What to do when you suspect an employee may be stealing?

The best way to respond to employee theft is to prevent it from occurring in the first place: Use caution when recruiting. Insist on references and validate them. Require criminal background checks of all new employees.

What happens if an employee fails to report theft?

Advise employees that if they know of another employee’s dishonesty and fail to report it, they can be subject to discipline as well. Remember, the word “theft” is a minefield all by itself. Used in the wrong circumstances it could expose your company to litigation, a defamation claim or worse.

How is employee theft a problem in America?

As we discussed in last month’s blog, employee theft is a huge problem. It can be as simple as a clerk at a store stealing from the cash register or taking money from customers and voiding the sale, to a more complicated theft such as employees falsifying their expense accounts or writing phony checks.

How to interview an employee suspected of theft?

* Ask open-ended questions rather than ones calling for simple yes or no answers. The more a person is allowed to talk, the greater the chances he or she will slip into inconsistencies. * Don’t detain a suspect against his or her will.

How to handle an employee who’s stealing?

Look for Signs. A business owner can’t run his business with blinders on.
Gather Witnesses and Evidence. Don’t react immediately.
Document Every Incident. Write everything down and start a file for the situation.
seek help from experts.
Discipline the Employee.

What to do if you suspect an employee of stealing?

If you suspect an employee is stealing, you will have to decide either to conduct an internal investigation or to call in outside expertise. An internal investigation will probably cost less, but consider whether you can do so fairly and without bias, and whether you have the necessary resources.

Can you sue an employee for stealing?

Therefore, you could sue the employee for depriving your business of its property. If the employee has been criminally charged with embezzlement, you may be entitled to repayment for the stolen amount. And if the employee fails to pay restitution, you could use the conviction and restitution order as the basis for a civil suit.

What to do if you get caught stealing at work?

Damage control Consult an attorney. Before you sign anything, you should seek legal advice. Review your employee handbook. Make sure you read through your company’s employee handbook, where you will find information on theft, misconduct and the relevant disciplinary procedures. Talk to your manager. Admit to theft.

How to prevent employee theft in the workplace?

Employee theft is a highly demotivating event in the workplace, and ideally your role should be to consider how you might prevent theft. Running background checks to prevent hiring potential thieves is a necessity.

What happens if you suspect an employee of stealing?

If you use an overly aggressive approach, an employee can claim that you intentionally inflicted emotional distress. If you suspect, accuse or fire an employee based on the suspicion of theft without clear-cut evidence, you can be sued for defamation.

How to handle a case of employee theft?

How you handle a case of employee theft can mean the difference between a simple matter and complex litigation. If you find an employee stealing, it’s important that you handle it carefully so you don’t expose your company to litigation. Prevention and preparation are important.

As we discussed in last month’s blog, employee theft is a huge problem. It can be as simple as a clerk at a store stealing from the cash register or taking money from customers and voiding the sale, to a more complicated theft such as employees falsifying their expense accounts or writing phony checks.

What should you do if you suspect wage theft?

Recognizing wage theft begins with understanding your employee rights and the corresponding remedies. In the event of wage theft, the best step may be to file a complaint. Contact a lawyer if you think your employer is stealing your wages from you.

Is it necessary to do an employee theft investigation?

However, more often than not, an employee theft is suspected based upon indirect or circumstantial evidence, such as another employee report or in the results of an audit. In such cases, an investigation is necessary.

Can a company prove that an employee stole property?

For example, if an employee is found in possession of company property without authorisation while he is still on the premises, it may not be possible to have sufficient evidence to prove that the employee deliberately and/or intentionally wanted to deprive the employer of the property (whether it be money, equipment, goods, etc.)

When to dismiss an employee for theft in the workplace?

If the theft is particularly damaging to your business, it’s likely that you’ll have cause to dismiss the employee for gross misconduct. However, it’s vital to be certain that you’re within your rights to do this, otherwise your employee may take legal action against you. Be aware that your employee has rights too.

However, more often than not, an employee theft is suspected based upon indirect or circumstantial evidence, such as another employee report or in the results of an audit. In such cases, an investigation is necessary.

How does an insurer handle an employee theft claim?

The insurer will then investigate and determine whether payment of the claim is appropriate. There will be appeal rights within the policy if your claim is denied. During this process, it is critical to do nothing that would compromise the insurer’s rights against third parties, including the employee who committed the theft.