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Theft in The Workplace: Where the police don’t take action

Theft in the workplace

Theft in the workplace is a fact of retail but it can still be difficult to deal with. There are various things business owners can do to protect their organisation without necessarily involving the police at all. This article will outline what to do if you suspect a theft has been committed, and how to deter thieves in the first place.

What is theft in the workplace?

Theft in the workplace can take place in a variety of ways. Employee theft is defined as ‘any stealing, use, or misuse of an employer’s assets without permission.’

Types of theft in workplaces

There are two main categories of theft in the workplace:

Tangible theft

Tangible theft involves items that are physically stolen from an organisation such as equipment, machinery and stock.

Intangible theft

Intangible theft in the workplace involves the theft of intellectual property like copyrights and trademarks, permits, data and computer software. This type of fraud tends to be the most damaging for businesses in the long-term.

Most common types of theft in the workplace

Using the retail industry as an example, the Centre for Retail Research reveals that the most common types of workplace theft are:

  1. External theft (shoplifting) – 34.6%
  2. Internal theft (staff theft) – 22.1%
  3. Losses caused by suppliers and warehouse crime – 18%

How common is workplace theft?

According to the most recent report from CIFAS, the fraud prevention service, employee fraud is on the rise. In 2014, for instance, recorded internal fraud rose by 18% from the previous year, and 2013 saw a 22% increase in dishonest actions by staff to obtain personal benefit. These increases may stem from the economic and financial challenges facing many in the UK or they may simply be because organisations are not properly protecting themselves.

According to the National Fraud Agency, theft and business fraud costs the UK economy more than £73bn each year. The increase in cybercrime and the markedly global nature of today’s transactions means this is only set to increase.

How to report employee theft to police

Many businesses will choose to go directly to the police with any evidence that they have in relation to an employee stealing. It is worth noting that businesses have no legal obligation to report fraud to the police or any other body, unless they are in a regulated sector that has a legal duty to report it, such as financial services businesses.

Action Fraud has been designed for businesses to report theft, as well as other types of crime, apart from any that could be an immediate danger to life or property, which should be reported to 999 immediately.

The Action Fraud online reporting tool and contact centre takes reports, analyses them and passes them on to the relevant police authorities. It should be understood that not all cases of theft result in prosecution by the police, particularly if the theft is considered to be low value. As such, many businesses choose to investigate stolen items themselves or outsource the process of employee theft prosecution.

How can I investigate workplace theft myself?

It is important that business owners are aware of the laws governing investigations into theft in the workplace. There are a number of resources available online, such as through ACAS. If problems in the workplace do arise, an investigation must be carried out thoroughly. This means that evidence must be collected.

Business owners are permitted, by law, to conduct covert investigations in the workplace, including the installation of covert cameras. There are two laws which may, on the face of it, inhibit such techniques – these are the Human Rights Act and the Regulatory Investigation of Persons at Work Act. However, if a business owner can show that their investigations can be deemed reasonable in the circumstances then these laws actually contribute to your case.

In many cases, however, theft can be investigated through simpler means. If your company keeps detailed records of its inventory, then tracking theft in the workplace is relatively easy. There is software available to assist in this.

Staff dismissal and why investigations need to be carried out thoroughly

If you decide that a formal investigation is required, it is vital that it is carried out properly and in line with the law surrounding theft in the workplace. A flawed or incomplete investigation can undermine the disciplinary process and leave employers vulnerable to claims for unfair dismissal.

There are three key criteria an employer must satisfy if they decide to dismiss an employee. The employer must demonstrate that they:

  • Genuinely believed that misconduct had occurred
  • Had reasonable grounds for this belief
  • Had arrived at this belief after a reasonable investigation.

Legally, for a dismissal to be judged fair, an employer must show that they carried out a thorough investigation into the matter before taking action. On a related issue, investigations are also important when dealing with employee grievances because the evidence collected shows the employee that their complaints are taken seriously. An open and honest investigative process benefits everyone.

Prosecuting the offending employee

If you decide to take positive action against an employee for fraudulent practice or for simply stealing from you, it may be worth investing in a private prosecution service. Although the police can be the first port of call in many cases, the brutal fact is that they do not have unlimited resources and commercial and business crime, especially when it is internally driven, is not high on their operational agenda. The Police often take the view that the commercial interests of a company do not justify the expense of a thorough investigation and you are in the hands of authorities whose resources are stretched.

Further, if the police are used, the case is prosecuted by the Crown Prosecution Service. For the CPS to continue with a case against a person, it must be satisfied that it is in the interests of justice to take that case on and that there is sufficient evidence to realistically secure a conviction. Of course, what the CPS decide is important in the public interest may not be what you think is in terms of the loss to your business. Whether there is enough evidence to proceed is also dependent upon the quality of the police investigation and how stretched they are in getting the case together. You may be more likely to achieve an effective result, and it may be both cheaper and quicker in the long term, to utilise private prosecution services.

However you decide to proceed, it is important that you take steps to safeguard your business from internally driven fraud. If employees have the opportunity, and if they think that they won’t be caught or prosecuted, then there is a chance that they may steal from your business. But if business owners show that they have robust measures in place, employees are far less likely to turn to crime and you can substantially reduce theft in the workplace.

How to prevent theft in the workplace

Some workplaces clearly promote their zero-tolerance policy for theft in the workplace, which can often work to deter crime. Often, simply talking to staff and informing them that you are aware of potential thefts will act as a deterrent. Not only does this make loyal staff alert to internal fraud, it may also prevent that fraud from happening in the first place: according to the American National Association for Shoplifting Prevention, 73% of shoplifting crimes in the US are spur of the moment offences. Consequently, an effective deterrent will reduce the likelihood that fraudsters take the chance to commit theft in the workplace.

Other preventative measures include:

  • CCTV installation
  • Detailed stock control and management
  • Limiting the number of staff with access to valuables

Theft in the workplace FAQs

What is stealing from work called?

Stealing from work is typically called theft in the workplace. While there are different types of theft that can take place, this is the generic term used to cover these offences.

Is stealing from work a sackable offence?

The consequences of stealing from work can vary depending on the offence and the evidence to support the claim. Theft in the workplace is usually seen as an act of gross misconduct, which typically means it is a lawful ground for summary dismissal. This means the employee stealing from the business can be dismissed with no notice or payment for their notice period.

What should you do if you’ve caught an employee stealing on camera?

In the UK, employers are allowed to use CCTV if it is for legitimate business purposes. While this means you can use CCTV to help with suspected theft investigations, you should be careful about how this is done. For example, employees should be aware that there is CCTV in place and there should be written policies and procedures explaining the ways that footage will be used in line with the Data Protection Act. If you believe you have caught an employee stealing on camera, you must make sure you comply with all guidelines and legislation.

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