However, to legally do this it must be stated in the employee theft policy or the company handbook.

All companies should have a theft policy in place. Having one can help you act fairly and legally in the event of theft.

How to deal with employee theft in the workplace

When an employee is caught stealing you need to approach the situation cautiously. Without sufficient evidence, they could take legal action against you.

You must make the employee aware through verbal and written communication.

State the allegations against them and write a letter of suspension.

The letter should not declare them guilty but rather note the start of an investigation.

Suspension should be a last resort, this may not always be necessary.

How to conduct a thorough investigation for employee theft

Make the theft investigation discreet. You don’t want rumours spreading in the workplace.

You’ll need to conduct a reasonable investigation that is fair to all involved. Trace the theft, carry out enquiries and ask for witness reports.

Identify any vulnerable business processes that a specific employee may have more control or influence over. Then check for any differences and inconsistencies.

Ensure notes are kept on each step of the investigation. The evidence will need to be filed, dated, checked by two or more individuals and time-stamped.

How to inform the employee

You will need to inform the employee verbally and in writing of the evidence against them.

The employee’s personal and workplace circumstances should be taken into account before action can be taken.

Things to take into account:

●      The guidelines in your theft policy or handbook.

●      The employee’s disciplinary record.

●      The nature of the allegations.

●      Length of service.

●      The attitude of the employee.

●      The personal circumstances of the employee.

In instances of gross misconduct, employers may be able to enforce summary dismissal. This is when an employee is let go without notice pay.

This is only for instances of gross misconduct.

How to take disciplinary action against an employee

Before taking disciplinary action, you will need to conduct a disciplinary hearing.

A disciplinary hearing is part of a formal process where an employer deals with employee misconduct. In this case, it will be theft and possible gross misconduct.

You will already have set the process into motion with the investigation you’ve been conducting.

These are the steps on how to hold a disciplinary procedure:

●      Conduct a thorough investigation.

●      Inform the employee in writing.

●      Hold a meeting to discuss the theft with the employee.

●      Allow the employee to bring a companion.

●      Decide on the disciplinary action after careful consideration.

●      Inform the employee of your decision in writing.

●      Provide the employee with time to appeal.

After the hearing, you will need to decide the outcome. This could include a verbal warning up to dismissal without notice.

How to dismiss an employee for gross misconduct

You can dismiss someone who has been caught stealing from work for gross misconduct after an internal investigation and disciplinary hearing.

If you fail to conduct a fair investigation and hearing, then this could lead to unfair dismissal.

Assess your next steps

If you find that there wasn’t substantial evidence or there are mitigating factors towards the employee, then it isn’t a sackable offence. There are a few things you can do to protect your business.

●      Introduce new safeguards.

●      Make changes to work processes.

If you do go ahead with the dismissal, you will sometimes need to notify the police and attain a police report. This will allow you to claim a payout from your insurers.

Get expert help on employee theft

It can often be hard to navigate an investigation on your own if you don’t have an HR department. It involves leading a fair and reasonable investigation and taking disciplinary action towards an employee. You will also have to think about how you can prevent any other thefts in the future.

Poor investigations and workplace theft procedures can become expensive for employers, especially if the case goes to an employment tribunal.

That’s why we offer 24/7 HR and employment law advice at Employers Direct. We take care of everything from all the legal processes to advice on dismissing the employee.

Want to find out more? We provide free legal advice and will help you decide the best course of action. Contact us at 0800 152 2287 or click here. 

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