3 things employers must remember when managing theft in the workplace

We all want to be able to trust our employees to do the right thing, but what happens when the numbers aren’t matching up? Jumping to conclusions and making rash decisions is the last thing you want to do as an employer in this situation, so in this article our experts explain the ins and outs of how to handle theft in the workplace and the processes that should be followed to avoid costly mistakes.

1. First things first: investigate

Now, before you jump the gun and fire an employee on suspicion of theft, it’s crucial to objectively assess the entire situation to determine whether this person has stolen from you.

This involves undertaking a formal investigation to gather as much evidence as you can, to support the allegation that the employee has acted dishonestly. An investigation involves:

• Gathering any written evidence (i.e., cash register reports, stock take reports, or bank statements).
• Interviewing potential witnesses and obtaining written witness statements.
• Gathering any visual evidence you may have, such as security camera footage.
• Reviewing internal policies relevant to the situation (i.e., workplace surveillance and cash handling processes).

The next step is to invite the concerned employee to a formal investigation meeting to discuss the findings. But there are a few things you must do to ensure procedural fairness requirements are met, and they include:

Giving the employee written notice to this meeting;

• ensuring the employee is provided with all relevant information (e.g., what the meeting is for, any evidence that has been collected).
• providing the employee with reasonable time and opportunity to prepare for the meeting (at least 24 hours’ notice).
• reminding the employee that they’re entitled to have a support person present for this meeting.

2. Is suspending an employee an option?

Can a business suspend an employee while investigating an allegation of theft – and the answer is tricky. To enact a suspension, the employee needs to pose a genuine risk to the business or the investigation if they continue working while the investigation is active.

If a genuine risk exists, suspension can occur and should include blocking site access and IT access. However, you must ensure the employee is suspended with full pay as the allegations are just that, allegations, which haven’t yet been proven.

3. Retrieving stolen property: can it happen?

At this point, you’re probably wondering, how can I get my stolen property back? This can be an issue as it’s not something employers can withdraw from an employee’s pay – recovering the value of the stolen property isn’t a lawful deduction under the Fair Work Act (Cth) 2009.

Talking to the employee and asking whether they’re willing to return what they’ve taken may seem like a waste of time, however, it’s the best – and easiest – approach to getting your property back. If you only meet a dead-end with this tactic, you can choose to involve the police with the hope that it prompts the employee to return your property to avoid legal consequences, otherwise, it may be open to you to commence court action.

Talk to the experts today

Dealing with theft in the workplace can put you in a tricky position, our workplace advisors are here for you and ready to provide you with 24 hour assistance. Contact us today for a free chat to see how we can help.