When hiring an employee, no one ever imagines that person will end up stealing from the business, yet it can happen. Preventing theft in the workplace and investigating it when it occurs is a real undertaking, and employers should take a reasoned, step-by-step approach to each instance.

 

Consider each case individually

You need to consider the individual circumstances of each case, which may include:

  • the gravity of the theft 
  • the frequency of theft
  • its potential impact on the employer’s business
  • the nature of the job itself
  • the extent of evidence available
  • the employee’s past record, how instances of theft have been handled in the past, and whether the police or other authorities become involved.

For example, an office employee who steals stationery might only justify a warning in the first instance, but where an accountant who has control of large amounts of company funds defrauds the employer, summary dismissal for theft in the workplace would usually be justified.

 

Rules for investigating employee theft

  • It pays to set out some basic rules for investigating theft at the workplace.
  • There needs to be a sound investigation procedure that does not place the business at risk of a defamation or unfair dismissal claim.
  • Act only on the basis of firm evidence. This may include statements by witnesses, cash register and other financial records, video surveillance tapes, etc.
  • You must be able to prove that theft has occurred. The normal standards of proof applicable to court cases apply. You cannot expect a tribunal or court to make inferences from an employee’s conduct that theft occurred.
  • Don’t ‘set employees up’ with contrived tests that seek to catch employees in the act of stealing, such as ‘dummy’ customers.
  • In such cases, employees may behave in the way you are expecting them to, but tribunals often dismiss such ‘evidence’ as ‘amateur sleuthing’ if it is not backed up with other evidence.
  • Generally, employees must be aware that the type of theft is prohibited and will result in consequences if it occurs. This can be communicated through the initial employment contract or letter, company policies, past warnings, and notification that surveillance of employees will be conducted.
  • If an employee appears to be acting suspiciously, question them about their actions at the time. Don’t let them steal something, then make accusations later.
  • Nor should you just suspect a theft without investigating the matter. If you take action and the employee’s explanation later proves to be plausible, or cannot be proven to be false or implausible, the employee may have grounds for action against the business.
  • Note also that you cannot force employees to incriminate themselves.

 

Conducting an investigation

When planning an investigation, determine the extent or even the existence of a loss. The goal of any investigation should be to obtain actual proof that theft has occurred.

Do not consider situations that are not backed up by evidence. A seemingly clear-cut case of employee dishonesty may actually be the result of a well-thought-out conspiracy among several employees, or it may be a complete misunderstanding due to failures in internal procedures.

While it may be useful in some situations to use trained security guards, you must ensure they follow the same procedures as outlined above.

 

Consider the legal implications

As the process of confirming and documenting proof of theft proceeds, consider how the offence relates to the law.

This is important because you will be able to gather information that will assist in a prosecution. If your evidence is enough to prosecute, consider ending the investigation and reporting theft in the workplace.

Continuing with an investigation will cost the business time and money, so unless the offence warrants further investigation, draw conclusions and notify the relevant authorities.

 

Collecting evidence of employee theft

If you decide to continue your investigation, being well-organised is key, so that any gathered evidence or statements are more likely to be admissible in court. In addition, it will reduce the risk of others in the business finding out and drawing their own conclusions. If investigations are disorganised and draw in non-essential staff, the integrity of the investigation will be compromised. 

Once an initial fact-finding investigation has taken place and suspects are identified, it is important to assign appropriate people to monitor the employee(s). If these people are also employees, they need to be genuinely ‘neutral’. 

At all times, keep written documentation about the theft of property by an employee, including the time and date, the missing property, who had access, and any other relevant circumstances. 

Consider possible alternative explanations, such as defects in inventory control systems, or policies that allow the use of company property ‘off-site’.

 

Questioning employees 

You need to comply with certain rules when interviewing an employee suspected of theft. These rules protect employees’ civil liberties.

Employers may question any employee regarding an incident as part of information gathering. However, if an employer has reasonable grounds to suspect a specific employee of misconduct, then the employer must have the employee’s consent before proceeding with questioning.

Employers must inform employees of their rights before an interview. These include the right to have a witness or support person present. 

During an interview regarding an alleged theft, an employee does not have to admit to committing the theft even if they did it. Nor is an employee obliged to inform their employer about the involvement of any other employees.

Admissions made during questioning should be made voluntarily and not due to threats or intimidation. A witness can also verify whether a confession was provided voluntarily or under duress. An employee’s witness may be a union representative, a legal representative, or another employee. An employer may object to an employee’s witness on the ground that the employer may also wish to question that person in relation to the incident.

As with all performance-related interviews, keep a detailed record of what transpired during the interview. You could consider asking the employee and any witnesses to sign copies of the interview record.

Advise the employee of what action will follow the interview, whether that is further investigations, notification of authorities, disciplinary action, or dismissal.